College Debt Good vs. Bad Debt 12th 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 Pick your debate team 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