College Kids Are Using Their Student Loans To Party Hard On Spring Break

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A recent study performed by LendEDU, roughly 30% of college students are using their student loans to fund wild weekend getaways and spring break trips. 

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It isn’t illegal to use that loan money to purchase booze, sun tanning lotion or a new pair of Ray Bans…but many financial experts find it to be not such a wise choice. 

Greg McBride, chief financial analyst of Bankrate.com told the New York Post that, “Students should minimize their borrowing during their college years and live a sparse lifestyle — but no one wants to hear that when their fraternity brothers or sorority sisters are packing up to Cabo for the week.” “It’s like putting spring break on a credit card, but this one is subsidized by taxpayers.”

The average student loan debt is $28,000. The default rate on those loans is 11.8 percent, according to LendEDU.

The company conducted a survey of 500-college students who have an outstanding student loan debt and who said that they were planning a spring-break getaway.

The 30 percent response rate translates into 2.83 million students traveling to warmer climates on their loans.

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