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Student Loans

by | Jul 23, 2025

Key Takeaways

  • Every student loan dollar is an investment—spend it with purpose. Avoid common missteps like choosing overpriced schools, overspending on food, or extending your college timeline.
  • Use loans only for essential education expenses. Tuition, housing, books, transportation, and strategic social opportunities should be the focus.
  • Debt isn’t free—and it adds up fast. Managing loans early, even during college, can significantly reduce long-term financial pressure.

Video Transcript

When you borrow $1 and go to pay it back in the future, it’s not just the dollar that you’re paying back. You’re also paying back the interest—and that compounds. By the time it’s repaid, that dollar might cost you $1.25 or even $1.50.

That’s why it’s so important not to spend borrowed money on anything that isn’t cost-effective for your education.

Five Common Mistakes to Avoid

Here are five things students often spend money on—but shouldn’t:

  1. Choosing a school that’s too expensive: Students gravitate toward the schools they’ve heard of—the ones with the biggest names. These often come with the highest price tags. But the real question is: Is the value of that education worth the cost? Don’t borrow for a school you can’t afford.
  2. Spending money on food and drink outside the meal plan: Students quickly get used to Starbucks runs, cafes, and dining out. Without parents around, it’s tempting—and it adds up fast.
  3. Taking too long to finish your degree: Every extra semester or year costs more money and adds to your repayment timeline. Finish on time to avoid unnecessary debt.
  4. Delaying loan repayment: The longer you take to repay, the more you’ll pay. Starting repayment early—even during college—can significantly reduce your total burden.
  5. Choosing the wrong school: College should help you get the job you want. With 3,000–4,000 colleges in the U.S., very few are household names. Choose one that fits you academically, supports your major, and has strong career connections. The right school costs less and delivers more value.

What Student Loans Should Pay For

Student loans aren’t spending money—they’re a tool for financing your future. Here’s what you should use them for:

  1. Tuition
  2. Room and board – Where you live and what you eat
  3. Books and academic materials – Which can be surprisingly expensive
  4. Transportation – Whether commuting or going home on breaks
  5. Career-building social activities – Clubs, events, and networking that set you up for success

Student Loans Are Not Free Money

When people borrow money, it often feels like a gift. It’s not.

There is nothing free about student loans. This is a financial commitment that demands effort and discipline—especially while you’re still in school.

If you manage your student debt early and spend with purpose, your loans become what they’re meant to be: an investment in your future.

So borrow wisely.

Related CBRG Blog Resources

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Worried about taking on too much student debt—or choosing the wrong school? CBRG helps families make smarter, more affordable college decisions.

Book your consultation today and take control of your college plan before the bills come due.