Infographic | 1:32 min read

The Pros and Cons of Student Loans

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It is very important that students understand not only the pros, but also the cons of obtaining student loans.

It is no secret that Americans are increasingly burdened by student loan debt. It is imperative for students to understand the responsibility they are undertaking when accepting student loans. If the responsibility of paying off student loans is not taken seriously, increased financial difficulties are imminent. The penalties for defaulting on loan payments include added fees, added interest, and wage garnishment.

What are the Pros?

What are the Cons?

  • Taking out a student loan means you are starting your adult life with debt.
  • Student loan debt can get in the way of other financial and lifestyle goals.
  • The penalties for defaulting on some loan payments include added fees, added interest and wage garnishment.
An infographic about the pros and cons of student loans

Certainly, student loans can be a blessing for many people, as not everyone has the luxury to afford college. Be it lifting people out of poverty, or helping struggling Americans make ends meet, a source of credit for those unable can have immeasurable benefits. It also is a chance for students to start laying the foundation of their credit history by staying on top of their payments. However, it is important for students and families know the risk and burden they are taking on.

When an individual takes out a student loan, they are essentially betting that they will come out of their college career with the human capital to repay their loan in principle, plus interest. But an education that allows a student to have a fulfilling career and life is worth the financial stress taking out student loans incurs.


The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.