A college education is one of the most essential investment in a person’s life. Unfortunately, in this time and age, it has also become one of the most costly investments too. Universities and colleges in the school year 2013-2014 cost an average of $20,000 and as much as $50,000 or more for the more prestigious schools. A college degree paves the way for a better chance at landing a better job that is why it is so important. More and more families are not able to afford on their own this privilege that’s why schools have began offering student loans.

A student loan is money borrowed from the school to pay for the education of the student. It fills in the hole that scholarships, part-time job profit, and your parent’s saved-up college education money might not cover. Here in this tutorial, we will be scrutinizing all the elements that surround the student loan so that you may learn how to make the best of going into this kind of debt. We will be tackling everything from how to apply for one to how to pay them back.

Advantages of Student Loans

The benefits received from student loans seems vast as it basically pays for your education. That very education is the ticket of the student to a better life supposedly with the degree you have chosen. Student loans free you from the burden of having to work part-time jobs and bothering your parents or guardians for money if you can’t fully afford the education. It gives you freedom to focus on your studies, maybe participate in extracurricular activities, or perhaps do an internship for your dream company, to worry about the debt at a much later time.

Disadvantages of Student Loans

Student loans, while free you from hardships in school, have a lot of downside to it. If not planned correctly, student loans can haunt you to the point of where you aren’t able to continue exercising the freedom you had from school because you are already trapped in mountains of debt that even the job your college degree got for you won’t be able to compensate for many years to come. In this tutorial, we’ll be learning about how to avoid this by considering the best option for the kind of student or former-student that you are. We will learn about things like repayment, consolidation, and the kinds of loan that will suit your profile.

If all goes well, you will be optimizing the advantages of the student loan and exercising the financial freedom even after your student days are long gone.