Student loans are often a hot topic in finance as loan balances have soared, leaving students saddled with extra debt once they enter the job market.
According to Success Magazine, however, at least some of this increase in loan amounts has to do with what students are using their loan money to pay for at school.
Many people assume student loan dollars are going to tuition, books, tutors, and test prep materials. Unfortunately, today's young adults are spending up to 41.3 percent of that money on monthly bills like rent and cell phones. Another 14.9 percent goes to clothing and other accessories, and 12.8 percent goes towards food. For those doing the math, that means over two-thirds of student loan money isn't even going towards the school.
Financial ignorance often plays a significant role in these decisions, and it is the role of parents to educate themselves and their children on the costs associated with student loans and develop financially literate children before they go off to college.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
