- Personal Finance»
- Paying for College
What You Should Know About Why Student Loans Are Worth It.
Instead of loan sharks there's a friendlier version out now - loan pigs!
Student loans, everyone has heard about them and everyone hates them. So is it good or is it bad that people are racking up their loans? It a wise choice to take out a certain amount of money to support yourself while trying to work, go to school, do extracurricular activities and have a personal life? Even though most of what you hear is about people in the hole financially, being smart about loans and not being afraid to borrow what you need is what experts are saying is a wise choice.
I know we’ve all heard the stories about people with hundreds of thousands of dollars in student loans and still working at Wal-Mart, most of the people in that much debt have mainly gone to for-profit schools and have chosen a specific subject that wasn’t in a high demand in the job market. Being educated of all of the options is half the battle for most people. They will turn down a school because of how much the tuition is before they even try to find out what aide, grants, and loans they qualify for. “One in six students at four-year schools who qualify for student loans do not take them out, a 2010 study found. Smart frugality? For some. But many of those students rack up high-interest credit card debt” (thewashingtonpost.com).
For instance, I did not even want to go to school till I was 24 because my parents made too much money and I didn’t qualify for financial aid till my birthday that year. I was really afraid that I would get myself in a position where I would get into too much debt for something that I didn’t know if I would even want to do for the rest of my life. The point being is that, I didn’t know that once you got average grades or above you could get grants that helped you out with school and tuition. Basically free money. I could have taken out a small loan and paid it back with what money I made working, because a school grant would pay for most of my rent. Just goes to show you that what you know is everything.
Right now I have the Pell grant, a small subsidized loan to help with my living expenses and I work part time at two different jobs. But if I didn’t have that small loan, I don’t think I could focus on my studies nearly as well. Most people who drop out of school work more than 20 hours a week, and have a high tuition cost at their school of choice. Working hard to pay off your loans is a great thing, but when you take out the loans to study hard in school in the first place….the point to work really hard is kind of an oxymoron.
In some aspects being afraid is a good thing; you don’t want to get too confident in what you’re doing because you might lose your perspective of being cautious. Turn on the light before you go down the stairs in the dark, right? Falling would definitely bad. Make sure that glass sliding door is REALLY open and not being sneaky. Same thing applies to student loans, just on a little bit of a bigger scale. Be cautious, but not so afraid you’ll reject something that could potentially help you. Yes, there is the worry that you could possibly get into an insane amount of debt, the fear that you will never be able to pay them off and that your life will revolve around the loans themselves.
And truthfully, you probably will have some debt, and that IS scary….but would you trade off a little bit of debt for something that will give you something that is more recession proof than anything else? “At the public four-year colleges, the median student who got a bachelor’s degree owed $7,500. (How scary is that?) At private nonprofit colleges — places such as Goucher College in Towson and Yale University — the figure rose to $15,500” (thewashingtonpost.com).
More times than not, what employers are looking for in people are their education and experience. If someone else has the education and you don’t, it’s usually a game over. Sometimes they’ll call you in for in interview just for a second option, but unfortunately everyone that’s looking for a job has been stacked up like baseball cards and has possible “employee statistics” that are almost instantly judged and weighed in or out of the final interviewing process.
Employee Applicant Statistics Card
Katherine Mullen: Meaning- Irish Heritage
Age, 25: Meaning- Somewhat experienced in the work-force and maybe more mature
Race, Caucasian: Meaning- Non Diversity
Gender, Female: Meaning- Might need to go over the dress code rules more than once
Some College: Meaning- Either not as qualified as the other guy, or kind of qualified (depending on the job)
Most retail jobs you apply for won’t require you to have any college education, but get into entry level stuff for any other company, say graphic design, and they’ll want you to be at least enrolled in the program of interest or be certified. If you go higher, then usually they’ll have internship programs or want you to be almost done with at least an associate’s degree. The ladder just keeps on going up.
“The unemployment rate for those with at least a bachelor’s degree was 2 percent before the recession, rose to 5 percent and is now below 4 percent. In contrast, unemployment for people with only a high school diploma spiked to 11.9 percent and lingers at 8.8 percent, according to the Bureau of Labor Statistics” (thewashingtonpost.com).
It’s no accident that people that use their brains are getting ahead of the curve with their employment baseball statistic card. So yeah, I say go for it in any way that you can. With a loan or not, getting an education is the best thing that you can do for yourself and getting a student loan with possible aide is just a stepping stone to making it easier on you, and smoothing out the path to a more foreseeable successful future.