Students in College and universities have chosen student loans as a means of financing their education and enhancing educational opportunities which they could not afford before. Afterwards, students are left with a lump sum of student loan debt after graduation with no professions to provide a pay for their debt.
With the rise in the economy, cost of living has greatly increased. Cost of buying food, clothing, rent and electricity and school fees has increased over the years. It does not favour anybody as the students are in the bracket. Many high earning jobs require college education as an entry to their payroll hence education cannot be evaded despite the high living cost.
The amount borrowed, terms of repayment and how a student manages their loan has a great impact in their future. Its important that every student consults a specialist before applying for a student loan. An individual can also consider other alternatives to avoid the debt. This can include living at home to cut on rent expense, taking more classes so as to graduate within a short period, taking a part time job to provide extra cash or finding a roommate to share on costs.
Another important thing a student should be aware of is the interest rates attached to the lent money. It will differ due to the its type, repayment period and the amount borrowed. Most student loans have a fixed interest rate with others increasing weekly, annually or daily. We can thus conclude that the repayment amount is higher than the funds during repayment.
Several years of study has revealed that students take about 20 years paying the debts in their lives. This has been caused by late employments, reduced salaries and lack of career opportunities. It has led to debts increase which has affected the choice of jobs taken, business opportunities pursued, late marriages and poor mortgage management.
But the good news is that most countries have now reduced university fees to increase education chances for citizens. Most students can now afford their tuition fee without loaning. Students can finance their borrowings through various ways. It is so intimidating but the earlier one pays the better and the cheaper it becomes as interest accumulates daily. It also gives one freedom to do other activities, travel and invest.
Planning on how to pay the loan is so important. First step should be making a budget to allocate the amount to be paid. Ways of paying these funds faster include raising the payable amount, repaying frequently and starting the repayment when in school. An individual can also decide to take a part time job or additional hours at work so as to increase his income and finally the amount to be paid. This ensures the money is paid at a short period.
For those who get a well paying job after college, repaying is easier than for those who delay. Either way one must pay the loan as it follows you to the grave. It is not the best way to go about when financing school but sometimes it is inevitable.
With the rise in the economy, cost of living has greatly increased. Cost of buying food, clothing, rent and electricity and school fees has increased over the years. It does not favour anybody as the students are in the bracket. Many high earning jobs require college education as an entry to their payroll hence education cannot be evaded despite the high living cost.
The amount borrowed, terms of repayment and how a student manages their loan has a great impact in their future. Its important that every student consults a specialist before applying for a student loan. An individual can also consider other alternatives to avoid the debt. This can include living at home to cut on rent expense, taking more classes so as to graduate within a short period, taking a part time job to provide extra cash or finding a roommate to share on costs.
Another important thing a student should be aware of is the interest rates attached to the lent money. It will differ due to the its type, repayment period and the amount borrowed. Most student loans have a fixed interest rate with others increasing weekly, annually or daily. We can thus conclude that the repayment amount is higher than the funds during repayment.
Several years of study has revealed that students take about 20 years paying the debts in their lives. This has been caused by late employments, reduced salaries and lack of career opportunities. It has led to debts increase which has affected the choice of jobs taken, business opportunities pursued, late marriages and poor mortgage management.
But the good news is that most countries have now reduced university fees to increase education chances for citizens. Most students can now afford their tuition fee without loaning. Students can finance their borrowings through various ways. It is so intimidating but the earlier one pays the better and the cheaper it becomes as interest accumulates daily. It also gives one freedom to do other activities, travel and invest.
Planning on how to pay the loan is so important. First step should be making a budget to allocate the amount to be paid. Ways of paying these funds faster include raising the payable amount, repaying frequently and starting the repayment when in school. An individual can also decide to take a part time job or additional hours at work so as to increase his income and finally the amount to be paid. This ensures the money is paid at a short period.
For those who get a well paying job after college, repaying is easier than for those who delay. Either way one must pay the loan as it follows you to the grave. It is not the best way to go about when financing school but sometimes it is inevitable.
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