Student debt and the dangers of herd mentality

The herd mentality is alive and well in the world of student debt. And it’s driving poor decision making when it comes to getting a college education for your children.

Here is a quote from an article recently titled College Students Gird for the ‘Student Loan Debt Bomb’ in Their Futures.

“Of course, you can always postpone the day of reckoning by staying in school, which delays the payment dates for the loans.

That is what Anna Callaghan, 22, who has $20,000 in undergraduate debt from Santa Clara University, is doing. Now entering a master’s degree program at NYU, the new East Village resident expects to amass another $50,000 in her three-semester program in international relations and journalism. “You’d think it would scare you to death, but it doesn’t,” said Callaghan. “Everyone has loans. The fact that everyone has them makes them seem more normal.” Her parents, she said, “take it a lot more seriously than I do.”

The loans won’t seem quite real, said Callaghan, until she graduates, gets a job and is made to realize “how much of my salary is going toward them.”

Holy cow!! That’s how whacky this whole student loan fiasco has become.

My point in sharing this quote with you is not to pick on this young woman.

I just want you as a parent to see what you are up against when it comes to how your children might think about student loans.

That’s why it is so important to teach your children (as they are growing up) about money and debt.

You don’t want your children to think about money and student debt in such a careless and harmful way.

It could cripple them financially for life.

You have a wonderful opportunity to help them start their young life off on a strong footing. Please jump on that opportunity very early in their life. You will be giving them a gift that will last a lifetime. :)