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Why the Student Loan Should Be the Last Option in College Education Funding

By Edited Nov 13, 2013 0 0

student loans

Student loans can both be a blessing and a curse to university students across the nation. One benefit of student loans is that these can provide you the money you need in most cases to fund your college education. College students, especially those enrolling college for the first time have exaggerated notions of their starting wages upon graduation and the bills they will confront while surviving in the real world. The truth is, most freshmen university students have no realistic concept of the limits of money as a basis for their decisions as regards to whether or not they can truthfully expect to pay back those loans once they have finished college education.

The distressing truth is that a lot of college graduates discover that for the first 10-15 years after graduating from college, they are basically bound to their student loan debts. There are numerous reasons for this and college graduates will find out different matters about their student loans once the proper time occurs. Firstly, those availing student loans should understand that a university degree does not ensure a high starting wage. Also, a college degree is no assurance that there will be employers to hire you right after graduation. The reality is that nearly all college graduates take about 6 months to a year or even longer to get a job in their fields of study; and even then the initial salaries are often far lower than expected.

Partly to the blame for these exaggerated expectations is the universities' attempt to justify their high tuition fees by showing average starting remunerations of only those that were given successful job offers in the field of study right after graduation (which typically indicates a work history with the company or some other company as an apprentice before being hired) and not those graduates who do not have prior work experience in their selected fields. Part of the expectations come from students reading job ads for experienced workers in a certain field and then assuming that education will allow for the experience that employers demand. No matter what reason, almost all starting salary expectations are unrealistic basing on the current market.

The problem is that for a lot of students a student loan is almost equivalent to receiving a college education. For these students, there are no options. The price they'll pay (including interests) for getting student loans just to fund their education will repay itself within their lifetime if they are sensible about producing the required payments and utilize things such as student loan consolidation on time payments.

Student loans can be a great tool for those who have no other choices when it comes to funding their college education. On the other hand, for those who have no need for student loans trying to build a career and a lifestyle upon graduation could also be problematic. The student loan is a tool for education attainment which should be used only sparingly.

Whether or not you decide to avail student loans for college education funding, it is advisable that you try to find all other available resources first. Find all available options for scholarships, study grants, and work-study programs before resorting to student loans to fund your education.



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