Debt is a very common problem with students, whether they're in high school, college or graduate school. In today's social climate, there are many reasons that expenses could pile up and cause students to go further and further into debt. Here are some of the reasons why students often find themselves in debt.
Types
There are many types of debt that students can find themselves in. One of the most common debts is school loan debt. Paying for college or graduate school can be extremely expensive, especially if you have remnants of other debt to deal with. For example, many graduate students are dealing with undergraduate debt from college loans (although it sometimes is possible to request a longer "grace period" from paying back college loans while still a student). Credit card debt is also a very common cause of student debt. Also, many students are in debt to their parents, owing them money they were loaned to help them through school.
Benefits
There really aren't any benefits for students being in debt. If students buy things with credit cards without thinking of the consequences, it might be fun for that moment, but when reality sets in and they have to pay off their credit cards (or at least the minimum charges), they will definitely be regretting their choices. Debt doesn't have much in the way of benefits, which should be a deterrent for students when they sign up for credit cards.
Effects
Being a student in debt has a lot of negative effects. If a student is deeply in credit card or school tuition debt, she might have to take on a part time job to pay off her expenses. This could cause her to have less time to concentrate on her schooling and assignments, which could in turn make her grades drop and negatively affect her sleep and social life.
Theories/Speculation
One factor that could cause students to get into debt is actually peer pressure, surprisingly enough. In an academic and social environment, there is often the pressure to be "hip" and look good. Clothes and accessories are often the way to achieve this. However, the problem is that hip and stylish clothes and accessories are often really expensive and not practical for a student's bank account. Many times students use credit cards to purchase expensive items that they can't really afford, and this moves them further into credit card debt.
Prevention/Solution
A good way for students to prevent getting further into debt is to set aside a budget. If a student sets a strict budget for himself on a weekly basis, such as $100 for everything including groceries, that will help him not let his spending get out of control. It is also a good idea to write down everything purchased, as small as it may seem (everything from chewing gum to a DVD rental).
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