Fuelling Aspirations With Loans, But Without the Headache

by : Ajeet Khurana

A student's first brush with the world of loans is when (s)he applies for higher education. In most cases, higher education degrees cost the earth. And there are only so many full scholarships to go around. A lot of students who secure partial scholarships still find themselves worrying about how they will pay the high tuition fees. This is apart from accommodation and the other miscellaneous expenses that arise when one lives away from one's family. At such times, the education loan emerges as a friend indeed. It provides cash-strapped students with the means to pay for their higher education dreams. The worries of "How will I afford it?" are eliminated at one go.

However, even if a student does manage to fuel his/her aspirations for higher education, the burden of the debt may lie heavy on his/her shoulders. Even if one does get a great job right after the completion of that education degree, paying off the debt would still be a struggle. As most of us are aware, the transition from student life to the world of adult responsibilities is not an easy one. This shift becomes even more difficult when there is a burden of debt involved. The expenses involved in moving out on one's own, and being completely self-reliant can be a strain. However, the aim should be to not default on any of the payments.

As one moves into the world of adult responsibilities, one begins to think about adding to one's possessions. One might consider making major investments. While many young people avail of the various investment schemes that proliferate the markets, some go about buying that first house. No matter how well-settled one is, buying a house involves a lot of money. Thus, most people who are out on a house purchasing journey decide to look for a home loan. A trip to the bank and a collecting of all one's credit and financial reports may be all that one needs to avail of a loan.

Similarly, many young people choose to buy their first car right after graduating. These days, it is difficult to manage without a car of one's own. The need for speed has transformed from an option into a necessity. Thus, trying to secure a car loan has become a common feature. People look for the cheapest deals in the car loan market. A few weeks later they are driving around in their own cars. The sense of freedom that can give is mind-boggling.

Of course, personal loans are not all that are available in the loan markets. Many young entrepreneurs choose to begin their million dollar enterprises with a business loan. Nowadays, business loans can be found very easily. If one has a graduation degree in hand, getting that start-up loan should be a cinch. However, being a new entrant, the new graduate will have to convince the lender of his/her focus and clarity of vision. Banks are ever ready to finance new efforts and young entrepreneurs. One just has to convince them of one's vision. The current boom in personal finance is a great boon for young people.