In today's article, I want to talk about student loans and how it is good to use them as a commitment instead of using our parents' money for our studies. Many people have the sophistication to get money from their parents and use them for their studies. Maybe for the lower grade classes it can be okay but after we are in college doing some specific courses it is good to take student loans because it creates a feeling that we are studying with our own money and we are fully responsible for repaying it after we complete our studies. This will create a slight pressure on us and make us responsible.
Some students get some grants and scholarships where they either don't have to pay any money or they pay only a small amount as the tuition fee. Either ways it is good but for others getting a loan is a good thing and we should have the commitment to replay that after we are done with the course and we get into a job.
Debt affecting the financial stability
We have to understand the importance of repaying the loan as soon as possible. It not only creates debt pressure on us but it will also affect our financial growth. I specifically wanted to write this article because one of my friends who took a huge amount of money as his education loan is still repaying his loan because he did not have good financial discipline.
When he was an undergraduate, he took a loan and after he completed his studies, he applied to a foreign university and there again he applied for another loan. Both the loans combined together became a huge value and he did not have the discipline to repay the loan on time. The interest accumulation started increasing and today it is sitting as a very big number and it has been almost 10 years and he hasn't repaid his loan yet.
Staying away from loans
This is an option because it is not good to fall into the trap of a loan at a very young age. Especially in countries like India where the loan interest rates are very high, it can be a big burden on both the individual as well as the family. I took an education loan for my studies but it took a few years for me to repay the loan. My family members helped me repay the loan but I would say it is better to not take any loan at all or take a soft loan from any close family member and repay the money to them. This way the burden can be greatly reduced.
For people who are taking their higher studies at a later point in life, it is possible to earn enough money to do higher studies. That's the most welcoming thing because it is not very urgent to do everything at the same time if we cannot afford it. We can plan our life accordingly and do such things.
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