Do Student Loans Educate You on How to Be in Debt Your Whole Life?

Educational costs at an all-time high and continue to rise. Over 65% of college students get financial aid, with the average senior having over $19,000 in debt. While it is a great investment to borrow money for educational purposes, increasing your earning power, too many students blindly borrow the money without a real concept of the value of a dollar, lacking the diligence it will take to pay off the loan in the future.

In addition to student loans, the average college student has $2,700 in credit card debt. That debt will not be paid off easily as most college graduates enter the work force in entry level positions, even if they are within their field of study. Combine their initial income restrictions with the fact that most young people do not have a solid concept of money and you have a recipe for disaster. Sophia Jackson, a counselor for the Consumer Credit Counseling Service, states "it's absolutely epidemic the debts I see with young people...it follows them into their 30s and 40s." Being saddled with debt from an early age without the knowledge of how to pay it off, leaves many young people in a life-ling relationship with debt. $20,000 from college, turns into $30,000 in additional debt from credit cards in your 20s, maxing out lines of credit and possibly bankruptcy.

Parents have an obligation to education their children on managing money and any debt they may accrue. The problem is many parents are life-long slaves to debt from their youth. Their children may not know about their parents' debt because they live in a big house with a nice car and take vacations every year, but that can all be a mirage. A properly educated student will know the value of a dollar, how interest works for and against you and how to properly budget money in order to live within for means and plan for the future.

Many students think a college loan is free money....which leads to problems later in life.

Credit: www.student-loans.net

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