Graduate Student Loans – Harmful or Beneficial?


In this current recessed economy, graduate student loans are an ever increasing necessity. The fact that they are low interest and payment is typically deferred until after graduation, leading students to believe that they are beneficial and easily paid back. And for many, that is the case. However, especially for those who continue on to graduate school, the student loan debt accrued by graduation can be astronomical. If you consider that the typical undergraduate classes last four years, and graduate school can last several years, depending on the course of study, you can see how weighed down with debt a student can potentially be upon graduation.

Imagine graduating college and embarking upon a new life in your chosen field. It’s an exciting time; a culmination of a life-long dream. But from your first step, tremendous student loan debt that will take years to repay is hanging over your head. When you add marriage, a family, your first new home, and other happy life circumstances, and that debt is joined by others, it can be overwhelming.

According the The Washington Post, student loan debt is harming the slowly recovering housing market. Says David H. Stevens, chief executive of the Mortgage Bankers Association, “Student debt trumps all other consumer debt. It’s going to have an extraordinary dampening effect on young peoples’ ability to borrow for a home, and that’s going to impact the housing market and the economy at large.” As reported by Time, it seems that student loans are not only harming those who have them, but may be dragging down the economy as a whole. If students are spending the majority of their money on loans, they have less to spend on consumer purchasing.

For those who did not graduate, or cannot find work in their chosen profession, student loans can be a heavy weight to bear. However, for the students who have graduated and are fortunate enough to work in their field of study, these loans may be well worth it. It is important to weigh all the pros and cons, and make an informed decision regarding student loans.

The Benedictine University at Springfield, in Illinois, has recently released news that they will be offering a new program to combat the dire effects of student loans. The “Benedictine Promise,” for eligible first-time freshman entering classes in the fall of this year, vows to help repay student loans for up to five years if the pupil is unable to pay. This seems to be an excellent program that more colleges will hopefully adopt in the future. While it may be comforting to know that help is out there if needed, the student is still ultimately responsible for fulfilling the commitment to the student loan debt.

For college bound students who cannot afford tuition, and do not qualify for government grants, graduate student loans may be the only way to go. Are student loans a smart decision, or a disaster waiting to happen? What do you think?

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