Does taking out a government loan for college help or hinder the student borrower?
Education loans generally help the borrower. The reasons are: 1. Education is the surest way to increase the borrower’s future income. It is very much like an investment whose value appreciates over time. The investment is literally in your own skills and knowledge. The return on the investment is very high, much higher than nearly any other investment. 2. Education loans have very low interest rates, almost as low as mortgages. They have easily the lowest rates for non-secured loans. 3. Being a non-secured loan, they can’t come and repossess if you default. (They can’t suck the knowledge out of your head.) 4. Educated people get other benefits than simply making more money. They have more stable lives, they are healthier, their children are healthier, they tend to avoid destructive things like smoking, they commit less crime, they contribute to society, they pay taxes, they increase the GDP, they reduce the trade deficit, they support their neighbors. Having people who are educated is
