Nobody likes to be in debt, and the thought of borrowing thousands of dollars to fund your college education can be a scary thought. The good news is, unbelievable as it may sound, there actually is a silver lining to student loan debt.
Student Loans Can Be “Good Debt”
Unlike borrowing money to buy a top end car, which depreciates in value, when you take a student loan you are actually investing in your education, which will boost your lifetime earning potential. This is one investment that is definitely worth it.
Paying Back Your Student Loans Helps You Build Your Credit History
Building a solid credit history is very important. It show lenders that you are a responsible borrower, which makes it easier for you to borrow money when you need to, for larger purchases. Responsible borrowers can also benefit from lower rates of interest. But how do you build your credit score as a student? One way to do this is by being meticulous with your loan payments.
Every time you make a timely loan payments, your credit score improves a little bit. Making every one of your loan payments on time will help you build a strong credit history slowly but surely.