5 reasons why you may need a student loan

Let’s face it: university education in Nigeria is no longer a walk in the park, especially when it comes to finances. Gone are the days when your biggest money concern was whether you had enough change to buy suya after school. Welcome to adulthood, where the cost of education might make you wish for the simpler days of childhood. But before you hit the panic button, remember that student loans aren’t the big, bad wolf they’re often portrayed as. In reality, they could be the solution you need.

Student loans offer a way to finance your education with manageable interest rates, making it easier to afford the education you’ve worked so hard to earn. However, it’s necessary to tread carefully. Without proper planning, student loan debt can spiral into a significant financial burden. That’s why you must fully understand both student loans’ advantages and potential drawbacks. 

In the spirit of staying informed, we’ve curated five reasons why we think you may need a student loan. 

Limited personal savings

In a country where there’s barely enough to feed, how well do you think its people can save for a rainy day when it seems every day is a rainy day? Many Nigerian families struggle to save enough for higher education. 

According to a 2021 report by EFInA, only 32% of Nigerian adults have formal savings. This often leaves a significant gap between available funds and the cost of university education. For instance, if your family has been able to save ₦500,000 for your education, but your chosen university’s annual fees are ₦1.5 million, a student loan could help cover the difference. It’s important to exhaust other options, such as scholarships or grants, but a loan can be a viable option to make up the shortfall.

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Balance work and study

Right from childhood, we’re made to feel uncomfortable chasing one dream. So, whether rich or poor, the average Nigerian works two jobs, runs a small business or does both while attending school. Juggling many things as a student can be quite challenging due to several factors, such as unpredictable academic calendars, often disrupted by strikes, intensive course loads that leave little time for substantial employment, and limited part-time job opportunities that pay enough to cover tuition or even the basic necessities of life.

However, a student loan can allow you to focus more on your studies, potentially leading to better academic performance. For example, instead of working 30 hours a week at a job that barely covers your expenses, you could work 10-15 hours and use a loan to cover the rest, giving you more time for study and academic activities.

Unexpected financial setbacks

Sometimes, it’s not just tuition that adds up. Unplanned expenses like medical emergencies or urgent academic requirements can derail your educational journey. Consider a student on scholarship who faced a non-life-threatening but sudden medical issue during his studies. A student loan provides a safety net, helping cover these unexpected costs so he can stay focused on healing and resume his studies without the constant worry of mounting bills.

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Long-term investment in your future

Higher education often leads to better job prospects and higher earning potential. According to the National Bureau of Statistics, university graduates in Nigeria generally earn more than those with only secondary education.

Consider this: If a degree program costs ₦4 million in total but increases your earning potential by ₦500,000 annually, the investment could pay off in less than a decade. A student loan allows you to access this potential return on investment sooner rather than later. However, it’s important to carefully consider the terms of the loan and your future ability to repay. Research potential career paths and average salaries in your chosen field to ensure the investment makes financial sense. 

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Living expenses while studying

When we think about the cost of college, tuition fees usually take center stage. But what about everything else that comes with living as a student? Suppose you’re moving out of your parent’s house or attending a university in a city with a high cost of living. In that case, you’ll quickly realize that expenses like rent, utilities, groceries, and transportation can add up faster than expected. Even things like books, supplies, and daily basic needs can strain your budget.

Take Tolu, for example. She’s attending a university in Lagos, where the cost of living is significantly higher than in her hometown. Between her daily meals, daily commute to and from classes, and the occasional buy X and Y, She’s quickly discovering that her savings from part-time jobs aren’t enough to cover everything. This is where a student loan can be a lifeline. By using part of the loan to cover some living expenses, Tolu can focus on her studies without constantly worrying about how she’ll make it through the month.

This is where a Lendsqr-powered digital lender — Irorun, comes in. Student Credit by Irorun is an initiative specifically designed to address these overlooked yet essential needs. Their loans provide swift and easy access to short-term financial support, allowing students like Tolu to concentrate on their studies without being burdened by everyday expenses. 

Learn more: Student Credit: Helping Nigerian students take care of bills other than tuition fees.

Embracing the reality of student loans

As you navigate the complicated world of higher education, it’s important to recognize that the road may be filled with financial hurdles. From tuition fees to unexpected expenses and living costs, the challenges can seem overwhelming. But here’s the thing: student loans aren’t just about borrowing money but about investing in your future.

Whether it’s allowing you to focus more on your studies, weathering unexpected financial storms, or simply making ends meet while you pursue your dreams, a student loan can be the bridge between where you are now and where you want to be. So, while the journey may be challenging, know that with the right tools, like a well-managed student loan, you can turn those challenges into stepping stones. Get your first student loan here.