I just kept getting more offers and moved my credit around from card to card. Because her debt was so high compared to her income, her interest rates had also climbed from an initial 9.9 percent to 27 percent. After college, Colette and her new husband, who was attending law school, used their credit cards to bridge the gap between loans and expenses. And we panicked when we realized that we weren t going to be able to make our minimum payments anymore. The study indicated that many students use their cards without anticipating how the bills will be paid off.
Student loans are much more flexible for interest rates and payment than credit cards.
One cause of credit card debt is college students difficulty in adjusting to their newfound financial independence. According to Prikazsky, credit card debt can affect interest rates for privately-funded student loans. It can also affect a student s ability to attend the school of their choice. That calculation is done based on income, not on how the applicants have chosen to spend their money. If they are paying huge sums to credit card companies, they may not have the cash available for their financial contribution.