The Value of Student Loans

value of student loans

You sometimes hear people complain about student loans simply because they have to start paying them off when they finish school, but these same people are ignoring all of the positive attributes of these loans, all of the ways in which they make your life better. You do have to pay them off in the end, but that is simply how any loan is going to work, whether it is for a home, a car, or something else altogether. When you look at all of the different things for which you can borrow money, it is easy to see that student loan plans are some of the most valuable and beneficial that you will find anywhere.

Invest in Yourself

First of all, you are using them to invest in your own future, making it possible for you to earn more money. With nothing but a high school diploma, you will find that you lack the qualifications for many of the high paying jobs that are advertised.

Even if you technically have the skills to do them, many companies have stipulations when it comes to hiring that say that people must have a certain level of education in order to be considered. There is no real way to get around this, regardless of what you can do, so the college degree opens up new doors and pays for itself quickly.

The Right Time is Now

Another thing to consider is that the loans make it possible for you to get your degree sooner. College classes are not cheap, and it could take you quite a lot of time to save enough money to pay for the tuition. Even at an inexpensive school, you could be looking at $100,000 for a degree. Even if you put away most of what you made each month, you would have to save for years to get there.

By the time you had the money, the job market may have passed you by. Student loans allow you to go to school when it makes sense so that you can get into your chosen profession sooner. You can then use that higher salary to pay your loans off after you get a job, rather than trying to save up in advance, before you have the job.


Finally, it is very easy to combine your loans with other types of student aid. Perhaps you applied for some scholarships that were being given out by the school. Maybe you qualified for financial aid from the state based on your income level. Maybe you have a trust fund that can be used to cover part of the tuition costs. Integrating these payment options with your loans is simple, so it is not hard to get all of the money together and pay what you owe to the college or university.

Over to You

Did you take out a student loan to attend college? Do you believe it was the right decision?


    • Stephanie @ Six Figures Under

      Stephanie @ Six Figures Under 04/22/2014 9:15 a.m. #

      My husband and I made it through our undergrad without any debt. After a couple of years of working a "real" job, he felt like he should continue his education. He went to law school. After 4 years of school he got a JD/MBA and $130,000 of debt. Paying it off asap is our current project. And it's a big one!

      Even though he is currently making much less than before law school, we aren't bitter. We felt like going to school was the right thing for him to do at the time. We appreciate the education and experience. Hopefully the income will increase significantly as he builds up his practice!

      • Sicorra

        Sicorra 04/22/2014 10:36 a.m. #

        I know what it feels like to be in a lot of debt and I know just from reading your blog that you are taking huge steps to find ways to pay your current loans off. I'm sure that your husband's career will flourish and that it will all be well worth it one day soon.

    • Corina Ramos

      Corina Ramos 04/22/2014 9:17 a.m. #

      Hi Sicorra,

      I'm definitely headed into the student loan aspect of my life but I'm hoping Adrian and Marisa qualify for the scholarships they've applied for first. ;)

      Thanks for sharing this post with us! Talk to you soon girl!

      • Sicorra

        Sicorra 04/22/2014 10:19 a.m. #

        Hey Corina,

        Yes, I hope they qualify as well. That would be excellent :-)

        Good to see you back :-)

    • chelle

      chelle 04/25/2014 11:16 a.m. #

      I didn't have student loans, my Dad helped me through university. However my husband did and it totally plagued us for a long time. It was a huge damper on our beginnings in part because he stayed in school for so long. We had to work super hard and live without A LOT to pay off the loans and finally be in a comfortable spot.

      While we will not be able to pay for our children's entire education, we are saving to help them out so their burden will not be like ours was. That is not to say I do not want them to work and earn their way through but I totally plan to help them out as much as we can.

      • Sicorra

        Sicorra 04/25/2014 3:31 p.m. #

        That is excellent that you are able to put money aside to help your children out with their education. If you contribute and they are able to contribute it will save them a lot of grief in the future but they will still value their education because both you and they worked hard to be able to afford it.

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