5 Reasons to Get a Student Loan If You Can’t Afford College
First, here’s an interesting way to get money for school – if you’re really, really opposed to getting a student loan:
“Send your family and friends your high school graduation invitations, along with a letter explaining your college intentions,” say the writers of 101 Ways to Pay for College. “They may just send you contributions to your college fund.”
My family has no money, so sending a letter asking for money for university would’ve been a waste of time and stamps.
Here’s another option to consider if you’re opposed to student loans: Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships, or Mooching off My Parents is a bestselling book on Amazon – probably because Zac isn’t struggling to pay back his student loans! Might be worth a peek.
5 Reasons to Get a Student Loan If You Can’t Afford College
I took student loans out for both my university degrees, which I earned years apart. I don’t regret either loan (probably because I’m naturally frugal because my family has no money!).
So, I’m a big fan of loans for students who can’t afford to pay for college. And here’s why…
A student loan provides immediate access to college
If you save money for college for years, you’ll never get there! Other things will come up: work responsibilities, mortgages, marriage, pregnancies…and eventually you’ll be 55 and still wondering why you can’t afford college. The benefit of getting a student loan is that you can get your education under your belt right away.
If I saved up for college and refused to get student loans, I’d still be in my first year of university.
A student loan is “good debt” that can increase your credit rating
“Knowing the difference between good debt and bad debt is the key to financial well-being,” says Suze Orman, author of The Money Book for the Young, Fabulous & Broke. “Good debt is money borrowed to purchase an asset: homes or mortgage, education or student loans, etc.”
Good debt is a loan that you have to pay back, that gives you something worthwhile over the long-term. A mortgage is good debt because you get a home out of it, as well as a great investment. A student loan is good debt because you get an education that you’ll (hopefully) use all your life.
And, if you pay back your loan on time, you’ll increase your credit rating. If you don’t have a credit history yet, a student loan is a great way to start one. Another great reason to get a student loan if you can’t afford college!
You won’t have a hard time paying back your college loans
According to the Canadian government (Stats Can), most college graduates don’t have a problem paying back their student loans. Two years after graduation, one in five college and bachelor graduates with financial debt had paid it off completely.
Of course, the ability to pay off your college student loan depends on several factors, such as the amount owed, interest rates, employment, earnings, and personal circumstances. If you’re not a great money manager and worry about paying back your student loan, read 5 Easy Ways to Pay Off Debt. And let me know if you need money tips in the comments section below – I’d love to help!
Student loans increase self-esteem and self-confidence
“Debt can be a good thing for young people – it can help them achieve goals that they couldn’t otherwise, like a college education,” said Rachel Dwyer, lead author of a recent study about how young adults perceive debt and assistant professor of sociology at Ohio State University. “Young people seem to view debt mostly in just positive terms rather than as a potential burden.”
To learn more about how student loan debt increases self-esteem, read The Upside of Financial Debt.
Student loans are sometimes paid off – but not by you!
I – and many other university students who couldn’t afford our education – was thrilled to get a $2,000 reprieve from the Alberta government, back in 2000. The provincial government gave us some sort of a grant for the millennium year, to encourage and help university and college students financially. It was such a gift!
Of course, you can’t apply for a student loan, and hope you get a $2,000 payment by the government on your behalf. But, if you’re positive and optimistic about getting student loans to pay for your college education, you may be surprised by the universe.
But, when you get a student loan, you rarely get off scott free. You gotta pay it back plus interest (but interest on government loans is lower for college students, and doesn’t kick in for awhile after you graduate).
If you decide you should get a loan, here are a few ways to pay off student loan debt.
What do you think of these reasons to get a student loan if you can’t afford to pay for college? Comments welcome below…
Category: College & University Money Tips, Education & Student Tips, Financial Loans & Interest Tips
I second Bruce’s advice! I think having cash in hand is better than spending it on a college education – though college is a great investment. Getting a student loan is the best route because it’s “good debt.”
Building your credit is one of the best reasons to get a student loan. If you want to start a business or get a mortgage, you’ll be glad for a strong credit rating.
If you give your money to someone to hold (someone you trust!!) while you get a student loan, make sure you have everything in writing, signed by both parties.
Rob, I was in the same boat. At 24 I decided to upgrade my high school math, sciences and English so I could go to University. I had several thousand dollars saved from previous years working but did not want to use this money. I was not eligible for a loan if I kept the money in my account so I gave it to my mother to hold for me. I maxed out my loans all through Uni and graduated with around 25k in debt. I got back my money from my mother and started to pay down my debt. I was fortunate that I got a good job right after graduation and I paid it back in two years. the economy was not too good at the time so I was scared I may not have a full time job for long which prompted me to get out of debt as quick as possible.
In hindsight, I think I did the right thing because I had a cushion of money immediately after graduating that relieved the stress of starting life after school. If I didn’t have a secure person to give the money to I would not have been willing to give my money away which I needed to in order to get the loan. And it needed to be out of my reach else i might have found an excuse to spend it! Other people I knew purchased items that they thought would be useful like furniture for their apartment.
So, yes Ron, hold your money tight until you graduate then use it very wisely.
Hi Laurie,
Thanks for this article. I’m a 26 year old guy, going back to college after six years out. I saved up enough money to pay my way through college, but wonder if I should get a student loan? It’s not that I can’t afford to pay for college. I just wonder if I should keep my money liquid and not spend it on tuition and books.
What do you think?
Rob