Students may get loans for their schooling and enjoy the benefits they contribute to ensure their studies are completed as scheduled. Nevertheless, there are down sides to this arrangement that they may find unpalatable in the long run.
Getting such loans are regularly easy and students most times don't even care to go into details as to what is complicated in the repayment. They later study that their insight of the whole container is not exactly what it is. Some study they had rushed into getting the loan without first getting a clear photo of the terms of repayment. They surely have to meet the terms as ignorance is not an excuse under the law.
Students' Loan - The Downside Of It
One of the downsides is that distinct factors are thought about before one could entrance it. The wage level of the parents of the student seeking the loan may be considered. Past financial records may also be considered. Whereby these are not good enough, it may influence the someone seeking the assistance.
In addition, the reimbursement burden is much: the borrower is made to pay up to half of his monthly take home wage thereby production his available at the end of each month very small. This invariably affects his purchasing power.
One other problem the borrower encounters is lack of consideration for him should he be befallen by a natural disaster or when he becomes disabled. He is made to pay back his loan irrespective of what has happened to him. The debt cannot be expensed off in the bankruptcy process as obtains with credit card balances and mortgages.
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