Financial myth: student loan is easily affordable

Knowledge is power! We often hear this statement. Since young, we listen to our parents to get good grades in school so that we can get a good degree and a good job. Education is viewed to have a positive correlation with the ability to find employment.

When we are thinking for better education and we realize the cost is not cheap. Student loan then become the choice. It is a sad fact that before one even steps into the society to start earning money, he / she has already gone into a bad debt. After graduation, will one get a good job with good pay? Most people get basic starting salary, hence, it is often daunting to pay the study loan for the initial few years when starting out. It is important to choose carefully the degree programme and evaluate the student loan amount and the probable income from the chosen career path. Else, the student loans will very quickly become a burden.

Hence, student loan is not that affordable as we always thought. For some courses, the loan amount can be as high as a vehicle loan. It will take 10 years before one can fully pay off the loan. 10 years of commitment! Hence, if you are a parent, consider education fund planning when the kids are young. Never burden your children with student loan. If you are a youngster soon going to the university, assess your skill and passion, go into the course that you really like and choose the course properly based on your aspired career path. Getting a student loan to study something that you do not like will only hurt you more.

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