Many people belive that loans are really helpful when they are in financial need. They think that loans will get them out of trouble, but in the long run they will not. Many students take out loans to get a college degree. Over the years they take out more and more loans as the tuition of college continues to rise. This is where the problem lies with college students.24 percent of students actually charge tuition on credit cards; 71 percent are charging books. Ten percent of these students are unable to even make a minimum monthly payment; this is the leading cause of college students dropping out (McGlynn).
College students do not realize how much money they owe. The majority of students take out Financial Aid from the government. They can use this money to not only pay for school, but claiming themselves as an individual also allows them to get more money which pays for the students living. Many students who take out loans view them as an investment. Private students loans interest rates are about half the amount of credit card interest rates. There are many ways that students can avoid taking out tons of loans.
-Applying for grants and scholarships through your university.
-Loan consolidation is one of the most helpful things a student can do before taking out loans. This will help take some of the stress away, leaving the student more relaxed.
-Knowing all of the different options you may have before taking out a student loan.
-The average amount of money for college student debt is $2,200 (Lazarony).