What Are the Risks of Taking Out an Education Loan?

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

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

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

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

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

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

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