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capologist

About those student loans...

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https://lendedu.com/blog/spring-break-student-loan-study/

Beers, bikinis, and student debt?

With the arrival of March, college students everywhere will soon be anxious to finish midterms so that they can head to their spring break resort. Spring break trips provide a relaxing change of pace for stressed students, but they can also provide a hefty bill.

When one considers the financial limitations of most students, it is easy to ponder this simple question: How are all these cash-strapped college students footing the bill for a one week destination getaway?

Here at LendEDU, we understand that the vast majority of students need student loans to attend college. The popularity of expensive spring break trips amongst students that borrow so heavily did not make much sense to us. We not only wanted to discover how students were funding their spring vacation, but also how they fund other aspects of their lifestyle. To answer this, we conducted a survey of 500 current college students that are going on spring break this year. The respondents also had to have outstanding student loan debt.

The results of our study were alarming and frustrating. We conducted our survey via Pollfish and Whatsgoodly. Both companies used the same screening questions and criteria.

Students Use Student Loan Money to Fund Spring Break

In our first question, we asked respondents: “Are you planning to use money received from student loans to help pay for your spring break trip this year? (Including spending on hotels, airline ticket, etc.)”

According to the LendEDU poll, 30.60% of college students with student debt claim that they are using money they received from student loans to help pay for their spring break trip this year. For reference, you can use student loan funding for living expenses.

The National Center for Education Statistics calculated that 20.5 million students will be attending college this year in the United States. Orbitz reported that 55% of students will be going on spring break. Using this data, we can roughly calculate that 11,275,000 students will be going on spring break this year. And, it is estimated that 69% of all current college students use student loan debt by the time of graduation. By doing some additional arithmetic, we can calculate that roughly 7,779,750 student debtors are going on spring break this year.

Factoring in our data, and assuming the claims made in our survey are accurate, this means that 2.38 million students are using money received from student loans to pay for their spring break excursion this year.

Considering the severity of the student loan crisis in the United States right now, this number is severely disappointing. In a previous study, LendEDU found that 49.80% of college students incorrectly believed the government would forgive their federal student loan balance. This means that a number of college students are using government money to pay for spring break and are fully expecting the government to forgive their lavish expenditures. In another study, 51.20% of parents that cosigned on their child’s student loan said their retirement has been put in jeopardy due to late payments made by their child. Many students are hamstringing their parent’s ability to retire because they are using their student loan money to pay for an island adventure.

Where Else is Student Loan Money Going?

Although not as severe, many students are using their student loan money to pay for things other than spring break.

Nearly a quarter (23.80%) of respondents stated that they have used money received from student loans to pay for drinking some type of alcohol. This answer also included spending money at bars.

A third (33.40%) of students answered that they have used money received from student loans to pay for clothing and other accessories.

Similarly, the same amount (33.40%) of students said that they have used money received from student loans to pay for restaurants and take-out.

6.60% of respondents responded saying that they have used money received from student loans to pay for drugs.

Finally, 5.60% of students that participated in our survey stated that they used money received from student loans on gambling or sports betting.

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This is a hot topic around Spring break.

I remember when my girls went to college and some of the stories I heard about kids using their tuition and living off campus and not even going to there classes?  That's some crazy stuff.  One can only imagine the parent to child relationship that would cause such a thing to happen?  How could they be that dishonest with their parents?  

Another thing to was the meal money, when you find kids are sharing or feeding kids that had none?  Some crazy stuff going on there.  

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On your meal money point. You do realize that most college students work in the summer and/or during the school year? That means money to go out and eat, pay rent, etc. At my college if you didn't use your meal plans on that day, you lost them. That reason alone is why we shared them. It wasn't about making money or a favor for.

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36 minutes ago, Sturgil Simpson said:

On your meal money point. You do realize that most college students work in the summer and/or during the school year? That means money to go out and eat, pay rent, etc. At my college if you didn't use your meal plans on that day, you lost them. That reason alone is why we shared them. It wasn't about making money or a favor for.

I do understand that since I was the one paying.  I also understand this point as well.  Some of the kids I'm talking about weren't even students at the university though.  

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Posted (edited)

There needs to be system to were any left over student loan money each semester goes back to the bank and is applied to your loan debt. Right now the schools just mail you the left over money which lets people abuse the system. I knew a guy who used left over student loan money to pay for the closing on his new house before.

the student loans are broken down into multiple groups

the best way to pay off the student loans faster when you pay extra each month besure to pay the extra only toward one group so that group is paid off faster

once it is paid off start focusing on a new group. Each time you pay off a group your  monthly payment drops making it easier to extra on the next group.

if they are going to break the student loans down into multiple groups take advantage of it.

