3 Reasons Why You Should Get Student Loans for College

Despite the abysmal job outlook for college graduates, the amount of college registrations steadily climbs each year. In 2010, there was a 2.9% increase in the number of first time students in four year public colleges from the year before. However, in 2011, there was a marked decrease in the amount of first time students enrolling in college.

Why? Well I think it’s because of the overwhelming amount of unpaid college loan debt, lenders may just be creating stricter loan requirements for first time borrowers. Yeah right! Maybe people are realizing that it costs a lot to get a college education, or they are finally doing some form of cost benefit analysis prior to borrowing money.

Let’s face it, there is a lot of risk in borrowing money these days. You might even been a little scared to get student loans for college, heck I was, but there are three good reasons to borrow money/take student loans out for college.

Because You Need Them

This is the main reason why I took out student loans! Truth be told, the world needs bright, educated, passionate people. Meaning the world needs college educated people to carry the torch. In order for us to move forward, as a country, into the new emerging world markets, high school students need to go to college.

With that said, jobs aren’t guaranteed for college graduates, but the median pay rate (anywhere from $45k to $75k) is much higher for people who have college degrees–that means a better future is possible for those who take the plunge. Now if you can’t afford to pay for the college education in cash, or you don’t have a college fund set up from you parents, you should take out student loans, go to college, and graduate.

If you want to earn a promising living, and you can’t afford it, you need to take out student loans for college. If the return on your investment exceeds the loan amount, then there is nothing wrong with taking out student loans.

Because You Can

I’ve always heard the following statement from my parents and peers, “Why did you do that?!” “Because I can!” The same holds true for why you should take out school loans for college. If you get accepted into an top 5 school, but you don’t have the money and the loan money is available to you, why do you want to turn your nose up at it? Even if you don’t get into a top 5 or 10 school the pay off for a college education can be well worth it, if you choose your major wisely. Yes, the interest rates can be scary, but if you have the smarts and know how to make good money decisions, a loan can be a total win for you.

I went to George Mason University in the D.C. area, I choose an appropriate major for the area I would live in (my major was job market focused) and everything worked out just fine. However, if you’re one of those people who is going to college for college sake… well I have a CAVEAT for you.

Taking out loans for college isn’t a right; it’s a privilege for those who intend to pay back what is owed. Many people, who take out school loans, run into a slight problem after graduation, and put their loan responsibilities on the back burner.

With that said, have a plan!

Because It’s Easy

This one one is a bit of a stretch, but a reason to take out college loans is because it’s easy. I felt a little dirty saying that. However, if you get into your dream school when you start the enrollment process at your college of choice, the Financial Aid office will contact you to start your grant, scholarship, and loan paperwork. Taking out student loans was by far the easiest loan I ever taken out in my life. This is scary and amazing at the same time.

However, you’re a bright, hopeful, and passionate person. You deserve the opportunity to attend college even when you cannot immediately afford to do so. You could have the opportunity to attend your college of choice if you take out student loans. If I had to do it all over again, I would take out student loans in a heartbeat. I can’t imagine how my life would have turned out if I hadn’t attended GMU.

All you have to do is set some time aside and do a bit of research regarding your options. Don’t be afraid to look into online education either. Internet-based schools list their tuition openly through their website. Cross-reference this with some other prices and see what works best for you. Remember that there are numerous benefits to online universities, such as the fact that you can schedule classes how you see fit and easily balance a job along with your education.

Here are my questions for you. Would you take out student loans if you couldn’t afford to go to college? Did you take out loans to attend school?

9 comments

  • Michael Jefferson /

    This is interesting to hear from you. For whatever reason, and I'm not sure if i have reasoning to back this up yet, I would've assume that you would've went the other way on this one. Hmm.

  • URFinanceSimple /

    I never against getting a loan. However, the degree you get with the loan, needs to be able to pay you back and then some. It’s all about the payback period. For example, if you can get into an Ivy League school, but can’t pay for it.. Do it! If you can get into a top their business school, but can’t pay for it. Do it! If you are getting loans to go to Everest.. Don’t waste your money.

  • PKamp3 @ DQYDJ /

    "if you choose your major wisely" – I think you buried the lede, haha.

    I took out loans to cover parts of the cost of attending USC (I also received scholarship money) and getting my engineering degree – and I consider it absolutely worth it. However, if I had majored in Postmodern Graffiti or Classical Alien Literature I'd be singing a different tune – and who knows? Maybe I'd be drowning in debt as I attempted to find a job which hired Alien Literature experts.

    My recent post How to Get Started Investing When You’re Hopelessly Clueless (Or Don’t Care!)

  • Ms. Lici /

    LMBO at the Everest comment. Honestly, if I had to take out student loans I dont know if I would have done it. I joined the military after HS becuase I couldnt afford to go to college. My lack of knowledge on the loan thing made me completely write it off. A little older with a little more knowledge I dont think loans are bad, but as you state you have to be able to follow through and pay them back. I know ppl who has student loans and no degree… or a degree from a school noone has ever heard of.
    If I were to do it all over again w/o the military I think I would have went to a community college for 2 yrs saved what I could then transferred to a University with the use of grants & scholarships then take out a loan for the rest.

  • URFinanceSimple /

    I had to take to take out student loans also unfortunately, my mother could not afford to save for higher education for me. Student loans definitely paid off for me.

  • Ms. Lici /

    Thats great it worked out for you. I heard so many horror stories. I didnt even apply to colleges while in HS, I knew I couldnt afford it even with scholarships. I completely dismissed the thought. I dont think I was ready to take college seriously anyhow.

  • With over 50% of last year’s grads unable to find jobs, and the average student has $25,000 in student loans; maybe college on credit is a disaster in the making.

  • Great statistic, but of you’re quoting averages. If you go by the average you might as well skip college all together. Once you dig deeper into the average statistics and find statistics that reflect the college graduates with your major, the area you will live and other location based factors you will find that college in some instances is worth it. Then if you dig a little deeper you will find that some degrees are worth pursing via cash and some are better to use leverage. In my instance,leverage was better than cash. I did my research.. Spent 4 years of college (out of state) landed a 45k job my junior year.. Graduated making 80k now I’m well into 6 figures. However, that’s just me.

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