Merits & De-Merits of Student’s Loans

According to (bestassignmentwriter, 2022), students encounter many challenges in student’s life. One of the biggest challenges they experience is a lack of money. Some students cannot afford to go to college. Education is mandatory in every situation. It plays a main role in abolishing poverty. Loans are the best way to get out of such a situation. Many students take a loan to seek help in academics. Sometimes, they face many issues in writing. They can get help from Essay Writing Services. The professionals can help the students in this regard.

Some students want to ensure the accuracy of their work. They have to pay for the services that they are taking the help. The students can contact the Proofreading services to proofread their work. Therefore, the loan is essential for them to seek help in academics. But, there are many disadvantages associated with advantages simultaneously. According to (Saez & Zucman, 2019), they are as follows.

Merits of Student’s Loan:

The merits of student’s loan are the following. 

  • The students can afford college:

Many students are unable to afford college. According to research, the average cost of tuition fees and other stuff is between $20,770 and $46,950. Hence, it is clear that the tuition fee is quite heavy for those students whose parents cannot afford it. Hence, the student loan is quite beneficial for them. The students can get college admission. It helps them to pursue their education which is a key to abolishing poverty.

A college education is mainly expensive for many Americans. Thus, they cannot able to afford it without the help of a student loan. The loans allow them to continue with their education which they need the most. rty. Loans are the best way to get out of such a situation. Many students take a loan to seek help in academics. Sometimes, they face many issues in writing. They can get help from Essay Writing Service. The professionals can help the students in this regard.

  • They can study at their dream institutes:

The goal of many students does not include education only. They love to set the targets to win the degree at their dream institutes. The institutes are their dream for them because they are not able to afford them. Many universities are out of the range of many well-off families. Therefore, they opt for student’s loan to get admission to their dream destinations.

In this way, a student’s loan is beneficial to fulfill the dream of the students. Those students can easily pay the loan back once they get their desired job after their degree. It fulfills the dream of the students to learn at their desired institutes.

  • The students can use student’s loan beside tuition expenses:

Many students do not take the loan for their tuition fees. It is helpful in a wide variety of ways. Sometimes, the students can afford the tuition fee of the college. But, they are not able to fulfill the expenses such as transport, home rent, refreshments, etc. Not all the students live in their cities. They tend to commute to other cities in the urge of good institutes.

Thus, those students can take a student loan to fulfill their other expenses which are the necessities of their life. It helps to abolish all the problems of the students.

  • It helps to build credit:

The student loan is helpful for the students to build their credit scores. There are many students which do not pay bills thus no credit is associated with their names. Students’ loan helps them to build their credit history. Good credit history is beneficial for them throughout their lives. In this way, they can easily apply for apartments as well as credit cards ahead. Apart from it, it is necessary to make sure the use of loans wisely.

De-Merits of Students Loan:

The de-merits of taking loan includes the following.

  • It’s expensive:

When the students take the loan, they do not only return the amount they took. They have to pay back the interest as well. The interest range is between 4.45-7% for the federal. It is 11-15% applicable for private. Thus, the students must manage college fees without taking the student loan. Apart from it, it is also supreme for the students to apply for federal loans first. This preference will help in saving money.

  • It increases debit:

It is unhealthy for the students to start their life with debit. It is admirable that the students will pay the loan back once they will complete their degree. On the other hand, the students find it difficult to pay back the loan because the first few years are very tough. There are millions of graduates who do not get good jobs at the start. Thus, it is fascinating for them to hardly make both ends meet

  • The students cannot fulfill life goals:

The average payback of a student’s loan in 2018 was $351. With time, it has increased to a great extent. The same money the students can use to achieve their goals. They can buy a new apartment, finance a wedding, or invest to achieve long-term goals. Therefore, it becomes difficult for the students to fulfill their life goals before the clearance of the debit.

The students have to make an extra effort to earn money to fulfill their goals and to pay the debt back.

  • It creates issues if you cannot pay:

Many students are unable to pay the debt back. The reason behind it involves unemployment. It further increases debit if the students are unable to pay the loan back.


Hence, there are many advantages as well as disadvantages of loans. It is necessary to use the loan wisely to avoid any kind of inconvenience. The students should try not to take student loans if they can manage the expenses hardly.

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