Is it a good idea to ask for an educational loan?
In Mexico, studying a career or a postgraduate degree represents a major challenge. One of the main problems or issues around this situation is that many students who finish high school, fail to reach this degree of studies because the university in which they applied did not accept them (because there are many who enroll and few admitted ) or because the cost is very high and they do not have access to an educational credit. Especially in private schools and for a person who still does not work.
In addition, in private institutions, careers have a cost up to 10 times higher than public ones, according to the Mexican Institute for Competitiveness (IMCO).
“Studying some of the 10 most popular professions in a public university has an average cost of between 30 and 40 thousand pesos, while in a private one the amounts soar, since they range from more than 375 thousand pesos for Accounting, to almost million pesos in Medicine ”.
Sounds like a complicated and even unfair situation, but it’s the reality. The vast majority of people who managed to complete their studies is because they had the opportunity for their parents (or ours) to pay for it. To study and work at the same time, or to be part of a public or autonomous university.
What are the options?
A specialty? A master’s degree? While it is true that the higher the degree of studies, the better paid will be the position to which you apply. We must also plan our future in detail. For example, those who finished university and graduated, earn an average salary of 12 thousand pesos, while those who only achieved high school, earn an average of 6 thousand (IMCO) Just half.
Continue preparing for life and have a profession, but above all a postgraduate gives us many tools to break through in a world as competitive as ours. That is why many institutions have found an area of opportunity in education and have developed the modality of offering educational credit.
Now that we know this and would like to study a postgraduate course, how would you do to finance your professional preparation? There are many options, among them are the grants given by organizations such as Conacyt (National Council of Science and Technology), Chevening if you want to study abroad or, those given by the Tec de Monterrey, for example (the difference between these is that in the end it is a loan that you will end up paying whether you want it or not).
The moment to decide
Asking for an educational loan is not a decision that should be taken lightly. Well, as its own nature reflects, it is not money that belongs to you and you will end up paying it weight for weight, along with the interests that entail.
There is a case of a friend who requested a loan from a certain bank to study her graduate degree. She and her classmates thought it was a good idea to do so. However, they did not consider the interest they would have to pay with the monthly payments that will last for a good time.
His initial loan was 80 thousand pesos and is increasing as time goes by. In the end, if they continue paying monthly payments with unpaid interest ahead of time, they will end up paying 240 thousand pesos for the famous loan THREE TIMES MORE THAN THE INITIAL AMOUNT.
Sounds unreal, but this is how loans work with banks. Fortunately, there are many financial options that consider charging just enough for lending money.
To take into account:
- Consider the option of requesting an educational loan and not just the ones that give the bank. Well, these generate many more interests and for longer, without taking into account that it is for your professional preparation
- Find financial institutions that have an agreement with the universities that could work for you
- Choose a loan with fixed interests so that they do not increase over time or with the economic changes that may exist in the country’s economy
- Compare the credit of these institutions with the credits offered by other companies. Like those that work under a P2P lending model for example, they are breaking the credit market by providing lower interest with online transactions and transactions. Much simpler (see Rate)
- Consider the time you are going to study, and compare it with how long your educational credit will last. Although it seems strange, evaluate the cost benefit of your graduate, what your credit is worth and what you would earn in a real position once you enter the world of work. Or in a nutshell: evaluate your Return on Professional Investment.