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This fact is particularly important since student usually can´t provide either even if they were willing to. Another thing to point out is that student loans come with relatively low interest rates especially if you take into account that these loans are unsecured and unsecured loans usually come with very high interest rates. The only drawback is that given all the concessions the lender offers the applicant, the loan term tends to be extremely long and thus the loan will be paid off in many years. Students usually owe around $30000 when they graduate. However, since this debt comes in the form of student loans, it won´t start being repaid till the student joins the workforce.

Besides, the interest rate is low enough not to become an issue and comparatively it´s lower than credit cards, personal loans, and generally any other type of unsecured loan. These loans usually have an agreement as to the percentage of earnings above a certain minimum that will be destined to repay the loan. So, there is not much risk for the borrower, since till he joins the workforce and starts earning enough money, he won´t have to repay the loan. However, this also implies that the loan keeps accumulating interests and that his relation with the lender may last decades.