Five Reasons Why Student Loan Debt Isn't so Bad

Although student loan debt can be intimidating, it actually isn't a bad idea for most college students. Here are five reasons why student loan debt isn't such a horrible thing:

1. Student loan debt is a necessity for many college students: With the high cost of college today, many families simply cannot afford to educate their child without taking on some form of loans. The College Board estimates that average college tuition costs had increased 35% between 2001 - 2006, while student financial aid had increased by 3.7% per year during this period, making it increasingly necessary for students to take out larger amounts of student loan debt. According to the National Post-Secondary Student Aid Study (NSPAS), 66% of all college students graduate with some student loan debt (the average debt is $19,202).

2. Student loan debt is an investment in the future: According to the National Center for Education Statistics, college graduates between the ages of 25-34 can expect an average salary of $43,500, while high school graduates see an average salary of $27,100. Since college graduates can earn up to 37% more than high school graduates, a college education (and the student loan debt that can go along with it), should certainly be seen as an investment in one's future.

3. Student loan debt encourages financial responsibility: Although you certainly hear stories about college students using loan money to fund unnecessary spending, student loan debt can certainly help students to learn to be responsible financially, especially upon graduation when the student must begin to make payments on his or her student loan debt. The loan payments are often much smaller than car or rent payments on a monthly basis and can encourage students to be more fiscally responsible than their peers without student loan debt.

4. Student loan debt encourages academic responsibility: Undergraduates with student loan debt have a larger stake in their education since they know that they will have to help to pay this debt when they graduate. Thus, they may take their studies more seriously and may work harder to graduate on time.

5. Student loan debt won't necessarily kill your financial health (as long as you don't take on too much of it): Paying your loans on-time will improve your credit score, which can help you when trying to get a mortgage or car loan. In addition, student loan debt is tax deductible. However, taking on too much student loan debt, or misusing the debt for something other than college, can hurt you financially in the long run.