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Why You (Probably) Shouldn’t Take out Loans for College

Why You (Probably) Shouldn’t Take out Loans for College

student loan
    School loans can seem like a good idea on the surface – they allow you to go to school without working a job, focus on your studies, and usually have a low interest rate which often doesn’t kick in till after you’ve graduated. But frequently the math just doesn’t add up.

    Sometimes, students take out loans without thinking about the fact that they will, eventually, have to pay them back! College loans are bad in the same way living on credit is bad: it may seem like a good idea at the time, but it’s impossible to know what the future holds and if you’ll be in a better position to repay the loans in a few years than you are now.

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    Calculated Risk

    That’s not to say there aren’t any scenarios in which using loans to finance your education is an ok option. When seriously considering taking out school loans, it’s crucial that you objectively weigh the potential outcomes of the decision. For example, what will your earning power be with your desired degree? There’s no way of knowing for sure what job you’ll get – or that you’ll get a job right out of college – but some industries will automatically pay better than others. Getting loans for an education that won’t pay well once you’re done with school is not usually a wise choice.

    Another scenario is to consider the school you’ll be attending. Some schools – like Ivy Leagues or some private schools – carry a high price tag but also provide their graduates with high job placement rates, high earning potential, and a network of people to help them through their career. In these situations the benefits of such an education may outweigh the risks or detriments of taking out loans.

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    Put Yourself Through School

    If you won’t be getting any help from your family, and it’s up to you to foot the bill for college be sure to exhaust all your options before looking to loans. There are a plethora of scholarships out there – check with governmental and local organizations to see what you can qualify for. Also look at Fastweb.com for a list of smaller and sometimes obscure scholarships that are worth entering. Your high school and college should also be a good resource for finding scholarships.

    Working to put yourself though school isn’t fun, but it can be done. There are the “typical” college jobs like bartender or barista but also check into jobs that provide a higher return both money-wise and career-wise. It’s possible to get a jump start on building your resume while still in college – jobs in professional fields typically pay more plus they can give you the experience you need to get a leg up when job hunting after college. Looking for jobs within your school is a good place to start to ensure that they’ll be able to accommodate your school schedule. Positions like marketing assistant, research assistant, lab assistants and so forth may be available on your campus.

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    And there’s also the option to work as a self-employed contractor. If you want to beef up your writing portfolio, look for freelance writing gigs. Fields like web development, graphic design, fact checking and research are also other areas that can be a good fit for a student. Craigslist is a valuable source for this type of work, but again use all the resources that your school provides.

    Getting through school debt-free may require a bit of creativity but it’s a very viable option and you’ll have much more to look forward to once you’re done besides paying down school loans!

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    Last Updated on March 29, 2021

    Life Insurance: A Secure Way To Protect Your Future.

    Life Insurance: A Secure Way To Protect Your Future.

    Life is a journey full of ups and downs. No one can actually predict what might happen the next moment; there are times where the happiest moments do not even take a second to turn into the gravest. Planning for your future can help you face such unwelcomed but irrepressible situations with much ease. We all want to make every memorable event of our life more special and to cherish all those moments happily and worry less, you must financially plan your future. But no one has control over life and death. Who would wish to see his family suffer in his absence? Insurance hands over the financial jeopardy of life’s happenings to an insurance company.

    Importance of getting a life insurance

    No one has control over life and death. Nobody would like to see their family suffering in an absence, and that’s why many people recommend life insurance. A life insurance plan is one of the best ways to secure the future of your family, even against those financial troubles after an untimely demise. These plans are safe and credible, and you could trust them for your family’s better future.

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    On the other hand, a life insurance policy is a contract between a company (insurance provider) and policyholder in which the insurance provider ensures to pay a certain amount of money to the nominated beneficiary in case of the policyholder’s death during the term of the agreement. There are different types of insurance plans, and it is important for you to know the benefits of those plans such as a funeral, medical or some life expenses provided they are mentioned in the agreement.

    Choosing the right insurance plan

    If you’re about to select an insurance plan, you should consider some important factors:

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    • The time at which you start investing in a program and the number of family members you want to get insured. Obviously, a married man with two children has different needs compared to a single one. The number of persons who are dependent on an individual also varies from person to person.
    • The next thing you need to consider is you and your family needs. What are your child’s dream, your retirement plans, for how long would your dependents need financial support, any personal injury, etc. And do not forget those events or situations that will surely demand a huge sum of money.
    • The next thing one must consider is your current income. You should preferably choose a plan which you can afford.

    Now you must be having a pretty clear idea of how to choose the best plan for you. Further, you should also compare various plans offered by different companies and numerous sites available online that help will you to compare them.

    Differences between life insurance plans

    Here’s a short brief of some plan categories you can choose according to your needs:

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    • Term Insurance Plan – You have to pay once, and your nominee gets the paid money under your misfortune demise. It ensures a person for a fixed time. If you survive the policy period, you do not get your premiums back.
    • Whole Life Policy – This plan continues for your lifetime. Under this, the policyholder has to pay regular premiums, until their death.
    • Endowment Policy –  In case the individual dies during the tenure, the beneficiary gets the amount assured. If the person survives the policy tenure, they gets back the premiums paid with other investment returns along with several other benefits.
    • Money Back Policy – In this a portion of the money invested is returned to the investor at regular intervals. If you survive the insurance term you get the entire amount back; else the beneficiary receives the entire sum assured.
    • ULIPs – These are the life insurance plans that offer you future security plus wealth creation options.

    Many people do not opt for whole life policy and endowment policy because of the high amount of money you need to pay, while others may prefer to opt for these if they have a high life expectancy. Surely you will find the best one for you.

    So what are you waiting for? Plan for your future and live a happier and carefree life today.

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    Featured photo credit: aryehsampson.com via aryehsampson.com

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