Do We Really Need Student Loan?

There is no doubt that student loans are one of the best ways to pay for college tuition and college expenses when all financial aid has been exhausted. A majority of college and university students use student loans to help put them through college and to pay for other college expenses. However, many graduates are having a difficult time repaying these student loans after graduation which raises a very important question; do students really need student loans?

Grants, scholarships and personal savings as we know, do not fully cover tuition and other college expenses so students are left with no other choice but to take out student loans to help pay for those extra costs. It may not be the best thing to do, especially if you’re not going to be making enough to pay back these hefty loans, but at least student loans are an option for students to consider and to help them complete their education.

Can you even imagine what will happen to our economy and society as a whole if student loans were not available? The thought is frightening, because without student loans there will be less people going to college, less people pursuing higher or advanced degrees, less qualified individuals on the job, unskilled workers, higher unemployment rate, homelessness, poverty, welfare and the list goes on.

If you must take out a student loan however, you should first apply for Federal loans. Federal loans are great alternatives to standard loans. Even though standard loans offer many benefits, they cannot compete with federal student loans. Federal loans offer a variety of benefits such as:

• Lower interest rates
• Interest-only or deferred payments while you’re in school
• Lenient repayment terms
• 6 month grace periods before repayment begins
• No credit check required

There was a time when higher education and degrees were not necessarily a requirement for most entry-level jobs, but today it seems as though to get a job as a blacksmith, you are required to have a degree. Nowadays if you don’t have a degree, your chances of getting a decent paying job are limited. So this is why it is so important that we utilize all form of financial aid and student loans available to us to make our future brighter, but taking out loans also comes with the responsibility of paying them back and this is where it gets ugly!

If you can afford to pay out-of-pocket for the rising cost of a college degree, then really do so. Actually, that’s the best and ideal situation, but until then, do we really need student loans? Absolutely!