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The Downsides of Borrowing Student Loans

student loans

Are you still deciding on whether to take a student loan or not?  We all know how important it is to get a good quality education in today’s world.

But can everyone afford to go to a good college? People from middle-class families have to rely on a student loan to be able to make their dreams come true. Getting an education loan may seem easy for someone with good grades and decent credit history but there are downsides of borrowing student loans too.

Here are a few downsides of borrowing student loans.

1. You get buried into debt at a young age

A student loan may seem like a lifesaver during your college days but once you graduate, you have to live with the burden of debt on your young shoulder– for god knows how many years. The more you earn, the faster you will pay off your debt. So, a young person has to gamble on the fact that he or she, after graduation, will get a good job that also pays well.

2. Very few students get placed immediately after graduation

Ask yourself this question. How many fresh graduates you have met so far had a job in hand immediately after graduation? Even if you haven’t done such a survey, the number of students who get placed is very low. Most students take a year off to learn industry-specific skills and then get some attention from employers. In such a case, how are you going to begin paying off your debt? The longer the delay, the more interest you will have to pay.

3. You will have to putt-off other goals in life

According to a report from LendingTree, students graduated in the year 2018 had a total debt of  $29,800 at the time of graduation. With a five-figure debt to repay, how are you going to find time to accomplish other things in life. Having a good career is great. But it is not the only thing that makes life meaningful. Most students work super hard for 5-8 years after graduation just to pay-off the student loan.

4. Not paying your student loans in time will cause significant damage to your credit score.

Usually, the repayment period of student loans is a long one. And this can be a good thing as you get to take your time to pay off the debt. Even if you have a low paying job, you can still repay the loan without having to default.

On the other hand, defaulting on your monthly payment will affect your credit score significantly. As your credit score drops, applying for other loans and purchasing a credit card will also get difficult. So, by defaulting on your credit card payment, you have invited a host of other financial problems in your life.


This post is not meant to discourage anyone who wants to apply for a student loan. It is merely a peek into reality. Every student should have an estimate of what they are getting into. This helps them plan well-before they graduate and tackle obstacles in a better way.