Granting limited access for students to use credit cards could be the solution. Because “many students are clueless about money management” (Draper, “TCF Bank survey: TFCMM) they have a hard time paying back the banks. A survey sponsored by TCCF Bank in Draper's article, had done a study with teens about money management, and true to say about 90% had said in the survey that they have not been taught how to do financial Management. (Draper, “TCF Bank survey: TFCMM). The familiarization of financing can harm the future of these teens by time they graduate. Many graduates are getting in debt every time once they graduate because they cannot pay back the money they borrowed from the banks, usually student loans, the money lend money by other organizations. Many students in need of financial help are turning to more organizations to lend them more money so they can pay off another debt. even if these helps a little its most likely double the debt. Because it means owing that same money back and it can cause a major headache. The student's life could be in jeopardy and would force the student to work double shifts to pay off that debt. Lennon's article about college debts mentions that college's loans have driven higher, an average in $26,000 in student loans.(Lennon, "With College debts looming, payoff still achievable").
Students considered not responsible for their actions, should not carrying money that is not theirs. Students stressed about many things, especially after having many tests and exams in school. Students in their ages are more active and during this age buying things is just because of greed. The studies done by Palan, Morrow, Trapp II, and Blackburn done research called "Compulsive Buying Behavior in College Studen...
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... debt free.
Works Cited
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Fitzgerald, Kate. "Online Financial-Literacy Lessons Prove Helpful For Student Cardholders." CardLine. EBSCO, 15 Apr. 2011. Web. 19 Feb. 2014.
Draper, Heather. "TCF Bank Survey: Teens Feel 'clueless' about Money Management." The Business Journals. American City Business Journals, 15 Oct. 2013. Web. 19 Feb. 2014.
Mantell, Ruth. "Beware College Students Carrying Credit Cards." The Wall Street Journal. Dow Jones & Company, 10 Sept. 2012. Web. 19 Feb. 2014.
Lennon, Nicholas. "With College Debts Looming, Payoff Still Achievable." The Business Journals. American City Business Journals, 6 Nov. 2013. Web. 19 Feb. 2014.
Wilson, R. (2009). A lifetime of student debt? Not likely. In G. Graff, C. Birkenstein, & R. Durst (Eds.). “They say, I say”: The moves that matter in academic writing with readings. (2nd ed.). (pp. 256-272). New York: W. W. Norton. This article examines how much debt in loans students leave college with and if it is possible to pay it off without it causing extreme distress.
...hew , and Debbie Cochrane. "Student Debt and the Class of 2012." Institute For College Access and Success. December (2013 ): n. page. Web. 12 Dec. 2013.
To understand the student debt crisis, one must first understand what caused it and what results from it. College undergraduates use student loans to finance the cost of tuition, room, board, transportation, and personal expenses while attending (Gage and Lorin). Student loans are different from other forms of debt because basic consumer rights like bankruptcy protection don’t apply to students who default on their loans. As a result, students are virtually locked into their debt, offering them little to no ability to refinance it. Solutions to debt problems like consolidation are available to students but that process doesn’t involve shopping for a better deal from competing lenders like it does in other debt areas. Therefore, interest rates often remain high and the loans remain with the original lender (Vanegeren). As Kayla Webley expl...
High school seniors need to be taught economic responsibility. Economic responsibility should not only be taught in the schools, but in the home as well. As we have discussed in prior chapters, some of the reason we are in the mess we find ourselves in is due to the overspending not only by individuals, but the government as well. Arthur MacEwan states, “U.S. consumers have a reliance on credit and fail to look beyond the present” (2012, p. 6) As a consumer the high school senior needs to be taught how to look beyond what they see. How are they going to pay for the credit they have taken out, if our country hits another recession and they are left without employment?
Kovak, Marc. “Survey suggests credit card companies unfairly target college students.” 31 March 2013. ProQuest. Mira Costa College Library, San Elijo. 15 Oct. 2014.
Children of the twenty first century spend nearly 13 years in school, preparing for what is college, one of the only ways to achieve the so-called “American Dream”. College is the best way to start an advanced career and go further than one possibly could if college degrees were not available, allowing people to achieve their view of the American Dream; whether it be large houses, shiny cars, multiple kids, or financial comfort, college is the stepping stone to achieve the American Dream. But all great things come with a price, college dragging along debt. Students who attend college struggle to find ways to pay for it, leading to applying for student loans. These loans a great short term, paying for the schooling at the moment but eventually the money adds up
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In that year, the number of college graduates was only 432,058 (Sourmaidis) and ever since the demand continually increased as did price. This trend allowed for the student loan crisis to occur, which is a problem we face today. As of 2016, American students have accrued a massive 1.3 trillion in student loan debt. Just 10 years ago, the nation’s balance was only $447 billion (Clements). This ever-present cumulative burden has caused many post graduate Americans to delay important life events such as marriage, homeownership and children because of this substantial encumbrance (Clements).
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Instant gratification or easy access to almost everything is necessary, to have the right clothes and the right shoes, but usually they have no money to buy it with. This is where credit cards come into play, and where many individuals see credit cards as free money. They assume that they can buy it now, and of course, pay it later assuring themselves and their family that they will have the money. This comes down to responsibility; can college students handle budgeting their money? According to a study conducted by a Midwestern University shows approximately 66% of college students did in fact own at least one credit card. Some students can handle it and some can’t, it all depends on what priorities that person has. If buying a hamburger or new video game and not thinking about it is more important than paying that purchase off and establishing credit than those priorities are not good. Credit cards are just another factor in growing up. It 's learning what boundaries you have and what responsibilities are
“Debt Burden: Repaying Student Debt.” American Council on Education. One Dupont Circle NW. Sep. 2004. Web. 12 Nov. 2011.
Dean, Lukas R., et al. "Debt Begets Debt: Examining Negative Credit Card Behaviors And Other Forms Of Consumer Debt." Journal Of Financial Service Professionals 67.2 (2013): 72-84. Business Source Complete. Web. 6 Nov. 2013.