Here are three reasons why taking out student loans to pay for college is a bad idea 鈥?and what you can do instead.You’ll have to pay interest. One of the worst things about student loans is the fact that you’ll always pay more than you originally borrowed, thanks to interest.
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Why are student loans bad for You?
Student loans mean you start out life with debt. If you rely on student loans to pay for college, that means that you will start out your adult life in debt. Sure, that college education might mean that you earn more money over your lifetime than someone with only a high school diploma.
Should you take out a student loan?
That being said, any time you take out a student loan, you鈥檙e taking a blind risk on something that has potentially serious repercussions for your future. Even though the average amount of debt owed by college students is just shy of $30,000, it鈥檚 not unusual for debt to be much higher.
What happens if you don鈥檛 repay your student loans?
Falling behind on student loan repayment can lead to delinquency and default. After just graduating from college, you might find yourself living on a modest income. If you have student loan debt on top of that, it could be a bit of a struggle to make those monthly payments.
Are student loans a necessary evil?
If you’re getting ready to apply to college and don’t have the funds to pay for your entire education, you might think that taking out student loans is a necessary evil. College graduates from the class of 2017 who took out student loans borrowed nearly $30,000 on average, according to data reported by schools to U.S. News in an annual survey.