Should I take a loan or not? If there is one loan that you can actually take in your life. It should be an education loan. But it comes with some conditions.
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| Should I Take an Education Loan |
Conditions Number 1
The loan that you take will not be attached to your parents. Your loan is your responsibility. Your loan is your problem. If you are able to pay it. Great! If you are not able to pay it, the loan authorities should come after you, not anyone else. The clear point was if I take this loan, I am the one responsible for paying it. And if I am not able to pay it, then no one comes after any of my family members. And that was something that was clear, and thankfully that was possible. So you will first and foremost ensure that the loan is not attached to anyone except you.Conditions Number 2
You will not take a loan just for the stamp of a degree. College is becoming more and more useless in this world. The importance of college is reducing by the day. Why? Because college does not ensure a job. College does not teach you anything that you use in your work. College is just the way for you to spend time with the right kind of people. College is that medium through which you spend time with people who elevate you. People who make you a better individual. Who introduces you to different world views? That is the purpose of college. And that means this is only possible if you go to a really good college. And that does not mean if you do not go to a good college, your life is wasted. No. That's not the point. The point is – if you are taking a loan, then you should go to a good college. Why? Because going to a good college will build your network. Your reputation will give you opportunities for financial freedom in terms of jobs or making it easier for you to raise funding for your startup, making it easier for you to have a great network. But if you are getting an admission to a mediocre college. You are better off not going to college. So take a loan only if the college you are going to is a good college.Conditions Number 3
When you take that loan, always remember you have to return that money back. You will get a moratorium period, which means that while you are studying, you do not have to pay your loan's EMI. But during this period, the loan is piling up to its interest amount. That is going to happen. So at the end of 3/4/5 years, whatever the duration of your college, when you get a job, your EMI will start. At that point, the loan amount will not be what you take; it would have increased to a higher amount. Because the interest amount would have been added to it. You have to pay that amount back. And that could be a significant amount, which means from day 1 itself you will have the pressure that you need a minimum salary job. Because it's like paying rent for your college. And the rent is the EMI for your college loan. This plays a lot on people's minds. It is not easy to deal with this pressure. Because when the placement season starts, when the job search starts, then the mind loses peace thinking that I need this minimum salary because I have a loan to pay. If you get a job outside of your hometown, then additional rent there and all the expenses of the city will have to be managed. So suddenly, the salary number is not about what salary you can get for your role; it becomes how much salary you need. It becomes your need, rather than what the job can offer. All of these things need to be borne in mind. So this you have to always remember. So these are the three things.
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