Submitted by: Submitted by hinakhan
Views: 10
Words: 252
Pages: 2
Category: Business and Industry
Date Submitted: 05/03/2016 01:25 AM
Introduction
As tuition has significantly increased over the past 20-30 years, it has become very common for college students to finance their education through loans. Tuition has become so expensive that it has become near impossible for a student to pay for their education by working. As a result, many students graduate college with thousands of dollars of debt waiting to be paid off. Debt from student loans has become a common reality and something students nowadays just accept. People believe that a college education is worth the price tag because it leads to a good job and higher earnings.
The purpose of this research project is to find out more about the connection between student loans and consumption. The research sets out to answer if students spend more or less if they have a loan and their reasoning behind some of their decisions. It is hypothesized that most college students just accept the fact that they are in debt. They do not worry about their loans because they expect to make a decent salary after they graduate and believe they will be able to pay the loans back later in life. In addition, it is expected that students with loans are more likely to be in credit card debt and hold jobs. Regardless of what the data indicates, something needs to be done about the rising cost of tuition. Students also need to be made more aware of the dangers of debt before entering college makes better financial decisions.