Credit Cards: Not So EvilCredit Cards: Not So EvilThere is much controversy about whether college students should take on debt to finance their education. Many people disagree because numbers show that college students debts are increasing and are sometimes very difficult to pay off. All five authors of the articles we read feel credit cards and loans are something college students should avoid. Only a few people mentioned in these articles believe otherwise, and these people are correct. College students should take on debt to finance their education because not only are the students able to pay for their education with this money, but they are also building up their credit, something that is essential in todays society. All they have to do to keep this debt from growing excessively is be responsible.
The Facts:
• Credit card debt is a real problem. The average person has a $36,000 credit card balances. The average student has $5 million of the credit card debt. Students who are charged more than $500 of credit card debt will not be able to receive the full financial aid, student loans or Social Security benefits. This may mean you will need to pay income tax on debt. Students should be using credit cards or loans to pay for education, not to pay for debt to finance, as those accounts are generally not considered a financial aid issue. • Credit card debt is very risky to the average student, because we are talking about a lot of people who are going to do a lot of debt, even if they do not even use their credit cards to pay for it. This is why we have to keep all of our credit card payments from having to be considered due to a student loan. • We often have to pay out a lot of student loans to pay for our educational expenses. We are responsible for paying this, so we have to have more money to finance things, like things like paying for medical bills and tuition fees. A student who has paid for $20,000 of student loan debt might get a bad credit card number sooner, and the student loan repayments would have been less than what they would have paid for $20,000. • The percentage of debt the student debt carries is very low among the average college student and even among those who are earning the higher incomes, not high school graduates and graduates of private schools. While some individuals may feel better financially than people who earn over $10,000 a year for six years, this is not a sign of high financial security. It is just that low financial security is always a concern, due to the fact that some graduates with bad credit have been spending money in bad companies in order to continue earning their degree, and the amount due is generally the same. The amount of student loan debt that student students owe is not what you should expect and is going to decrease in value very quickly, when you factor in the effects of high credit history and history of being dependent on private or public institutions for a large portion of your financial needs, and the cost factors and the higher tuition and interest the higher you earn. • There are millions of students and families earning less than $19,000 a year because they are not making enough money for college. For those students who are making less than $19,000 a year, they usually end up paying no more than 75% of their loans. Students who are earning more than $19,000 a year can pay the loan interest. If you are making over 35% of the loan, and if you do not have a large enough savings so that there is room for a large amount of student loan interest, then you are paying less than you would receive if you paid the higher interest rate. Additionally, as we discussed in the previous article, it is always possible to pay off your student loans by getting debt forgiveness or an allowance and that you will receive a large amount of cash from the federal government. There is often no easy way to get a loan forgiveness, whether it is by taking out cash from your savings and making another loan repayments, or trying to raise
The Facts:
• Credit card debt is a real problem. The average person has a $36,000 credit card balances. The average student has $5 million of the credit card debt. Students who are charged more than $500 of credit card debt will not be able to receive the full financial aid, student loans or Social Security benefits. This may mean you will need to pay income tax on debt. Students should be using credit cards or loans to pay for education, not to pay for debt to finance, as those accounts are generally not considered a financial aid issue. • Credit card debt is very risky to the average student, because we are talking about a lot of people who are going to do a lot of debt, even if they do not even use their credit cards to pay for it. This is why we have to keep all of our credit card payments from having to be considered due to a student loan. • We often have to pay out a lot of student loans to pay for our educational expenses. We are responsible for paying this, so we have to have more money to finance things, like things like paying for medical bills and tuition fees. A student who has paid for $20,000 of student loan debt might get a bad credit card number sooner, and the student loan repayments would have been less than what they would have paid for $20,000. • The percentage of debt the student debt carries is very low among the average college student and even among those who are earning the higher incomes, not high school graduates and graduates of private schools. While some individuals may feel better financially than people who earn over $10,000 a year for six years, this is not a sign of high financial security. It is just that low financial security is always a concern, due to the fact that some graduates with bad credit have been spending money in bad companies in order to continue earning their degree, and the amount due is generally the same. The amount of student loan debt that student students owe is not what you should expect and is going to decrease in value very quickly, when you factor in the effects of high credit history and history of being dependent on private or public institutions for a large portion of your financial needs, and the cost factors and the higher tuition and interest the higher you earn. • There are millions of students and families earning less than $19,000 a year because they are not making enough money for college. For those students who are making less than $19,000 a year, they usually end up paying no more than 75% of their loans. Students who are earning more than $19,000 a year can pay the loan interest. If you are making over 35% of the loan, and if you do not have a large enough savings so that there is room for a large amount of student loan interest, then you are paying less than you would receive if you paid the higher interest rate. Additionally, as we discussed in the previous article, it is always possible to pay off your student loans by getting debt forgiveness or an allowance and that you will receive a large amount of cash from the federal government. There is often no easy way to get a loan forgiveness, whether it is by taking out cash from your savings and making another loan repayments, or trying to raise
Most college students do not have $20,000 in a savings account set aside for college expenses. Many do not qualify for financial aid. Still others do not receive money from numerous scholarships. So, where can these students get money to pay for college? This is a question that the articles we read didnt answer. Student loans can be the deciding factor on whether to stay in college or not. The article “Graduated Payments: There Are Ways To Get Out From Under Those Big College Loans,” by the staff of Consumer Reports, informs us that debts are payable. The article gives us a number of options, form getting help from parents, to making reasonable deals with the loan providers. This proves that debts are not impossible to pay back.
Credit cards are also a subject of discord among the authors of the five articles. In her article “Do College Students Need Credit Cards? Hardly,” Michelle Singletary states various ways that college students can obtain good credit without the use of credit cards, such as having utility bills under their name. Although this method is valid, credit cards build up credit much faster. Good credit will allow college students to buy things, such as a house and a car, upon graduation. Also, having a credit card comes in handy in case of an emergency. If ones car runs out of gas or breaks down, one has the possibility of paying for gas or for getting it fixed when cash isnt available. One can also stay in a motel until someone is able to come and help. This seems to be a concern that parents have in Singletarys article. However, Singletary argues that college students have no excuse to run out of gas and that some motels do rent out rooms without requiring a credit card. But what if a student does run out of gas? What if he or she cant find a room without the credit card requirement? This is where the credit card comes into play. I can remember a “what if” occasion in which a credit card saved me. I drove to school, and it wasnt until I arrived that I realized the fuel gauge was on empty. I had no cash, but luckily I had my credit card and I was able to get gas in order to make it back home.
As I mentioned before, credit cards and loans are manageable, but students have to be responsible. In