This site requires Javascript. Please enable Javascript in your browser for this site.

Pros and Cons of Student Loans


In the United States, most students take at least 10 years to pay off their debt on college loans. However, it is not entirely impossible to pay off your debt in a shorter amount of time. Even so, debt can decrease depending on the type of work or profession you acquire after college.

Considering on the uncertainty that lies beyond on whether how much student debt is going to weigh on someone who is new to college, student loans should be carefully processed and analyzed first before you apply. You should always do a proper research before applying for a student loan. Many companies offer various student loans at different interest rates.

Scholarships and grants would be an option for you to access higher education, however, these require certain criteria for you to be accepted. College loans also look for specific standards regarding their adherence; they are more flexible and accessible than scholarships and grants. However, before applying for college loans, there are several factors that you must be considered.

Advantages of College Loans

1. Rewards for excellent credit.

This is only applicable to those who have private student loans that have to adhere excellent credit. Rates can go as low as 2.9 percent. Paying of loans will help you build credit, an advantage you will need during your years in profession and in accomplishing your life plans.

2. It lets you afford to study in degree programs.

College loans give you the chance to be educated in any university or college you prefer as long as you are all set with their admission requirements. You won’t need to stop your formation years in attaining higher education just to earn money and save up for it. Simply study first, pay later.

3. It can be used beyond the tuition fee.

College loans can be used in a variety of choices in which you need financial aid to. It can pay off your dorm room, your books for classes, and anything other than just the tuition fee. The loan in itself is flexible enough to allow you to spend it in areas in which you need help with financially.

Disadvantages of College Loans

1. Student loans can be expensive.

Former U.S. President Barack Obama once claimed that he didn’t pay off his student loans until he reached the age of 43. Considering the line of work he was in and the interest rate of his student loan when he first applied, it was no surprise that even he struggled to pay it all back. Even after graduating college, the expenses a person never changes, he or she still pays the rent, food, utilities, and many more. Setting aside money to pay off debt can be quite expensive in retrospect and can cut off a huge part of your financial budget for your life plans.

2. It can tank your credit score.

Not only you have to put off a part of your life just to pay student loans, it can cause a major disadvantage if you fail to keep an excellent record in your credit. Renting an apartment would prove to be much more difficult. Seeking a job prefer you to have an excellent one. It affects, for the most part, how you receive and disseminate cash flow after you graduate.

3. Increasing interest rates.

Wonder why it took some students 10 years or more to pay back college loans? It is because of the increasing interests of payment plans and inconsistent application processes of college loans. In hindsight, it can be possible to pay them off but it will take years and a lot other life plans sacrificed for the sake of paying it back.

College loans are a highly debated topic and almost every demographic has a say whether or not the scheme of financial aid alone defeats the purpose in the end. Whether it be professionals or fresh graduates, even students who are still in college have a variety of opinions regarding the issue. 

Nevertheless, in applying for loans, students should consider these factors first to avoid unnecessary frustrations and regrets later in life. Though a student loan may have disadvantages, the advantages can surpass the disadvantages if properly selected.

Academic Guide

Works as Management Team at Our School and Us