But with big loans come big problems. During the same period, the percentage of credit-card carrying students with four or more credit cards rose from 27 percent to 32 percent, according to Nellie Mae. Unfortunately, most students spend more time studying than punching a clock to earn a living necessary to pay for growing indebtedness. It's difficult to determine which is worse. Credit cards are among the most expensive form of credit.
Student loans are forever.
Many young people's lives have been ruined because of their student loans. Not so with student loans. You're stuck with them for life, even though you made decisions about the loans at a very young age. The interest you owe gets added to your outstanding balance. Students with larger debts more significantly overestimated the percentage of their income they could afford to contribute to repayment.