I was in a room a couple of nights ago with about a dozen college kids. We were playing a "get to know you" game of questions. The question was "What would you do with $200 million dollars?" Thoughts raced through my mind...oohhh I would travel, build a house, give gifts to my family, etc. The first answer from these students, "Pay off my student loans." WOW, that was a reality check!
Come to think of it, that would be the first thing that I would do too. I am 12 years our of college and I still owe $15,000 in student loans. The average student now leaves college with $30,000 in loans, which doesn't include what their parents might owe. I am lucky I was able to refi my loans in the mid 1990's when rates were 1 to 2 percent. Now these students are dealing with 6 to 9 percent. (That is more than my mortgage interest rate!!) Just think about how that affects your ability to start life in the "real world."