Why not take a student loan?
A study loan is an opportunity to pay for education at accredited Latvian and foreign higher education institutions, colleges and licensed educational institutions – it is intended to cover tuition fees.
This service is available to both full-time and part-time students
The credit can cover up to 100% of the tuition fee, but it does not generate additional income for the student’s own daily expenses – student loans are provided for this purpose if necessary. The student loan must be repaid one year after graduation (the repayment term may vary depending on the bank that issued the student loan), but if the studies are terminated earlier, the repayment period begins sooner.
Only credit interest is paid during the studies. A student loan can be obtained without a guarantor if the student has regular monthly income, but in the absence of one, a parent or any other person with a stable monthly income can become a guarantor.
While student loan sounds like a good way to get paid education that you can’t pay for yourself, there are also downsides to using a loan, which you should definitely be aware of before taking a loan. When using this service, it should be remembered that a loan is a loan that will definitely have to be repaid by the lending institution in the near or long term.
First, taking any credit, including study credit, it begins to shape a person’s credit history
If it is repaid on time and without delay, no problem arises, but in the event of late payment or non-payment at regular intervals, the bank may impose sanctions through the courts. Even if the loan is eventually repaid, it still has an indelible effect on a person’s credit history – it may happen that if a person subsequently wants to take out a loan for a car or apartment, the bank may refuse it due to a damaged credit history.
A student loan is based on the idea that after graduation you do not have to repay it for another year, but within that time period, the person who has taken the loan must find work to earn an income before the loan can be repaid.
Theoretically it is possible, but in reality, it is not always that ideal
The labor market is changing – the fact that the chosen study program is widespread in job offers when you start your studies does not necessarily mean that it will continue after graduation. It is possible that the student will not be able to find work in his / her profession during the year. The study loan does not provide for such a variant.
Be aware that in such a situation the loan will still have to be repaid even if the job is not found. For the most part, this is a case that forces graduates to take up unwanted jobs simply because there are no other options, since the loan repayment period has begun, with interest and the principal of the loan itself. In the worst case, when a job is not found, debts for late payment started, and eventually the court is involved, whose services, of course, are to be paid by the person who took the credit. As a result, a person suffers a much greater loss than if the student loan had not been taken at all.
Students who use the student loan service and are well aware that it will have to be repaid early start to accumulate money during their studies.
This, of course, virtually eliminates the possibility of later loan repayment problems, but the timely accumulation of money affects one’s personal life. Studios are the time for various course events, parties, and during this time you can meet your beloved, with whom, of course, you need to spend time, go to the cinema, romantic dinner. Student loan has a negative impact on the social life of the study time, because saving money for loan repayment means that the person mostly has to give up both activities and dating. If the student’s place of birth is far from the city of study, the number of visits from parents and friends also decreases.
It is not possible to enjoy social life to the full during both the time of saving money and its repayment
Man avoids many things – avoiding spending money – going to the cinema, meeting friends, sitting in a cafe, traveling abroad. You also have to buy new clothes. What’s more, if you don’t want to delay paying your student loan, you may be forced to avoid paying another bill (telephone, apartment), which of course you have to pay. This way you can get into big debts, which can make you desperate to take out a quick loan, sell some of your possessions to pay off your debts.
Student credit also affects health – not only does stress increase when trying to pay off a loan, but people can also change their priorities – paying off a loan is more important than health. Annual medical examinations are postponed, and in the event of illness, a person may choose to try the treatment himself or herself using medication without the doctor’s consent. Of course, coughing does not require you to run to the doctor right away, but only a professional and knowledgeable person can tell if it is a common cough or the first signs of pulmonary inflammation.
Repayment of a student loan, though not always, can cause many problems that eventually make one wonder whether it was worth studying at all. What is more, if the studies were abandoned incompletely, the student loan taken would have to be repaid, in which case the repayment period would normally start 3 or 4 months after leaving the studies. Studies may not be completed because they cannot be combined with work that offers the student appropriate pay, working hours, future opportunities and is enjoyable. In this case, due to the wages and salaries received for the work, the repayment may not develop into debt mountains. However, studies are often abandoned because the student understands that the chosen field is not for him or her, or has been mistaken. In this case too, the student loan repayment must start after 3 or 4 months and the bank is not interested in the reason for leaving the studies.
In order to avoid the problems caused by the student loan
It is necessary to carefully consider whether it is really necessary. It is often possible to combine studies with part-time work, so the student can pay for the studies himself. Most universities also have budget places, which can be used to earn a place for students every year or semester. High school graduates often feel that it is imperative to start college or college immediately after graduation, but there is also the opportunity to work a year or so to earn the money they need. Student loan carries a lot of responsibility, so it is important to consider whether it is really necessary, because there is always a way to avoid it – just think carefully and consider all the options.