More College Students Drop Out Due to Debt Than Academics

Mcsdod

When students build up credit card debt, they aren’t just hurting their finances. They’re also putting their degree at risk.

According to a study from the research firm Teenage Research Unlimited, more students drop out of college because of debt than for academic reasons.

Young Americans are taking on growing levels of debt. This same study pointed out the average student had a credit card balance of more than $3,000.

Most of this spending wasn’t on college necessities like books or tuition but on “fun” items like pizza, trips and partying.

“The average student had a credit

card balance of more than $3,000.”

This is a widespread issue as 76 percent of college students had at least one credit card while 20 percent had four or more.

Most cardholders wouldn’t pay off their full balances each month so they were adding extra interest charges on top of their outstanding debt.

When you factor in the average student also has $27,000 in student loans, it’s easy to see why many students would struggle with money and have to give up on college.

Students need to be very cautious about opening up a credit card. If you decide to use one, be sure to pay off your balance each month to avoid getting into debt trouble.

Parents, be sure to talk to your children about good credit habits before they go college. You may want to think twice about cosigning a credit card application.

Remember, your child can’t get a card without your permission until they turn 21.

A college degree is quickly becoming a necessity of modern life. Debt shouldn’t get in the way of an academic future.

Advertiser Disclosure

BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.

Our Editorial Review Policy

Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.