Judging by how a lot of students struggle with their finances in their academic pursuit, one of the options available in developing countries in tackling this issue, is the privilege of student loan. A privilege that allows student to pursue any academic degree without financial hindrance. We all know how expensive tuition fee and accommodation fee could be, how it could drain the life out of any student. Though there are other options of working while studying which is also something offered in developed countries.
At least with student loan, a student can focus of their studies without to source for funds. it is definitely a great privilege but then, it does comes with a cost. A student loan isn't scholarship that comes without excessive strings. It is just like every other loan, though the rate might be different but it is still attached. Which means the higher a student climb in their academic endeavours, the more student loan they take and more the interest they accumulate.
Despite the benefit attached to student loan, a lot of student end up buried in debt after graduation. They have to work years to pay off their students loan, which means abandoning whatever dreams or goals they have, just to ensure their loan is paid. It nearly feels like, they become laborers after graduation, with just one aim in mind; paying off their debt as fast as possible.
What if a student is offered an option; clearing off their outstanding debt but in return, you pay more taxes, which will I choose? Well I wouldn't know for sure because I have less experience on both options. The reason is quite simple, in my own country, the term student loan is not really prominent or something most banks are willing to do or something I'm not avare of. The only student loan I'm aware of is a loan offered by a bank named GTbank. But it doesn't offer the privileges attached to student loans.
For normal student loan, a student is offered the opportunity to pay their debt after they graduate, which is the main point of student loan but the loan I mentioned has a fixed term, no one is waiting for anyone to graduate before collecting back what is owed, so you see why I can't relate. What about taxes? it is not really something I'm a fan of, it i not as if detect it but I just don't see the impact of it in own country. The recent tax policy is eating through my savings like a termite. Here is something most people don't understand about tax is that, the more you earn, the more you pay.
Imagine paying off a debt just to find myself paying more taxes, that is lije choosing between two demons because both can put people in difficult situations. Which means the more tax I pay, the more the chances of having almost nothing left. I would prefer to choose another option if it is available.
This write-up was inspired by weekly featured content titled Student loans in hive learners community.
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