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Oct 21, 2016 10:48 AM EDT

Many College Students Are Wasting Their Loan Funds On Non-Educational Things

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A lot of graduates are burdened by student loans. Today, the U.S. reportedly has acquired about $1 trillion of college debt.

College freshmen should make sure that they know how to manage their finances well. They ought to find the best account and bank for your current financial situation. They can also keep track of their personal finances with these apps.

There are a lot of college students, though, who are squandering their loan money on non-educational expenses. USA Today College reported that about half of students waste some of their school loan money on things that don't benefit their academic goals.

In a survey by Student Loan Hero, it was revealed that 3 percent of students spend their loan money on vacations, 13 percent spent it at restaurants. 15 percent bought clothes with the funds and 19 percent used it for car payments and other expenses on their automobiles.

There are 3 percent who spent their student loan money on alcohol and drugs. The greatest share, with 41 percent, spent it on monthly bills such as mobile phones.

"I think they're justifying it because of future income," Andrew Josuweit, CEO of Student Loan Hero, said. "They're thinking, 'This is the cost of doing business, this is my overhead.'"

Apparently, some students believe that once they earn their degree and land a high-paying job, they can easily repay their loans. However, they are not thinking of the interest that will only rise.

It was noted that the average 2016 graduate will bring with him or her $37,000 of debt along with their diploma. Betsy Mayotte, director of consumer outreach for American Student Assistance, emphasized on the fact that students need to know and understand that debt can haunt them for years. "If you live like a lawyer when you're a student, you'll live like a student when you're a lawyer," she said.

The survey also found that 9 out of 10 students follow their passion but 80 percent eventually switch majors, which is costly. Mayotte suggested that students wait and explore courses first.

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