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Orrin Woodward: Financial Quadrant:  College Debt On the Grow
 
by Orrin Woodward

Personal Finance Quadrant:  In the clash of the titans – College Debt VS College Tuition. Debt is getting all the points on the financial scoreboard.  I don’t know what you remember best about college, but for many the memory is as close as their monthly payments.  Many students find it amazing that everybody wants to give them a credit card, when they are making nothing.  Let’s review this news in the college student financial quadrant.  Credit card issuers know from experience that parents often come to the debt rescue of their college student.

Lender Nellis Mae, recently released a report saying that the personal debt load for undergrads had reached $18,900.  Remember, it gets totally out of control if you are a member of the “make the minimum payment club.”  (I was the vice president of the local chapter.)

Douglas Breithaupt, of the College Planning Network explains it this way.

“The most educated individuals in our society, who would go out and do the best financially are also the ones entering their careers with the heaviest debt we’ve ever asked our graduates to carry.”

Reviewing the cost of college: Prices has gone up at public and private four-year colleges across the country.  It’s one of those good news/ bad news deals. The good news (in comparison) is that as college tuition has increased 22.5 percent over 5 years.  During the same five years, undergraduate debt increased 66 percent. 

Bonus Statement: When it comes to those credit cards that arrive in your school mail box.  Just say “no” to ten years of credit card debt to keep your college debt company.

© 2004, Equad News.  www.e-quadnews

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Orrin Woodward, founder of TEAM column is featured in www.esource-news.com