Student loans: not as bad as they are painted
Student loans are a necessity for almost all students. And while starting your working life with a large debt is hardly ideal, student loans are one of the best types of loan available.
The APR of a student loan is the same as the rate of inflation. So effectively, the size of your debt never increases. If your debt at the end of your time as a student will buy you a small car, then after 10 years, although the amount of money may have increased it will still buy you a small car, as the price of the car will have increased at the same rate.
No other bank loan will have such a low APR, because the student loans company does not make a profit while all other loan providers must.
A student loan is the wisest debt to have if you must have one. After you graduate, it’s up to you to make sure you get the help and advice you need to get out of debt.
Tags: debt, Loans, Student Loans
Borrowing, Loans, Student Loans | cashmachine | May 6, 2008
