I came across an article on WalletPop in their Money College section by a recent college graduate. Pop over there and read her student loan story and make sure you are sitting down when you do:

One student’s losing battle with private student loans

Those student loans are tempting. Here’s the rationalization that sucks in many college students:

1. You don’t have to pay them back until you graduate.
2. The interest rates are usually lower than regular loans.
3. Once you graduate, there’s a grace period (allowing you time to get a job).
4. Almost EVERY student has some sort of student loan debt.
5. If you can’t pay it back, you can always file for bankruptcy.
6. They let you consolidate so your payments will be affordable.

All of those statements have some truth in them to some degree. However, it is EXTREMELY important that every college-bound student understand these truths:

1. The interest usually accrues while you are in college (unless it’s a subsidized loan).
2. Private loan rates are higher than federal student loan rates.
3. Going into massive debt for an education is a BAD idea.
4. Many student loans are not forgivable in bankruptcy.
5. That grace period creeps up on your FAST!
6. You may not land a job that pays enough to make those monthly student loan payments.

Parents–please counsel your teens on the downfalls of having tremendous amounts of student loan debt. Encourage them to be financially responsible and prudent when borrowing money for college. Those loans can shackle them for many years after college graduation.