Student loans have gotten a bad rap recently. Part of this is due to the bad economy. Many students are graduating from expensive private colleges without a job or a very low paying one. Some people are bitter because they will spend several decades paying back loans. Others get caught up in a cycle of debt that is difficult to escape. These are both very plausible scenarios which happen to many people. However, a student loan can be an escape out of a hard life if one is determined and does the proper planning.

There are many factors that are affecting the American economy today. One of them is globalization and the outsourcing of jobs. People used to be able to get a stable, well-paying job with only a high school degree. Now millions of these jobs are offshore. Finding a profession that can support a middle-class standard of living that does not require a college degree is getting rarer and rarer.

One possible route out of this is getting a student loan. However, there are many pitfalls future students need to be aware of. First of, be totally aware of how much you will be paying and for how long. Many of the loans being signed today have variable interest rates. They offer a temporary low interest rate to lure in customers. Then the rates "balloon" after several years.

Also if you want to pay off your loans in a timely manner choose a major that will pay well. Nursing is a good example of this. It is difficult and may not be that interesting but it provides a very high and stable income. On the other hand, there are those studying subjects like art history. This is fine if you have plenty of money. But it might not be the most responsible thing if you have lots of credit card debt.