Elijah has an opportunity to study abroad, but this will cost $5000 more than his regular college tuition. He wants to have a career in international finance when he graduates, so this opportunity will be particularly valuable for his career. His parents encourage him to go and tell him that they will help pay back the loan next year when they are done paying his brother's college tuition. Is this a good use of credit?

Question

Elijah has an opportunity to study abroad, but this will cost $5000 more than his regular college tuition. He wants to have a career in international finance when he graduates, so this opportunity will be particularly valuable for his career. His parents encourage him to go and tell him that they will help pay back the loan next year when they are done paying his brother's college tuition. Is this a good use of credit?

• No, he cannot be sure of the terms of the loan.
• No, students should never go into debt for education.
• Yes, it will benefit him and his parents pay some of it.
• Yes, borrowing is always fine if it is related to education.

Answer 1

I would say the best option is: Yes, it will benefit him and his parents pay some of it.

Given Elijah's career goals in international finance, studying abroad will provide valuable experience and opportunities that could be beneficial to his future. Additionally, his parents have expressed their willingness to help pay back the loan next year, which shows their support for his decision. As long as Elijah is aware of the terms of the loan and confident in his ability to repay it in the future, taking out a loan for this opportunity could be a good use of credit.