Student Loans

Student Loans are the best way to Finance the students’ Higher Education. It is commonly taken by students to fund their higher education.

Definition: Student Loans -

- Student loans are loans offered to students to assist in payment of the costs of professional education. These loans usually carry a lower interest rate than other loans and are usually issued by the government. Often they are supplemented by student grants which do not have to be repaid.

- Money issued to a student on the understanding that it will be repaid upon the completion of a student's studies

- student loan is a type of loan that is used by a student to pay for education expenses, such as tuition, books, or room and board.

Explanation: -

In Developed Countries like Europe & USA, student loans are very popular. Government also gives student loans on very low interest rate which students have to start repaying after the completion of the study.

Students loan is an Asset producing Loan & That’s why some Financial Planners call it Good Debt. (Credit Cards, Car Loans & Personal Loans are Bad Debt.). However, Some Financial Advisors & Financial Gurus argue that, going into a huge Debt for taking higher education degrees is an insanity especially you know that there is a severe job crisis in the job market.

According to them, Education system is no longer effective to ensure any kind of financial success in your life. So why to go into a deep debt by taking Education Loans especially you know that there is a crisis in the job market. Rather why not to start your own Business with this much Money?

According to some Finance Gurus, Rather than taking student loans, you should start your own Business. Investment in Business is better than Investment in Education.

However, It is a controversial theory. Some people believe this theory and some are against it.