By Jesse Herman, contributing editor
As college enrollment increases, so does the amount of student loan debt, credit card debt and interest rates to be paid. There was a time when interest rates were reasonably low but that time is over and we can expect a steady rise in the coming years.
Over 65% of all students receive student loans in some form and the average debt upon graduation was $19,202 according to the 2003-2004 National Postsecondary Student Aid Study (NPSAS).
Interest rates for student loans in 2005 were 4.70% during in-school grace periods and 5.30% during repayment periods. On July 1, 2006 this increased 1.84% to 6.54% during in-school grace periods and 7.14% during repayment periods. 
The best advice most graduates can receive is to pursue student loan consolidation or debt consolidation. Rachel Drake (University of Central Florida Graduate: 2006) was recently asked what she knew about loan consolidation. Her response, “I’m not sure but I’ve been getting a bunch of emails about it.” This is not to pick on Ms. Drake, merely to point out the issue lies deeper than irresponsible spending. Still, the spending is mind boggling.
In 2004, 76% of undergraduate students had at least one credit card with an average outstanding balance of $2,169 (creditcards.com). The average graduate had six credit cards, with one in seven owing more than $15,000.
College students are spending and borrowing more than ever. It is easy to question who is at fault.
Clearly the parents of these kids have failed in teaching fiscal responsibility, right?
Chew on this: 23.8% of American households don’t own any type of credit card. Additionally, 31.2% of the households surveyed paid off their most recent credit card bills in full. From 1998 too 2001, 55.3% of households with bank cards paid off their balances, an increase of 1.5%. Is it possible student spending has gone out-of-control despite over 50% of students coming from families who don’t owe anything?
NO!
University costs are at an all time high with payments to be made; rent, books, classes and transportation are all victims of rising costs. College students have had to shoulder much of this.
The real question is whether students leave college prepared to manage debt. Terms like “debt consolidation” should be the mantra of many soon-to-be graduates and not merely a mental note from an email.
Debt no longer exemplifies irresponsibility, rather a reality of the modern day graduate. If students are not given proper notification at school, mistakes are bound to be made, only to be corrected once the real world snaps them into self preservation mode. Some graduation celebrations will have to be cut short- as students have many financial lessons to learn the hard way.
