Higher education is essential because, as you know, young people have more possibilities especially if they are young professionals. Without studying at the university, especially in the modern world of scientific and technical progress, it is not easy to survive. However, today not every student can afford higher education. It is difficult to enter the budget and sometimes beat the competition. Of course, you can refuse the cherished specialty and choose something more modest; but why should money become an obstacle to the realization of a dream? Moreover, today it is quite realistic to take educational student loans, that is, long-term student loans for higher education with the student loan forgiveness opportunity based on the result of the board of education loans.
Educational student loans can be directed to pay tuition in an educational organization in the number of tuition fees (first educational loan) and to pay for accommodation, food, purchase of educational and scientific literature and other household needs during the study period (accompanying educational loan). Thus, students enrolled in educational institutions for basic professional educational programs are entitled to receive a preferential credit to pay tuition.
According to federal statistics, 70% of current students today have credit cards. However, only 17% of their owners are familiar with the terms of use. The remaining 83% do not even know about the interest rate, fees, taxes, activation fees, maintenance, outstanding debt, and other tricks. The average debt of an American student on credit cards in 2009 was $ 4,100. This year, according to unofficial data, this figure could exceed $ 7,000.
Today, students have a variety of credit cards with an available balance ranging from $ 500 to $ 30,000. Several tens of thousands of young people have a debt of more than $ 100 thousand.
Some statements that slip on the Internet about the harmful effects of student debt and how to get financial aid are not always justified. There are a lot of positive and negative aspects of this decision. The main thing is to take everything thoroughly and correctly weigh all the consequences. If you cannot decide how this decision will affect your future life, we will provide you with various factors that you should pay attention to.
You may lose interest in the chosen profession
Making decisions immediately after graduation, you do not guarantee any stability. The job you had chosen when you were 18 years old may turn out to be erroneous. And also, it will not interest you anymore. In this case, your debt will increase. And you will not have the opportunity to repay it as soon as possible. You either have to do what interests you no more and does not bring joy, or try to pay the debt in other ways. In any case, it will bring some discomfort to your life. We advise you to be very careful when choosing your future profession.
Your loans affect your rating
Avoid moving your student loans to default. Your employer can check your credit before hiring you. As you know, having a low credit rating negatively affects your score and can cause inconvenience while applying for a job. Do not let these kinds of moments interfere with your career path and take responsibility for credit issues.
Your credit history shows your level of responsibility. Repay your student loans on time and fulfill all requirements to earn yourself a good reputation. It will be a kind of proof for your future employer that you complete the tasks on time and following the standards.
You can make your loans your pride
It implies another point. Your credits can be the moment of your life that you are proud of a lot. The fact that you were able to pay your loan has a positive effect on the recommendation about you. If you can repay it faster than the due date, you will get an even higher rating. Make your student loans part of what you are happy about. It can be one of the examples of how strong qualities you have and will have a positive result when you are hired.
You can’t risk
Your debt, which you will have, may affect your ability to manage the risks you face in the future. Your ability to move around the country and the world will be limited. The possibility of moving will be reduced respectively. Before taking a loan, prioritize and imagine the conditions that you must adhere to while paying the loan. If you are not ready to make this kind of responsibility, you better find another option to finance your training. Otherwise, you can tarnish your reputation or do business that only brings you a negative message.
Making a loan is always a risk that in the future may not be justified. Unfortunately, in the conditions of economic instability, an applicant cannot know for sure that in the future he will have a highly paid position and an opportunity to repay the loan as soon as possible.
Besides, the bank also cannot be sure of the borrower’s solvency; therefore the requirements for such persons are quite severe. Particularly scrupulous banking structures belong to the provincials, in the stability of which they strongly doubt. But you should not despair either, because an educational loan is a real chance to become a man.
In conclusion
You can let loans define you - as a failure or as a success. They can be a burden or an incentive for your career. In any case, student loans will affect your working life. The good news is this: you have the opportunity to determine whether it is good or not. It makes sense to take an education loan only if there is a certainty that professional activity after graduation will bring a high and stable income ratio and not rely on student loan forgiveness 100%. That is, an educational loan is an additional reason to think about the correctness of the chosen specialty and its future competitiveness in the labor market.
To avoid all unpleasant things, learn to accurately assess your financial capabilities, carefully read the loan agreement and consider the credit interest. If you have even the slightest suspicion that the level of your income may not allow the timely and full payment of the desired loan, immediately abandon it.
