Is it better for student to take a loan or to save money Case Study

Is it better for student to take a loan or to save money - Case Study Example Tuition fee takes the greater share of the loan before other expenses such as books, housing and this is a huge burned to the student. In some cases, the loan increases when the student has to repay with interest. This tends to be cumbersome for any student since it accumulates to the extent that it becomes difficult repaying. Economists argue that student’s loans should be interest free and subsidized to facilitate recovery (Christie 2015). Secondly, repayment of student loans can last for many decades, and it becomes a burden to the student (Shen 2010). It ties a student in a debt for a longer period hence can miss many opportunities that come to those who do not have debts. Economists argue that it makes it hard for students to build up an emergency savings account, and they cannot save money for retirement (Christie 2015). This is mostly in cases when a student has to pay the loan for a longer period of 15-25 years. Students who save do not have such burdens and are relieved. Thirdly, taking a loan can run a student’s credit history (Shen 2010). Students who default to pay their loans stand higher chances of blacklisting hence unable to get employment or borrow money from the financial institutions. Similarly, inability to pay the loan within the stipulated time harms the students because it affects the credit history making it prolongs the expected duration of clearance. Thoma (2015), an economist argues that student should not take loan they are unable to pay because it puts them into unintended debt. Additionally, student loans must be repaid with or without graduating (Shen 2010). This is very dangerous to students who do not graduate and lacks job opportunities. It forces them to look for the money elsewhere, hence putting pressure on them. Thoma (2015) notes that it becomes hard for people who do not have a stable income or earning less to repay such