Will Getting a Student Loan Lead to a Pattern of Debt?

There are many parents and children that worry a lot about getting a student loan. There is reason to have concerns as they do last a long time and many people do find that paying them off can be difficult. However, some people go even further with their worries in thinking that it can lead to a pattern of debt. It is worth considering whether this is likely or not.

What is a pattern of debt?

A pattern of debt is when one loan leads to another. This could be because once we have borrowed money, we no longer have a stigma associated with it as we have tried it. Therefore, we are not so worried about trying it again and we will get out loans so that we can treat ourselves to all sorts of things. We might also find it difficult to cope when we are making repayments on a loan and that could lead to us borrowing more money so that we can manage the loan repayments and our other payments.

Can a loan lead to this?

It is possible that a loan could lead to a pattern of debt. Some people do seem to have multiple loans and keep borrowing and always seem to have debt. It could be that one debt has led to another. However, there are people who have very few debts. They borrow a little but manage their repayments and do not let having one debt force them to get more. Ideally everyone should very carefully manage their debt. They should only be taking on loans that they can afford to repay and for good reason. Borrowing just to buy some treats is not a good reason but if they are borrowing to better themselves, like getting a student loan or for emergencies then these are better reasons.  It is always worth therefore thinking hard about the reason that you are taking out a loan and whether it is a good one. It is not always that easy to work out but if you discuss it with someone else, this could help you.

Alternatively, you can think that loans might help us to avoid debt in the future. It might be that we felt stressed while we were in debt and therefore, we want to avoid that happening again. It might also mean that we have to learn to carefully budget our money, so that we can afford the loan repayments and this can lead to good habits in the future if we keep up with it. It may also allow them to have a good understanding of the difference between good and bad debt and so they will only borrow in the future if they are taking on good debt rather than bad. This means that for some people having a loan can lead to the opposite and they might avoid debt in the future rather than take more on.

Will a student loan lead to this?

The main worries with a student loan is that because they are taken out at such a young age, they can have a big influence on the student. However, as explained above the influence could be a good or bad one. Whether the having the debt is seen as a learning experience and the experience helps the graduates to learn to budget better or whether they see the advantages in debt and decide to get lots more, regardless of their purpose, will depend on the individual.

It Is partly the responsibility of the parent to do their best to teach their children about good and bad debt and the importance of making repayments on time. If they are responsible then their experience of debt should be a positive one and they should learn from it. It can be hard for parents to talk to their teenagers about this sort of thing as teenagers do not always want to listen. Therefore talking about it from when the children are young could be a better tactic if it is not already too late.

If the student themselves is worried about the debt then they will need to make sure that they get a good job after they graduate so that they will be able to repay the debt more easily. If they earn enough they will be able to easily make the repayments and get the debt repaid. By making sure that they live within their means, so that there is always enough money to cover the debt repayment, this will help. It could even be worth thinking carefully before college, to make sure that the career that you are studying towards will give you an income that will allow you to be able to get a good level of pay and therefore manage those repayments.

How do I Pick the Best Lender?

Picking a good lender can be quite a tricky business. There are so many of them available that it can be daunting and knowing what factors to look out for in a good lender can also be hard. Especially when you’re in a rush and need to get cash now. We will all have our own reasons for picking certain lenders but it is worth looking for features in them that you feel strongly about.


Cost is always an important factor when we are borrowing money. We want to make sure that we are not paying more than necessary for the loan that we are taking out. It is important though, that we are comparing prices properly. It can be tempting to just look at the interest rate of the loan and compare that, but this is not always a good way. The lender may charge fees alongside the interest and so you need to account for those as well. Also, the amount of interest you pay in full will depend on how many interest payments you make. This will be determined by the lender and so you will need to check this. Of course, you may prefer more repayments because they will be smaller and easier to manage.

Customer service

You may like to feel that you are with a lender that will treat you really well. This can be especially important if you feel that you will need to get in touch with them regularly. It may be hard to know but you can think about your relationships with previous lenders or your current bank and decide whether you think that it is likely. If you do want to check then it is wise to get in touch with the customer service department in the way that you would normally expect to once you have a loan. Then see how quickly they respond and whether they seem polite and helpful. This should give you an indication of what to expect if you do decide to borrow from them.


There are many people that worry about how trustworthy a lender is and only want to borrow form those that they deem they can trust. Building up trust from potential customers is something that banks try hard to do but you need to be aware of things you need to look out for. If you have used a lender in the past then you may want to use them again if you got on well with them. This can be a good reason for choosing them, but do make sure that you compare them to others just in case there are better options available for you. If banks advertise a lot then we know their name and therefore think that we can trust them. However, just because they advertise it does not follow that they are trustworthy. You may also see reviews and feel that the ones that score highly will be the best. However, many review websites earn commission on leads based on who they recommend. This means that they might be more likely to recommend a lender that will pay then more money rather than one that they genuinely thing is the best. There is also the chance that reviews could be biased in some other way too. It can therefore be better to ask people that you know for their opinions. They will be able to let you know whether they can recommend anyone and discuss their personal experiences with you. You may also like to take a look at their websites and get a feel of what they are like through those.

Type of banking (online, branch etc)

It is important to think of what type of banking you want to do. Some people would rather go into a branch and just deal face to face. Others may not mind using the telephone or e-mail and some may just prefer to bank online. It is good to think about which you prefer because you will then be able to choose one based on this. Some may have all options available but some will not.

These are just a few features that you might like to think about. It is really important to think about what you think is the most important to you and it could be one of these or something completely different. Consider other factors as well, just in case some are very close on the factor that you are most concerned about. It is worth spending the time thinking about this and then doing the research. This will enable you to be get together a list of criteria and then be able to work through your options seeing which is the most suitable. Hopefully you will then end up picking the lender that will offer you the best value for money and you should be happy with the service that they provide.

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