1. College Debt Good vs. Bad Debt
12th Grade
Advisory Activity

2. Video: Good Debt vs. Bad Debt
Pay attention to:
What is good debt?
What is bad debt?
(Click on picture to play video)

3. 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

4. Video: The Student Loan Crisis
Listen for:
What are some reasons given for college debt being bad?
(Click on picture to play video)

5. 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

6. 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