Is It Wise and Effective to Get a Student Loan?

“The borrower is servant to the lender.”
-The Bible

According to the Federal Reserve Bank of New York, the amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards.

It is a wise move to obtain further education and get better qualifications to go into the competitive job market. However, is it prudent to obtain a loan to pursue your further education? I sincerely do not think so:

·         Study at a disadvantage: While other bright students obtain sponsorship and get admitted to prestigious institutes of higher learning, you have to find your own way financially to study at other Universities and colleges. Because you are not as good as other academically excellent students, you are unable to obtain the scholarship. You can only settle for second best in education.

·         Getting a job: More likely than not, for a student who has secured a scholarship, he or she is under bond to work for the company which provides financial assistance for a number of years. Their future is secured.   For those who are studying on their own, they are not so sure of getting a job upon graduation. They are lucky if they can get a job within a few months.

·         Saddle with debt to start your life: While others can look forward to starting their career with a clean financial record, you have to be burdened by a student loan that you cannot escape. Just think there will be at least two more loans to finance your car and your dream home in the course of your working life and not to mention marriage and starting a family. Life is indeed unfair.

Solution:

Work very hard to excel academically and look for a sponsor to finance your education. You will build your career without financial commitment.