It is undeniable that many students could have lost the chance of getting higher education without borrowing a loan. Especially in student loans in Ireland comes first among other types of borrowing facility. This is because minimum eligibility criteria provide ease of borrowing.
Besides, Ireland is considered the home of one of the best universities, namely, Trinity College Dublin, where many undergraduate students visit to get a quality education.
However, staying in Dublin if your parents are running out of cash and unable to continue the higher study, we will suggest not giving up hope. Borrowing a student loan could be a great idea.
But before applying for such student loans in Ireland, make sure you have known everything. Here is mentioned some advantages and also disadvantages of student loan. Let’s take a look and then decide.
1. Increase affordability to get admission:
Even if you stay in Ireland, it is not necessary that you can easily travel to college. On the other hand, staying within the college boundary can save your transportation fee and tuition fees. Therefore, by applying for a student loan, one can easily afford the hostel fees and admission fees for every year. Besides, with a regular price rise when there is no intention of lowering the price, borrowing a student loan can help you complete higher education without facing any hindrance.
2. Determines journey from ordinary school to an extraordinary:
It is not uncommon to bring up the dream of becoming a foreign university graduate. Among other best education destinations, the name of Ireland also comes under the list because of the foundation of Trinity College. Many students from different countries used to enroll themselves to get admission in that college. Instead of taking payday loans to study in Ireland, it is better to opt for student loans because it completes the real need for money.
Moreover, it helps to get the scope of studying in your dream university. Student loans are planned in such a way so that even an overseas student can have adequate money to make all his expenses.
3. It can be used for several purposes:
While one opts for a student loan, it does not only mean that the fund is only designated for study. Apart from paying college fees, there is a lot more to spend on expenditure.
When you go for an overseas degree, then the amount of expense will be more. A student needs to arrange for a room to stay a particular amount of funds for cooking food, buy books, and even keep some liquid cash in hand.
To spend all these additional expenses, a student loan is way better than other types of loans. Sometimes, a student can carry on all these additional expenses with the help of a student loan without pressurizing his family for more funds.
4. Builds the credit score:
While credit score is an important factor in becoming eligible for a loan, regularly repaying the outstanding amount will help increase your credit score.
Although credit score is least considered during student loans, with growing age, your eligibility will be considered as per your credit score when you apply for other types of long-term loans. Therefore, timely repayment will increase the credit score.
1. The rate of interest can be high:
Although student loans have several benefits, the rate of interest applicable is comparatively higher than others. Apart from repaying the total borrowed amount, a student needs to repay the interest amount too. Even in Ireland, money lending companies used to charge 11%-15% interest on borrowing amount.
For such a higher rate of interest, it is better to avoid student loans because it is not certain that you will get a job just after completing the study. If you fail to repay due to such a high amount then, it will be painful.
2 .The possibilities of becoming a defaulter:
As discussed, due to such a high-interest rate, many students fail to repay the outstanding amount. He was Failing to repay leads to get the title of ‘Defaulter.’ Besides, applying for a student loan means starting life by opening the portion of the debt. When one visits the money lender’s office to borrow money, he can get any amount he required.
But it is a trap. Due to such humble behavior and ease of borrowing, everyone gets satisfied and applies for a huge loan, which may not be required. So, calculate properly before applying for a loan.
3. Ends up the possibility of setting other goals:
As the student loan is associated with a high interest rate during the repayment, a person has to pay extra money apart from the total borrowing amount. For this reason, the possibilities of setting up other financial goals are destroyed.