Are student loans worth it? This question is one that many people ask themselves, and for good reason. Student loans are a huge financial burden, especially if you don’t have a job after you graduate. In this blog post, we discuss the seven biggest reasons why student loans are not worth it. Keep reading to learn more!

Reason #1: The Interest Rates Are Ridiculously High

One of the biggest reasons student loans are not worth it is the high-interest rates. If you take out a loan from a private lender, the interest rate can be as high as 18%. You will be paying back that loan with interest for decades or even for the rest of your life.

Reason #2: The Payment Plans Are Unaffordable For Most People

Another reason why student loans are not worth it is because of the payment plans. If you take out a loan from a private lender, they often require that you pay back at least $100 per month until you pay off the loan. This can be unaffordable for some people, especially if they are already struggling to make ends meet.

Reason #3: You Probably Won’t Graduate With A Job

It’s no secret that the job market is tough right now. It’s even tougher for recent graduates, who often have to compete with experienced professionals for entry-level jobs. It is becoming more and more popular to drop out of college to find success in other ways, like through entrepreneurship.

On top of avoiding bad student loans that can trap you financially, dropping out of college can give you the freedom to explore other opportunities.

Reason #4: The Loans Are Difficult To Repay

It can be very difficult to repay student debt, especially if you don’t have a job after you graduate. If you cannot find a job that pays enough to cover your monthly payments, you will likely end up defaulting on your loan, which can ruin your credit score and make it difficult to borrow money for other things in the future.

Reason #5: You Are Paying For A Degree That Has Very Little Value In Today’s Economy

Back in the day, having a college degree meant something. It was a sign of intelligence and hard work. But today, a college degree doesn’t mean as much. Many employers are now hiring people with experience in the field rather than graduates with degrees in irrelevant subjects.

Reason # Six: The Student Loan Debt Is Becoming A National Crisis

Did you know that student loan debt is now a national crisis? According to a report by Forbes, student loan debt has surpassed credit card debt and auto loans in terms of the total amount owed. This problem will continue to get worse unless something is done about it.

Reason #7: You Often Can’t Refinance Your Student Loans

One of the worst things about student loans is that you often can’t refinance them. This means that if you have a high-interest rate, there’s no way to lower it without taking out another loan.

Are Student Loans Bad?

So, are student loans bad? In short, yes. Student loans can be a huge financial burden, and they often lead to debt that is difficult to repay. If you’re thinking about taking out a student loan, weigh the pros and cons carefully before you decide.

Some of the Effects of Bad Student Loans

Now that we’ve talked about some of the reasons why student loans are bad, let’s take a look at some of the effects.

  • Student loan debt can ruin your credit score and make it difficult to borrow money in the future.
  • You may be unable to find a job that pays enough to cover your monthly payments.
  • The student loan debt is becoming a national crisis.
  • Student loans can be difficult to repay.
  • You are often unable to refinance your student loans.

Other Financial Problems Student Loans Create

Whether you get federal student loans, a Stafford loan, or a private student loan, it can often create financial problems beyond the student loans themselves. If your student loan monthly payment is eating into your bank account, you won’t be able to do other things, which is called opportunity cost. Opportunity cost is what you lose out on when you make a decision. For example, if I buy a new car, then I can’t buy a house because my money is going towards the car instead of the down payment for a house.

If you take out student loans to create a huge financial burden, there are some very important things you might be missing out on:

  • Investing.
  • Buying a house.
  • Starting your own business.


Investing is a powerful way to build wealth. You can invest in real estate, stocks, bonds, and other things. The returns on the money you invest could be incredibly high, and you could see your money grow over time.

But if you’re paying off student loans, then you won’t have the extra money to invest in things like this. It means that you’ll be missing out on potential profits and wealth growth.

In the past years, investing has become easier than ever, thanks to companies like Acorns and Robinhood. These companies allow you to get started with investing with as little as $100.

If you don’t have any student loan debt, take advantage of these opportunities! It could be a great way to start building wealth if investments interest you.

If you have the focus and time to dig into investing, you can learn about stocks and some of the best times to invest.

But if you’re struggling to make your student loan payment, then it’s probably not the best time for you to start investing, a huge opportunity cost.

Buying a House

One of the biggest milestones in life is buying a house, which is seen as a sign of being an adult and becoming financially stable. But if you have student loans eating into your monthly budget, you might not be able to afford a house.

The real estate market is also incredibly expensive in many parts of the country. You’ll need a big down payment to get started with buying a house. If you have student loan debt, this might be impossible for you to do.

Not buying a house means that you’ll be stuck renting for much longer than someone without student loan repayment. You could also end up paying more for a rental than someone without any debt.

The longer you wait to buy a house, the more money you’ll end up spending on rent.

Starting Your Own Business

One of the best things about being an entrepreneur is you can start your own business, which is a great way to control your destiny and attain financial success. But if you have private or federal student loan debt from your college education, you might not have the money to start your own business. You’ll be missing out on a great opportunity.

Starting a business is an exciting time, and you can choose from a wide range of businesses. The new normal brought on by the global health pandemic has opened up many different opportunities, and it could be a great time to start a business.

Some new business ideas in 2022 could be:

  • Online learning for kids: Many parents are now looking for online learning options for kids, which could be a great way to start an in-demand business.
  • Virtual fitness classes: Virtual fitness classes have grown in popularity as gyms were forced to close due to the pandemic. If you’re passionate about fitness, this could be a great one to start!
  • Grocery delivery service: It is a great time to start a grocery delivery service. Many people don’t have the time or ability to go shopping, and they would love someone else to do it for them!

Student Loans Can Be Financially Dangerous

While college debt is common, they are not something to take lightly. They can be a source of financial stress and burden for many years or even decades after graduation. You could be looking at decades of monthly payment requirements, student loan refinancing, and juggling payments.

You don’t want student debt hanging over your head as you start your career or when you’re trying to buy a house. It’s best to avoid both private and federal loans at all costs, and often finding a different path can be the most exciting way to carve out a life for yourself.