College kids are using student loans for wild spring break trips
A growing number of students, it seems, will use their student loans to fund their upcoming fun-in-the-sun spring breaks.
Roughly 30 percent of US students will tap into their growing pile of college debt to pay for their weeklong frolic, a survey from LendEDU revealed.
That’s up from last year, when a separate survey, conducted by Google Consumer Surveys on behalf of Student Loan Hero, found that about 20 percent of students spent their loan cash on dining out, entertainment and spring breaks.
While using student loan cash for booze, beer pong and sunblock is not illegal, few experts find it wise.
“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,” said Greg McBride, chief financial analyst of Bankrate.com.
“It’s like putting spring break on a credit card, but this one is subsidized by taxpayers,” McBride added.
The average college student graduates with $28,000 in loans. 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 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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