Student Loan: Is It a Holy Grail or a Trap?

When it comes to graduating school and deciding whether to go to college or not, thousands of young people across the country are facing the same dilemma – to take out a student loan or not.

Student loans have been around for a while. Given the high cost of education, such loans have always been considered nearly the only way for most families to afford a college education. But, what was meant to help people cope with this major expense often turned out to grow into a devastating crisis for young people and their families.

So are student loans a good opportunity or a cruel trap? Let’s figure it out!

Benefit #1: It Allows You to Afford College

Colleges are expensive. According to nationwide stats, over 55% of students can’t afford to pay college tuition on their own, which brings us to the first and the main perk of student loans – it makes college education affordable for you.

There is no secret that students are facing plenty of different academic issues. Even with the help of a reliable essay writing service or an expert who can rewrite an essay, they still have to spend nearly all of their time studying, attending lectures, and preparing for exams, which leaves them with literally no time left for getting a job and making money for a living. If you look at the problem from this perspective, it becomes clear that taking out a loan is basically the only way for the majority of young people to pay for their education.

Drawback #1: Loans Can Get Very Expensive

When you take out a student loan, you get a chance to pay for your education right now and forget about the financial struggle for a while. But, as you probably know, the longer you owe money to the bank, the more expensive it can get.

Eventually, when you get to the point when you have to pay it back, the interest of 4.45-15% (depending on the type of loan) will already make up a large sum. So, as a result, you will pay much more than your college actually cost you.

Benefit #2: Loans Can Cover Things Other Than Tuition

Though tuition fees are probably the largest expense item students will face in college, there will also be plenty of other expenses. This can include books, room and board, food, and closing. Even hiring a tutor will require you to have some money for it. This can cause additional financial stress. But, student loans can help you cope with that too.

Typically, student loans come in larger sums than needed to pay tuition. That is, students always have some money left to cover other, smaller expenses.

Drawback #2: It Makes You Start Out Life With a Hefty Debt

Though borrowing money to pay for your education sounds like a pretty good solution at first, it almost never seems to be such a good idea when you eventually graduate. The truth is that students who take loans graduate with a hefty debt on their shoulders. Needless to say that starting out your life owing lots of money can feel extremely stressful.

Benefit #3: Loans Can Help You Get Into Your Dream School

What is the biggest reason why students decide to go to an okay school rather than to their dream school? In some cases, this tough decision is dictated by a student’s insufficient GPA. But, on most occasions, it is the price.

There is no secret that good, prestigious colleges cost much more than okay schools. Therefore, one more benefit of taking a student loan is that it can mean the difference between going to your dream college or settling for less.

Drawback #3: It Can Mean Putting Your Life Aside

We’ve already mentioned how devastating and stressful it can feel to graduate with a huge debt. But that’s not the only problem that is there. In fact, stepping into your life with debt can also mean putting your life on pause until the time you pay it off.

By saying this, we mean that you will have to put off other life goals. Being pressured by a hefty debt, young adults often hold themselves back from pursuing other desires such as buying a house or car, traveling, and living their lives to the fullest. So, this is one more disadvantage you should be prepared for when taking out a loan.

Benefit #4: It Can Help Build a Perfect Credit Score

Finally, one last benefit of student loans is that they can actually help you build a good credit score. Of course, if you handle your payments timely and responsibly.

Eventually, a better credit score will let you get a loan to buy a house, car, start your business, or do whatever else you want. So, this is another perk to keep in mind.

Drawback #4: It Can Also Destroy Your Credit Score

Just like student loans can help improve your credit scores, they can also destroy them. So, the last disadvantage students must keep in mind is that if they are irresponsible with their loans, it can cause lots of damage to their credit stories. And this will have a huge impact on their future lives.


As you see, student loans have both positive and negative sides. Based on everything we have mentioned, it is impossible to say for sure whether it is a holy grail or a trap for students. In reality, it all depends on how you approach it.

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