Sometimes the hard part of getting through a college education isn’t the studying, research papers, and exams. It’s the money.
For students struggling to finance an advanced education, there are many education loans available that can help offset the expense. And the worry.
In order to secure education loans, a student must demonstrate financial need. There isn’t money enough to finance a full education for everybody so only the most deserving students get the financial assistance they need.
There is a bit of discipline required of the student receiving education loans. The need for the discipline might not be immediately evident but the value of spending the money wisely quickly becomes obvious.
Many college graduates, and current students, can tell tales of fellow students spending their education loans on new electronics equipment, clothes, entertainment, and other things not directly related to education itself only to find they don’t have the money to pay the tuition or buy the required books and study materials.
The sad outcome of squandering education loans this way is that the student often cannot find the money to pay for the education expenses and so must drop out due to financial reasons.
This is sad enough but the tragedy is compounded by the fact that, now out of school, the student must pay back those education loans, even though they didn’t fund the intended education.
And in a sort of catch-22 situation, the student who dropped out of college because of investing education loans unwisely doesn’t have the clout of a college degree to land a job that pays well. He or she must settle for a lower paying job and repay the education loans from a smaller pool of income much sooner than might have been expected.
Education loans are not free money, to be enjoyed in frivolous fashion. They are loans secured by legally binding contracts with strict repayment policies, including hefty fees and penalties for late payments.
There’s an awful lot of stuff to learn in college. Lots of the stuff is taught in classrooms but a lot of other stuff, lessons even as valuable as the classroom kind, are learned in private. Some of the hardest lessons to learn focus on money.