The credit mistakes that students make today can affect them for years to come, so as parents, it is our job to ensure we teach them about responsible credit use. Our kids often look to us for financial advice and guidance but many parents don't fully understand how to build and maintain a good credit score either.
While the concerns regarding the potential negative impact of certain high interest loans are legitimate, the debate has failed to consider the context in which high interest loans exist. It is too simple to label a loan "high interest" by looking only at the annualized interest rate. There are many other factors that determine the true cost of borrowing.