THE PROS OF STUDENT LOAN DEBT:

• Student loans help students who can’t afford high cost of tuition to fund their dream school
• It gives an opportunity to have a better college experience as students focus on education without the worry of working long hours to pay tuition.
• Students who can leverage repayment in timely manner build their credit score, an important factor in many purchases.
• Student loan has lower interest rate compared to other financing options.
• It reduces overall country’s college dropout rate and enhance academic performance.

THE CONS OFSTUDENT LOAN DEBT:

• Student loan create a post-college debt which might be a risk of financial weakness
• Student’s ability to make large purchase can be limited, depending on debt-to-income ratio
• Student loan is associated with some penalties such as high Interest rate, which could affect credit score.
• Repayment of student’s loan is important, even when students don’t graduate
• Interest could capitalize if students don’t make payment quickly.

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