What Are the Risks of Taking Out an Education Loan?

Debt Burden Accumulating substantial debt that may take years or even decades to repay.

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Interest Accumulation Interest can significantly increase the total repayment amount, especially with long-term loans.

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Variable Interest Rates Loans with variable rates can become more expensive if interest rates rise.

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Repayment Difficulty Challenges in securing a job after graduation or earning enough to make payments can lead to financial stress.

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Impact on Credit Score Late or missed payments can damage your credit score, affecting future borrowing ability.

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Limited Financial Flexibility Monthly loan payments can restrict your ability to save, invest, or make significant purchases.

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Default Consequences Defaulting on a loan can lead to severe penalties, including wage garnishment, loss of tax refunds, and legal action.

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