Taking on debt when you’re young, want things, have little income and have courses to pay for seems, well like a pretty good thing to do. Unfortunately within six months of leaving school, with or without a degree, interest begins to accrue and repayments are expected. Ignore the debt for a while and you may find your student loan is as big as your mortgage. Student loans are good, and in many cases essential, but there are pros and cons, these are a few to consider:
Those are the pros and cons in general of borrowing to pay for a diploma or degree. There are also quite a few differences in the choice between a government funded student loan and a privately funded student loan. Private loans will generally have higher interest rates and less forgiving non-payment or deferment conditions. Government loans also offer benefits of public service, tax shelters, and no or low interest terms which make these loans considerably more appealing for most students and their families. Private loans may require co-signers which could put friends or family in a difficult position if things don’t work out as planned.