The purpose of this site is to help young people avoid costly mistakes early in their financial lives. One of the biggest mistakes a young person can make is to burden themselves with huge student loans. As this article attests, in a bad economy a huge debt burden can leave you unable to stay afloat financially.
“The number of college students who defaulted on their federal student loans climbed in the fiscal year that ended in September 2008, according to new government data released Monday.”
Defaulting on Federally backed student loans leaves you in terrible shape. You are subject to large fees and interest. And in those times when things get really bad financially, most student loans are not dischargeable in bankruptcy.
My family has been greatly burdened by huge student loans to the tune of over $110,000. With careful planning, we intend to retire our student loan debt within a few years, but it has been an extremely difficult challenge with which to contend. We’ve had to sacrifice much of the good things we want to pay for those decisions. Had I made smarter financial decisions when I was younger I would be living a more comfortable life.
http://www.usatoday.com/money/perfi/college/2010-09-13-loan-default-rates-rise_N.htm
