Why College Students Should Not Take Out Student Loans

College Students should not apply for student loans because it causes too much debt in the future. College tuition rates keep going up and students are taking out bigger loans. Is a college degree worth incurring significant debt?

Don’t get that loan unless you have chosen a career that will make you very wealthy. This information is important because people forget to realize being in debt is an important thing, Besides going to college the future ahead you might have children, a nice car, a house, or anything else you have to pay money for, that loan you have to pay back will be in the back of your mind.

First when someone takes out a loan they are taking a big risk, because the person does not know if they are going to have the ability to pay it back. College is way harder especially when you’re not motived. This means once they use the loan and you get a job will you keep it?

Another reason you should not get a loan is because they don’t go away and interest rates can be ridiculously high.

According to the article “5 Reason Why You Should Not Take out Student Loans”. Evidence that supports this is accurate because “Unlike with other types of debt, your student loans (in most cases) won’t disappear if you end up filing for bankruptcy. And while it isn’t true that your student loans can never be discharged in bankruptcy, it is very, very hard to have them reduced or eliminated”.

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This means “The interest rates on student loans are much higher than on most other types. Federal loans are often between 5% and 6%, with some graduate loans just under 9%. Private loans can vary between 2.5% and 12% three times the rate of most mortgages, and getting close to the rate of an average credit card. Furthermore, many private loan interest rates are variable, making repayment even more uncertain. While the current climate means that variable interest rates are competitive, this could easily change as they begin to rise.”

People that think student loans are a good thing only have 2 reasons to back it up, those reasons are “that debt has the potential to earn you money, the return will be greater than the cost, making it good debt. The same idea can be applied to student loans. In a basic sense, a college degree allows you to make more money in your lifetime than if you went into the workforce directly after high school”. However, According to “5 Reason Why You Should Not Take out Student Loans”

They can be high risk “many young people, fresh out of high school, are told that they should apply to their “dream school,” and not worry about the money. Guidance counselors preach that financial aid will undoubtedly help make their college experience affordable. But allowing students to naively apply to private institutions with yearly tuition going as high as $50,000 without so much as a warning about the potential consequences of student loans seems cruel, foolish, and irresponsible.” The evidence strongly supports that getting a loan a is a terrible and risky idea are you willing to take the risk?

Cite this page

Why College Students Should Not Take Out Student Loans. (2023, May 16). Retrieved from https://paperap.com/why-college-students-should-not-take-out-student-loans/

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