by Robyn Keyster

Created on: November 10, 2009

We've all heard the horror stories: college students graduating with staggering student loan debt, unable to pay it off and with nary a good-paying job in sight. Given the current economic downturn and sluggish job market, these stories seem to be growing in both numbers and intensity. Unfortunately, though, student debt has become a necessary evil, one crucial to obtaining that coveted college degree. With higher education more expensive than ever, it makes sense that most students will have to borrow at least some money before graduating. However, going into massive debt - taking out tens of thousands of dollars or more - is rarely a good idea for anyone, let alone young adults just entering a shaky workforce.

If one were to go anywhere near $100,000 in debt for an undergraduate education, the result would likely be financial catastrophe. On its own, $100,000 is extremely difficult to pay off; once interest is tacked-on, the amount explodes into downright impossibility. Moreover, current college graduates are finding it tougher and tougher to even obtain jobs, let alone the six figure salaries that could go up against a debt of $100,000. Consequently, today's students should definitely seek to minimize debt as much as possible.

Of course, there are students who plan on entering traditonally high-paying fields, such as law, engineering, or medicine. Going into deep debt might not seem a bad idea for these individuals, as they anticipate a big payoff in the near future. However, few students who enter college graduate with their original major, and the high-paying areas of study are no exception. Given that these fields tend to be extremely rigorous and stressful, their retention rates don't justify huge amounts of debt. These prestigious fields also tend to be highly competitive, so success is no guarantee.

If these types of students do decide to take out lots of loans, and then decide that maybe law or medicine just isn't for them, the consequences can be ruinous. Their credit may be ruined, and since employers often take a quick glance at a prospect's credit report before a final job offer, they may find themselves in deep financial trouble. Additionally, if someone in a lucrative field decides to change their major to something more do-able, they may be so bogged-down by the stress of debt that they may drop out altogether. Finally, students who take out massive loans might force themselves to stick with a high-paying field, just because they have to.

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