5 Myths About Student Loans
January 3rd, 2019 by Felicity Bradstock

Exploring myths around Student Loans

Most students hear the myths about student loans before even attending college. Others simply don’t understand whether a student loan is right for them. This article will debunk some of the major myths surrounding student loans and help students choose the path that’s right for them. 

If you don’t have the family finances, you can’t attend college.

Although universities in the US can be very expensive, they are not only for the rich. There are several scholarships you can apply for at every college and university. You can also apply for a student loan to support your study finances. The most important thing to focus on is grades and personal development. Think about getting excellent test scores and building your extra-curricular or voluntary experience to make your application stand out. 

Student loans negatively affect your credit score.

Okay, if you don’t make your loan repayments then this is true. But managing a student loan well can be a great way to boost your credit score. By making regular repayments, you’re positively impacting your credit. This means it can make it easier to take out a credit card or another loan in the future. 

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You will forever be in debt.

You will be repaying a lot of money, probably over a long time. However, graduates are earning an average of $17,500 a year more than non-graduates, making the cost of college worth-while. No one wants to think about paying back a debt, but following this system could help you become more employable and increase your income in the long-run.  

Interest on student loan repayment never changes.

Despite signing a contract when you took out a student loan, the amount of interest charged can still vary throughout the repayment. Be careful when applying for a loan that you understand all the small print. This includes how and when to repay the loan, as well as the interest due. The amount of interest owed can vary year to year, so check in the initial terms what you’re agreeing to. Make sure you have an idea of how much you’ll be repaying once you graduate to prepare for this. 

Forget your loan until you graduate.

Your loan shouldn’t be the first thing you’re thinking about when you wake up. However, it’s important to acknowledge how you’re getting your money and use it wisely. Interest is mounting from the minute you take out your loan. So, unfortunately, you’re building up debt the whole time you’re studying. If you have the ability, you can start repaying your loan while still studying. If you don’t have enough to do this, consider starting a savings account to put aside whatever money you do have for when you gradate. This will help alleviate the pressure of repayment. 

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  1. 程旸 says:

    Hello, I am a senior high school student from Hunan, China. I want to apply for hotel management of Tailai University in Malaysia. I yearn for and like hotel management very much. I hope to be engaged in this industry in the future, but I don’t have enough funds. I hope I can get your help. I will pay it back in time when my studies are successful. Now I am preparing for the application materials. There are no big problems in my grades. I am also preparing for the IELTS test. I look forward to receiving an answer as soon as possible. Thank you.

    • Al Clunnie says:


      Unfortunately, our loan programs are for international students from anywhere in the world studying in the United States (and now some schools in Canada), or for US students studying abroad. We do not currently have a program for international students studying elsewhere in the world, even with a US co-signer.

      If you would like more information about international student loans for studying in the US please let me know.

      For information and listings of scholarships available around the world, please visit: https://www.InternationalScholarships.com

      Be sure to receive the free International Student Newsletter — sign up at:

  2. […] Interested in finding out about some common myths regarding international student loans? […]

  3. Mahad Rizwan says:

    Can an undergraduate student take a loan at the start of his program? As of now,I couldn’t find any student loan being offered at the start of the program.Can you guys please help?

  4. Katy says:

    It is a good opportunity for the students but in my opinion that not good to take loan in any organization or bank but only the other hand it’s an important for continue the better career in future.

    • Al C says:

      It does depend on each person’s situation, but in many cases getting a loan is the only way to find enough funding for international study in the USA.

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