When are student loans worth it?
When the expected boost to your lifetime earnings comfortably exceeds the total cost of the loan, including interest. A degree that opens a higher-paying field, taken on with a loan you can realistically repay, is closer to 'good debt': borrowing that builds an asset, in this case your earning power.
When do they become a trap?
When the loan is large relative to the income the degree actually produces. Borrowing heavily for a path that pays modestly means years of payments eating into a paycheck that the degree barely raised. The danger isn't the degree: it's the mismatch between cost and payoff.
What should I check before borrowing?
Look up realistic starting salaries for the field, total cost including interest, and what the monthly payment will be against that expected income. Borrow what the outcome can support, prefer lower-cost options, and treat the decision like the investment it is.
Questions
Frequently asked
Are student loans worth it?
It depends on the loan size versus the earnings the degree produces. A manageable loan for a degree that clearly raises your income can pay off; a large loan for one that doesn't is risky. Run the numbers before borrowing.
Is a student loan good debt or bad debt?
It can be either. Low-cost borrowing for a degree that boosts your earnings leans 'good'; heavy borrowing for little earnings gain leans 'bad.' The cost-versus-payoff ratio is what decides.
