Loans can be a tough thing to really grasp – while they can certainly get you out of tough situations, there is also the need to factor in any repayments and whether these can be afforded in the first place. All of this is even more true for students. Not only do students find they have little money a lot of the time, but they are frequently found in situations where they might need it, whether it be to pay for textbooks, course fees, or even food. In this article, we take a look at a few reasons why getting a student loan may not be as bad as you might think, and how it can actually help considerably in the right circumstances.
Staying on top of money
Although you might think that a loan for students could be a bad decision, it’s likely that this opinion has only developed as a result of hearing horror stories (and not from the people who actually benefitted from their loan!). the first thing people might think about when contemplating a loan is the potential for it to hurt their credit rating. If some planning goes into the repayment scheme, then there is actually no reason at all why a loan would hurt a credit rating – if anything, regular payments will ensure your credit rating gets better! Even if you do have a bad credit rating already, this will not necessarily stop you from getting a loan in the future. Many loan providers simply need evidence that you have regular enough income to ensure you can make repayments (as you not being able to pay your money back works in no one’s favour). It is also important to note that even though they might seem like it on the surface, student loans are far from a long-term commitment. With the right attitude to budgeting and your use of your money, you can be all paid off before you even finish your studies.
More myths that you can ignore
No one likes paperwork, and for many the prospect of filling out pages of forms can quickly disincentivise the application process altogether. Many student lenders actually have very simple and streamlined application processes, and it’s possible to get approved quickly and painlessly. On the topic of lenders, it’s also highly useful to know that all lenders are not the same when it comes to student loans. Even if you have heard about a bad or irresponsible lender, a small amount of time spent researching can help you find a much more legitimate and honest lender that can meet your financial needs without landing you in hot water. Look for lenders offering transparency and help where you need it, rather than a lender that attempts to fast track you onto a lending scheme.
Is a student loan right for you?
Student loans shouldn’t necessarily be treated like something financially irresponsible people pursue – loans can actually be a highly effective way for people to really take control of their finances and open up some pathways that would have otherwise stayed closed. With a bit of research when it comes to lenders, there’s a very good chance you’ll be able to find a loan that suits your needs perfectly, so it’s a great idea to keep in mind the above myths when making your decision.