Why Not All Student Loans Make Sense

So the time has come to make the big decision: go to college now or get a job. The college experience is a wonderful one and the credentials you can get are a big step ahead in the job market. On the other hand college is expensive and very few parents have put enough money away to pay for tuition, books, and living for their children for four years. College student Loans are easily available if scholarships are not, so what is the problem?

The problem is that not all student loans are created equal. Depending on such things as interest rates and pay back schedules, some are extremely expensive and some are outrageous. A young person just starting out from high school may not be in the best position to judge amongst all the products out there. Here are some rules to help you decide whether a loan makes good sense for you.

First, given the job market will you probably be able to find a job in the field you are planning to study. Computer science is most likely a good bet, but Medieval French literature is probably not. Both are quite acceptable as majors, but the market for bachelors level French Lit graduates is vanishingly small. The degree just won't pay for the loan. Be brutally honest with yourself and don't take on a burden you will never be able to rid yourself of.

Next, are you really going to finish the degree? Are you going to college to have a good time or to learn life-long skills to improve yourself? It is very important that you look at yourself and find what your real plans are. Fifty to a hundred thousand dollars of debt to have fun for four years is just not a good plan. The bill will come due whether you have used the money wisely or foolishly, it is just easier to pay off if you have been wise.

Finally, a loan is a life choice. If you go to an Ivy League school it can cost upwards of two hundred thousand dollars to cover tuition, books, and living expenses, or twenty-five thousand to go to a local college and live at home. Is the degree you are after the important thing or is the prestige of the school the thing. A law degree from Harvard or Yale will probably be more advantageous than one from State U, but will that in and of itself be worth the staggering debt load you will incur?

There are quite a number of loan packages out there and a college education is a worthy goal for any young person. What you must take into account is whether the loan you choose fits with the life you are planning. Be very careful that you have taken all the variables into account before you sign on the dotted line for a student loan. If you do your homework and think things through, you will be able to make a choice that will do you proud.