Student loans often get a bad rap in certain circles because of students who’ve ended up with huge debt long after university. This is also the main reason why some students question whether it’s really worth it to take out a student loan in Barbados. The truth is that student loans can be good or bad depending on a host of reasons like who you borrow from, what you plan to study, and the total amount that you will be borrowing.
If you’re contemplating taking out a student loan to finance your education, here are 3 factors that can make it worth it for you.
See It As An Investment
Instead of seeing a student loan as huge debt, see it as an investment in your future, or an investment in yourself that will pay dividends. Investments can be either good or bad, and in this case, the pendulum can swing either way unless you approach taking out a student loan in the following way.
- Borrow only what you can reasonably afford to pay back with the income you expect to make in your chosen career. (Use our handy loan calculator to calculate your payments)
- Take out a student loan only if you have a plan for your education and know the prospects of becoming gainfully employed in your chosen field after graduation.
- Borrow only WHEN you need to.
Once you have checked these boxes a student loan would be a good investment and therefore worth it.
Make Sure It’s Affordable
Student loans are worth it when they are affordable and offer attractive payment terms. Do your research to find a student loan that:
- Has a low interest rate.
- Low fees.
- Offers a grace period after you complete your studies.
- (Bonus!) Accrues no interest until after you complete your studies.
- Has no penalties for early repayment.
- Offers help in the event that you run into financial difficulties at some point down the road.
This kind of student loan will make it a lot easier for you to repay and in turn ensure that it stays a good investment.
Use It To Increase Your Earning Potential
Before you take out a student loan, make sure that what you plan to study is going to increase your earning potential. It makes no sense earning a diploma/degree/master’s etc if it’s not going to make you more marketable and help you make more money in the long run. This goes back to the first point of a student loan being a good or bad investment. No one invests in something to make less money or the same amount of money.
If you can approach student loans as an investment, choose an affordable student loan, and put it to good use to help yourself get further in your career, then it most definitely will be worth it.
The Student Revolving Loan Fund offers the most affordable student loans in Barbados that are designed to be student-friendly and easy to repay. Learn more about our loans here.