Are student loans considered bad debt?

There has always been a massive backlash regarding student loans. By most of the people, these loans are considered to be a bad debt. It is said that these loans are not suitable for our young generation, which is entering the workforce. According to them, it is not good to have thousands of rupees as debt in your account when you start your first job. 

But that’s not the case. If you look at it from a different perspective, student loans do have a silver lining. These loans can help in building our credit history. These loans allow you to get a degree of your own choice, and once you study something you love, you get a better job and thus start working to pay off your Student loan debt. 

Is student loan debt good? 

In simple words, the answer is yes; Student loan debt is good. They are more like mortgages, because like mortgages, student loans are also a relatively massive amount of money, which takes a while to pay back.

Build credit score:

By paying your student loan back to the lender regularly, it shows that.

  • You can repay the amount no matter how huge it is 
  • This provides your trustworthiness and builds an excellent credit score for you. 
  • You can even get a student loan consolidation when you have a good credit score.

How are student loans, good debts? 

Good debts are something where you get something right out of debt, and bad debt is where you obtain either nothing or something terrible out of them or you have to consolidate payday loan. From student loans, you are getting something great; this debt helps you in getting a degree so that you can have a good job. In other words, student loans help you in securing your future for a lifetime. 

Minimize the loan:

On the other hand, an example of bad debt is a credit card. It is worth nothing and doesn’t help you as a student loan consolidation does. Even if you spend your credit card to buy something meaningful, once you purchase it, it’s value will automatically be lowered and all you will be left with is bad debt. 

But it doesn’t mean that you need to avoid it all the time; just try to minimize it as much as possible, but it’s okay to have a bad debt once in a while. 

How to build credits with student loans?

Even though paying back Student loan debt can be a painful task, paying off your student loans will be helpful in a way that you will have an excellent credit score. With this credit score, you can borrow other things or get more loans. As you will have a good history and credit score in your account, they will know that you are a trustworthy person. 


Having an excellent score of your credit allows you to take more good debts; this way, you can start a cycle of good debts, but keep in mind that you need to pay it back regularly; otherwise, it can accumulate to a level where you won’t be able to pay it off and it will start haunting you. Have a positive image so you can easily consolidate payday loan if you need.