Debt from College Dropouts?

I read an article recently about how a lot of college debt in the US originates from students who drop out. Can someone explain why this happens? And are there precautions that might help me avoid being part of this statistic? It's a bit unnerving...

You're right in recognizing the financial implications of dropping out of college--doing so can indeed contribute to student debt. When someone drops out of college, they typically may still owe loans for the semesters they've attended, without the degree to enhance their earning power in the job market.

A few reasons contribute to this occurrence. One, dropping out of college midway means the student doesn’t reap the full 'return on investment' on their education—i.e., they might not see the increased earning potential that typically comes with earning a degree. This makes it harder to pay back student loans.

Second, sometimes, the very reasons leading to a dropout, such as financial difficulties or personal circumstances, can also make it harder to repay their debt. Finally, financial aid is often tied to continuous enrollment. When a student drops out, they may lose part or all of their aid, so suddenly they have out-of-pocket costs on top of pre-existing loans.

An effective precaution against this is to have a very clear understanding of your financial situation when you start college. Know your loan terms inside and out, keep a close eye on your spending, and don’t borrow more than what you need or can repay.

Do thorough research on the colleges you're considering (their graduation rates, job placement rates, student reviews, etc) and choose a college that supports you academically, financially, and personally. You might want to consider working part-time during college or applying for scholarships to help offset costs.

Another tip is to seek advice from your academic advisors or counselors on course load and balance. They can help you manage your coursework to prevent overwhelming stress and burnout, which can sometimes contribute to a student's decision to drop out.

Lastly, it’s crucial to understand the importance of staying enrolled and finishing your degree. Remember, everyone's college journey is different, so navigate it at your own pace. There's no harm in taking a lighter course load or taking longer to graduate if it means you avoid burnout and eventually earn a degree. You may also consider starting at a community college which often is less expensive and allows you to take general ed requirements before transferring to a four-year college to complete your degree.

This way, you get to save money, gain college experience, and have a good portion of credits under your belt once you decide to pursue your bachelor's degree. Always remember, the goal of education is not just to enroll, but to complete the program successfully.