College Debt Good vs Bad Debt 12 th
College Debt Good vs. Bad Debt 12 th Grade Advisory Activity
Video: Good Debt vs. Bad Debt Pay attention to: – What is good debt? – What is bad debt? (Click on picture to play video)
What is Good and Bad Debt? • Good Debt – Need a necessity but do not have the money to buy it – Taking out loans: can afford the monthly payments – Creates value and provides way to earn more money • Bad Debt – Things that can be consumed fairly quickly with no or little cash or personal value – Buying something you really do not need – Cannot afford the monthly payments – Paying high interest on loans
Video: The Student Loan Crisis Listen for: – What are some reasons given for college debt being bad? (Click on picture to play video)
Student Debt Issues • Increasing tuition costs escalates student debt – Harvard Tuition 1952: $600, 2012: $36, 000 • Student Debt – 2/3 of all college students are in debt – Average amount of debt: $25, 000 – Default rate on student loans has doubled since 2005 – Many students go back to school and take on more debt • Students have to postpone major life events – Buying a home or starting a family
Prepare for Debate • Debate topic – College loans are a good debt • Pick your debate team – If one team has more people, be brave and choose the other side even if it is not what you believe. This helps build debate skills. • Create arguments for your side of the debate – Create rebuttals to the other team’s anticipated arguments • Reporter: Write down your main points
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