Why Are College Students Broke?

Many of us like to joke about the classic ramen noodle diet or having to order off the dollar menu for breakfast, lunch, and dinner but this is a reality for a lot of students.

It’s almost an epidemic, in the U.S. alone 36% of the 51% of people living below the poverty line are college students living off campus, now if that’s not a wake-up call than I don’t know what is.

But why are college students broke? I mean, there has to be a reason why this is a growing issue, what’s making students get to this point.

No one wants to struggle, but why is this the norm among college students across the country?

Here are 4 THE 4 BIG REASONS why I think students are falling into this category:

Broke In College

1. Too Poor For College But Too Rich For Financial Aid

The “middle-class trap” as some people like to call it is the result of a student making more than what would qualify them for financial aid but not enough to cover their college tuition.

Unless they or their family can pay for their college no problem, students are left with little options.

This results in students all across the country left taking out massive loans or going through college hardly able to afford their expenses outside of tuition.

2. Need Money But Have No Time

This is something that a lot of students can relate to, “I need more money, but I have no time.”

With the absolute minimum to be an undergraduate full-time student being 12 credits, many students are left with little to no time to work, much less working full time.

Unless you have a high paying job with great hours and an understanding boss you might be out of luck.

So many students are left either struggling to make ends meet while having the stress of being a full-time student.

3. College Expenses & Tuition Are Rising

You can ask your cousin, brother or sister who graduated not even a few years ago and you’ll be astounded at how much the cost of college has increased.

Take a look at this chart provided by CNBC reflecting college expenses over the last couple decades.

cnbc-college-prices-going-up
Read full article here- CNBC College Price Inflation

Showing the cost of Apparel, Transportation, Food, Housing, Medical Care, CPI, in some cases have increased over 100% since the early 90’s.

Not to mention just the cost of textbooks these days for one semester can easily run into the $1,000’s, college students are left spending money they don’t have.

4. Credit Cards & Interest Rates

Unfortunately, with the blessing of credit giving you access to money you usually wouldn’t have had, there are some problems.

With credit card companies seeing this vulnerability as more of a business opportunity than a problem worth solving they are preying on students doing more harm than good.

With high-interest rates and a small likely hood of paying the amount back in time, you are left with increasing monthly payments and debt.

Note: You are much better off taking a private student loan to cover your expenses rather than depend on credit (unless absolutely necessary).

Free Advice and Resources To Use:

In light of all this here are some great resources free of charge to hopefully counteract this statistic and give you a helping hand in your college experience, on us.

Just because you’re in college doesn’t mean you have to be content with being broke.

Until next time,

Tyler of Broke College Solutions

 

 

 

 

P.S. We have a serious Taco Bell addiction and the affiliate links on our site lets us order off the dollar menu. Thanks for your support!

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