Education is pretty expensive in today world. To add to the school and tuition fees, there are also the escalated expenses for books, lodging, and food and so on. Students find it very difficult to meet all these expenses. Therefore, they are forced to take student loans. Student’s loans are a mixed blessing. They may be a boon or a bane. Let us analyze them both.
Students Loans-A Boon:
Any student will tell you that student loans are a real blessing in disguise. The main reasons why students consider student loans as a boon are listed below.
1) Easy finance for expensive education: Since education is very expensive, it becomes inaccessible for anyone who lacks funds. At these times, it is only student loans that lend a helping hand to the students.
2) Take now, repay later: Students can take the loans now and repay after they complete their education. It is even possible to defer the repayment if you want to pursue higher education or if you face any financial crunches.
3) Independence: Students gain independence and freedom to pursue any qualification they desire irrespective of the parent’s educational and financial background. Thus, even an uneducated, poor cobbler’s son can become a doctor or engineer with the help of student loans.
4) Inculcates responsibility: Student loans inculcate a sense of responsibility in the students. They strive hard to improve their grades as they know that they have a huge loan awaiting repayment.
5) Even parents can take loans: PLUS Loan (Parent Loans for Undergraduate Students) is also available. These loans can be availed by parents for their children. The above points make it clear that it is definitely a boon for both students and parents to avail student loans. This is a great equalizer that can lead to a totally developed and wholly educated society.
Student Loans-A Bane:
There are two sides to any coin. Similarly, student loans also have certain disadvantages along with the above advantages. These demerits are listed below.
1) Cumbersome formalities: Certain lenders have a lot of formalities to be completed before awaiting the loan. Some of them require signatures for guarantee, co- signer, etc. These pose some more troubles for students who wish to be totally independent.
2) Immature students can face huge troubles: Some students are very immature and the easy money may lure them to accumulate huge loans. Since, they do not have to repay them immediately; they may keep accumulating them without any botheration. Only when they face the time of repayment, they are utterly shocked and start defaulting on their loan. Thus, early in life, they are caught in the vortex of bad credit and they have a poor credit score.
3) Cheaters also exist: Some lenders are shrewd while some are downright cheats. They may get the students to sign loan agreements without properly explaining to them all the terms, conditions and consequences. These students will get stuck with excess charges, high interest rates of long loan terms that they may not be able to handle.
Student loans may be a boon or a bane-it all depends on how the student handles the same. If you are wise, mature, plan your finances properly and then take a loan, you will find student loans to be a boon. Remember, to shop around, get quotes from various lenders before choosing the ideal one best suited to your purpose. Read the fine print of the agreement carefully, clear all your doubts and then, sign the agreement.
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