Student loans: myth or reality?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

What do you think about when you take out a bank loan?

Deals like student loans are not new these days. University students can purchase the necessary thing in installments or apply for a bank loan for the purchase of a particular product. It can be said that a student's life is not sugar, because he is deprived of many things. Buying a car or modern technology like a laptop is beyond his power.

However, there are also such financial institutions where students are given loans and at quite affordable interest. But a number of questions arise. Is it safe to take on such a burden as a loan? Under what conditions should you not sign a loan agreement?

Student Borrower

Thought, then you take a bank loan. Have you thought that from month to month you need to repay interest on a consumer loan, and provided that you are a student and live off only a scholarship, it is hard to believe in a happy resolution of this situation. It is quite another thing if you have a permanent job that pays well. In this case, you may well set aside part of your income to pay off interest on obligations. Such a measure is effective and will save youfrom additional costs.

Delayed loan

It is worth noting that when providing loans for students, banks detail in the documents all the financial details of the transaction, including the payment of a pen alty to the lender (the so-called "pen alty"). So, subject to non-payment of interest on the loan, the amount of payments on the loan will grow from day to day and may exceed the original one at times. Therefore, if you do not pay interest once, next time you will not be so reckless, knowing that pen alties may follow each time.

Goods taken on credit are unnecessary goods

As a result, it turns out that by taking a loan from a bank, you can pay twice or even three times more for the goods. Banks provide loans to students, counting on their impatience and vehemence. Otherwise, you could do without borrowed funds, and purchase the necessary thing with the money you personally earned. Not to mention the fact that if you set aside a part of the funds from your salary for a purchase planned in the future for a couple of months, you would definitely decide whether you really need this thing or you can do without it. Over time, a person who got into debt catches himself thinking that by and large he does not need this product, but the contract with the bank has already been signed.

Credit is a headache for a student

Before agreeing to offers such as student loans, a student, first of all, should consider whether he canit’s good to prepare for the session, when his head is full of how and when to repay the loan to the bank. The psychological factor prevails over him. Every day a student solves many problems, and a debt obligation will burden him morally.

Yes, no doubt, wondering, "Do banks give students loans?" - you can answer: of course, they give all students loans at high interest.

But is it worth taking them - everyone decides for himself.

The decision must be made carefully, not in a few minutes!