Senior Year Benefits
Senior year is full of making decisions and wondering if they are the right ones. One question that many of us ask ourselves is, do I need to take out a loan to go to college? It is not necessary to take out a loan for college. Paying with cash is the best option! Impossible? Not so much. Want to know why student loans should not be used? Two reasons they should not be used is that you have to pay interest, and they may take years to pay back, but it may be the only option for some people.
Getting a student loan has its consequences. One consequence is it takes years to pay back student loans. For example, there was a couple who got married and had dreams of traveling and exploring the world together, but unfortunately they both
had $80,000 in student loans to pay off. That is $160,000 total student debt! Now they have to set aside their dreams all because of their student loans (video 1). This is not uncommon; for instance, “Two-thirds of college students graduate with student loans” (pg. 108). Plus having interest rate on your student loans will cause the price to go up and it takes longer to pay back. Another consequence is that when students take out a student loan, there is interest involved. Depending on the amount of the loan and interest, your total can double in size. Not many know this but, “30% of student loan borrowers drop out of school and have to find a way to pay back their student loans on a high school graduates salary” (pg. 107). Having to pay back both money for the loan plus money for the interest can put in thousands of dollars in debt. Right now there is “a trillion of dollars in debt from student loans” (pg. 104). On the other hand, student loans may be the only option for some people who don’t have the money, but it will eventually put them in more debt and cause them to pay more money from the interest rate. Many may not have time to save enough up or their parents may not have enough money to pay. So the only option would be to take out a loan, but the loan would have interest rate. Having an interest rate will raise the price up even more. So now the loan price may double and you are going to have to pay it back. The amount of interest and the amount of time it takes to pay back loans are reasons not to take out student loans, however, for some it may be their only option. Interest rates cause the price of the loan to go up, which takes longer to pay back. Student loans should be avoided at all cost because then you can be debt free.
Getting a student loan has its consequences. One consequence is it takes years to pay back student loans. For example, there was a couple who got married and had dreams of traveling and exploring the world together, but unfortunately they both
had $80,000 in student loans to pay off. That is $160,000 total student debt! Now they have to set aside their dreams all because of their student loans (video 1). This is not uncommon; for instance, “Two-thirds of college students graduate with student loans” (pg. 108). Plus having interest rate on your student loans will cause the price to go up and it takes longer to pay back. Another consequence is that when students take out a student loan, there is interest involved. Depending on the amount of the loan and interest, your total can double in size. Not many know this but, “30% of student loan borrowers drop out of school and have to find a way to pay back their student loans on a high school graduates salary” (pg. 107). Having to pay back both money for the loan plus money for the interest can put in thousands of dollars in debt. Right now there is “a trillion of dollars in debt from student loans” (pg. 104). On the other hand, student loans may be the only option for some people who don’t have the money, but it will eventually put them in more debt and cause them to pay more money from the interest rate. Many may not have time to save enough up or their parents may not have enough money to pay. So the only option would be to take out a loan, but the loan would have interest rate. Having an interest rate will raise the price up even more. So now the loan price may double and you are going to have to pay it back. The amount of interest and the amount of time it takes to pay back loans are reasons not to take out student loans, however, for some it may be their only option. Interest rates cause the price of the loan to go up, which takes longer to pay back. Student loans should be avoided at all cost because then you can be debt free.