Student loan proves to be beneficial for the students, but it can be risky as well. There is every chance you may not be able to repay the loan and it means you will be in debts.
There is no doubt that the student loan is immensely beneficial. More and more college and university students in the USA are relying on the Federal loans in order to complete their higher studies and bag their dream jobs. Along with the benefits, there are certain risk factors involved as well. Student loan debt has become a common phenomenon and is quite a serious one.
Student loan debt is a real problem in the US today
It will be really harsh on your part to ask any current graduate where they see him or herself in the coming five to ten years. There will be some with fast reply, but there will be a few who will look blank at you. It is not that those bunch of graduates are not sure of their dreams, but they are stressed with respect to the handling of the student loan repayment that might make them go into debts.
What is the risk factor associated with student loans?
The risk factors involved with the student loans include:
- One of the prominent risks is that you couldn’t finish the degree program and end up giving up college. You will be left with nothing but a large amount of debts.
- You have finished your degree course with flying colors. But, unfortunately, you are not able to bag any job. Loan repayment on time becomes a huge challenge and there will be debts, no matter what.
- There is a possibility that your degree is not marketable or not much in demand. As such, you pay scale doesn’t increase. Thus, it becomes a challenging task to pay off your debts apart from the other expenses that you have to manage on a regular basis.
The above-mentioned risk factors can be minimized to a certain level if you do your research work before enrolling your name in any college or university degree program. You need to be motivated all through the course time to finish off the program and with good grades. Furthermore, you have to choose the course that is currently in demand so that bagging a lucrative job offer is not difficult after you complete your degree course.
Choose safer methods rather than going into debts
The colleges and universities have varying tuition fees. It can vary from anywhere between $1400 to $51000 for the full time students for a year You must note that the amounts don’t include accommodation, flooding, transportation and other expenses related to living. Hence, you have to get a job that also covers all the living expenses comfortably apart from repaying the large student loans.
In case, you find that the student debt could be an issue for you, it is always better to select a college/university that has low tuition fees and the living cost is also low. It is always better to opt for safer methods rather than going into debts.