Today, heavy debt accumulation starts in college. Before many students graduate, they are burdened with student loans, credit card debt, and car loans that follow them out of college and for years into their future.
Although student loans are a necessity for most students to pay for college tuition, they are still loans and they have to be paid back.
Credit cards are offered to students even when they have no viable way of paying the bill and students eagerly accept them because they feel a need to have the extra buying power.
Student debt has become a major issue in this country and for students around the world. The cost of a college education has skyrocketed and there is no relief in sight.
Many parents, although wanting to send their children to college, do not adequately prepare for what lies ahead. And this is not to imply that those parents are negligent or irresponsible. Many parents simply cannot afford to save nearly enough for their children's higher education so many students are left to fend for themselves.
Another problem with the repayment of student loans has to do with the type of job the student is able to get after graduation. The student may not be able to get a high paying position and with tens of thousands of dollars in student loans and other debt, many students find it very hard to make consistent payments.
Many students get behind on their monthly obligations and their credit rating is severely hurt by it. It becomes difficult to buy homes, get credit cards, cars, and other items that may require a good credit score.
Some students feel that since the loans were for educational purposes, they should be given a break by creditors. But that is not going to happen in most cases. Creditors look at student loans as debt that need to be paid. They feel that if you don't pay your student loans in a timely manner, you may not pay your debt on time either.
Students should be careful concerning their credit and the amount of debt they acquire during their college years. It may not seem that important now, but in the future, what you accumulate in debt may come back to haunt you and make a big difference in your debt destiny.