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.
Shutterstock
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.
Like ✪ Share ✪ Be Awesome
