Who needs student loans? Conventional wisdom says anybody who needs money for school! Simple question, simple answer.

But there are slightly different scenarios for needing the money from a student loan program to pay for school. Generally speaking, people who need a student loan are those who want to make an investment in themselves and their future, and have decided that it’s worth going into debt in order to have some financial payback and security farther down the road in his or her life.

Enroll in Higher Education

A major slice of the student loan applicant pie consists of people who don’t have the economic support to enroll in higher education on their own. There are certainly situations where a person might have better economic prospects by starting their vocation after high school, but most studies show that one is better off financially in the future if they obtain an associate or four-year college degree. If there is absolutely no money available for tuition from personal sources or non-loan sources, then a student loan could be the best way to get through a degree program.

Who Needs Student Loans

Another Scenarios for Needing Loan

Another major slice consists of a blend of prospective students who might have some cash to put towards tuition, but need to supplement it.

These are “hybrids,” in other words, those who have various sources of other income that only pay for a portion of their tuition and/or housing and other livings costs. These situations are as unique as the people who live them, but some examples are:

  • Students who have won scholarships;
  • Those who have applied for and received grant money;
  • Those enrolled in ROTC or some other military or municipal training program;
  • Students who have received gifts, earned work-study privileges or in the case of graduate programs qualified for an assistantship or a teaching position.

Once all these possibilities are exhausted, people look to student loans to shore up the difference.

Often people who need student loans feel they can get a better return on their personal investment if they plow through school full-time, instead of going part-time and working to pay part or all of their tuition and other expenses. Or, the demands of a program require time or concentration commitments that make working impossible.

Demands Besides school costs

The last general section of people who need student loans are those that have more immediate and important demands for their income besides school costs. These demands might include food, housing and medical insurance for the individual, or possibly those of family members.

Whichever category someone considering a student loan might fall under, the general rule of thumb is that they’re someone who has decided the risk of having to pay off the loan after their degree program is a smaller price to pay than having the benefits of immediate financial assistance to build a better foundation for life!

If you are wondering if a college loan is worth it? Than try this free Student Loan Return On Investment Calculator – https://www.paymystudentloans.com/student-loan-roi-calculator-2/