Edited by Brehus

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1 minute ago, Forever Julian said:

My student loan payment is a luxury car, or a nice house in Alpharetta.

 

Wish it could have been a nice summer break in Cyprus.

 

Are you a dr yet, or are you still in poor residency?

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2 minutes ago, Forever Julian said:

Both:lol:

Great and I remember your plan.  

I don't agree, but I understand with that 2-3 year extended struggle in residency 

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3 minutes ago, lostone said:

Great and I remember your plan.  

I don't agree, but I understand with that 2-3 year extended struggle in residency 

Would have been 5-ish if I didnt get the jump my last 2-ish years of classes. No rush though.Government will get her money back+interest when the time comes.

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5 hours ago, Brehus said:

There needs to be system to were any left over student loan money each semester goes back to the bank and is applied to your loan debt. Right now the schools just mail you the left over money which lets people abuse the system. I knew a guy who used left over student loan money to pay for the closing on his new house before.

the student loans are broken down into multiple groups

the best way to pay off the student loans faster when you pay extra each month besure to pay the extra only toward one group so that group is paid off faster

once it is paid off start focusing on a new group. Each time you pay off a group your  monthly payment drops making it easier to extra on the next group.

if they are going to break the student loans down into multiple groups take advantage of it.

School needs to be more affordable.  Offering government subsidized loans will never make it more affordable.   The price will always be inflated as long as the government backs student loans.  

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3 minutes ago, Flip Flop said:

School needs to be more affordable.  Offering government subsidized loans will never make it more affordable.   The price will always be inflated as long as the government backs student loans.  

Exactly, that made it more expensive, just like healthcare.  The 10 worst words you will ever hear are: We're here from the government and we're here to help...run as fast as you can :D

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1 hour ago, WhenFalconsWin said:

Exactly, that made it more expensive, just like healthcare.  The 10 worst words you will ever hear are: We're here from the government and we're here to help...run as fast as you can :D

the solution is to tax people more. don't worry about costs

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You can thank school administration and the "customer service" attitude universities have these days for why they have become so expensive. 

mdrake34 likes this

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9 minutes ago, Spectre said:

You can thank school administration and the "customer service" attitude universities have these days for why they have become so expensive. 

actually tuition increases often coincide with increases in available financial aid

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1 hour ago, Dago 3.0 said:

the solution is to tax people more. don't worry about costs

Why don't we just tax people 100% and let the government decide how to distribute it and they can give us what's left.  That sounds fair to me, because you know, they spend it so wisely.  

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Posted (edited)

1 hour ago, Dago 3.0 said:

actually tuition increases often coincide with increases in available financial aid

A correlation, without causation. What is the money going into?

Edited by Spectre

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Posted (edited)

23 hours ago, Dago 3.0 said:

actually tuition increases often coincide with increases in available financial aid

That is 100% true the more money people have available the more goods / services are going to cost.

Prime example the parts of the country that has the highest wages typically has the highest cost of living.

Edited by Brehus
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On 3/18/2017 at 2:14 PM, Flip Flop said:

School needs to be more affordable.  Offering government subsidized loans will never make it more affordable.   The price will always be inflated as long as the government backs student loans.  

The best answer is for student loans to go away completely it is all about supply and demand if nobody can afford a service / produce the prices will have to fall, but until that happens I think that all of the left over money from the semester should go back to bank and not to the student.

capologist likes this

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2 hours ago, Brehus said:

That is 100% true the more money people have available the more goods / services are going to cost.

Prime example the parts of the country that has the highest wages typically has the highest cost of living.

Exactly.

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2 hours ago, Brehus said:

That is 100% true the more money people have available the more goods / services are going to cost.

Prime example the parts of the country that has the highest wages typically has the highest cost of living.

Where is the money going? 

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5 hours ago, Brehus said:

The best answer is for student loans to go away completely it is all about supply and demand if nobody can afford a service / produce the prices will have to fall, but until that happens I think that all of the left over money from the semester should go back to bank and not to the student.

Yacht's and mansions are still expensive as fck though.....

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I've got 6k left on my student loans, thank god I wasn't locked in for 100k like some of these kids get, I had 21k when I graduated in 2010. 

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