Most students go to college in hope of getting a career in their field of study.
What many students don’t realize is all the debt that will be accumulated while attending school.
According to the Center for Economic Policy and Research, about two-thirds of students admitted to a four-year public college or university get a loan to pay for school expenses.
School expenses can include books, cost of attendance, living allowances, health, computer and lab fees.
By graduation, an in-state senior will owe nearly $17, 600 in loans. Many out-of-state students will pay three times this amount.
Students usually receive a government-funded loan each semester, commonly called a net check on the campus of Florida A & M University.
Many students do the right thing and buy their books and pay off their classes, but some students choose to go on shopping sprees, purchase 24-inch rims, take trips and club every night.
Students should save their money in a money market account, invest it in the stock market or pay off their loans early, to help offset future debt.
Low-income students with good credit should be extra careful.
Lenders tend to send you credit card offers in the mail and private lenders get you to sign off on additional loans.
The National Center for Education Statistics’ National Postsecondary Student Aid survey reported that students from lower-income families who attend public institutions are one-third more likely to receive a loan than students coming from high-income families.
But, no matter what your financial background is debt is a problem for every student.
Being responsible now with your money, will help you control your spending habits upon graduation.
Keeping your debt under control will dertermine what type of car you drive and what type house you’ll buy.