Advantages of Student Loans

If the budget is tight, student loans and financial aid are great ways to obtain a college education.

Students have the best circumstances they will ever have for obtaining a loan due to the many public and private loan programs designed specifically for students that provide loans for tuition, books, supplies, lodging, meals, and any other expenses. School loans are possibly the most important loans a person can take.

With an education, young people have the opportunity to increase their knowledge and experience so they will be successful and productive citizens, proving student loans to be a great investment. Consider a student who takes out a forty thousand dollar loan for medical school, and in five years they are making $150,000 annually. That is a quite a return on their investment, regardless of interest.

Like personal loan programs, educational loans operate under similar terms. The interest rate is determined by the current prime interest rate along with individual credit history. If there are any credit issues, a very small percentage will be added to the prime rate. The interest is usually adjusted monthly according to shifting rates. Most young students have little or no credit history, so the interest rates of school loans are usually basic prime rates.

When it comes to paying the loan off, the great thing about student loan payments is that they are often on a sliding time scale or are deferred for a number of years. This allows a student to launch their career without the hassle of making loan payments immediately, or at least until they graduate. It can be really difficult to make loan payments while trying to study and take care of classes.

Almost any further educational programs can be covered by student financial aid. Some common student loans include funding for junior college, technical school, public and private undergraduate programs, career training, graduate school, medical school, and law school. Anyone in the United States should never feel limited by money to get an education.

Though loans may seem like a financial burden, the education you will receive in return is priceless. Because many younger students do not yet have a credit history, a student loan is a great way to start one. A student loan is considered a responsible credit endeavor and any delinquencies affect credit scores minimally. This is the perfect scenario for developing a responsible credit history.

A shortage of money should never be a barrier to education. Getting a solid education can change the entire course of an individual’s life, paving the way to a life of success and financial freedom. If you are considering further education, find out what kinds of student loans you qualify for.

About the Author

Kara Lilly, a Librarian for over 15 years in College Park, creates the Eduology for, a leading provider of homework help, college directories with satellite maps and a comprehensive breakdown of student loans.

For more information, please visit Kara Lilly may be contacted at or

Image Credit: Topics On Earth

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