Todd Lyon is in debt. Credit card bills, a car payment and student-loan payments have been mounting. Creditors call him all hours of the day and plague him with letters threatening legal action if he doesn't send a payment.

For many students, debt is a fact of life. With the easy availability of student loans and credit cards, many students just can't seem to stay out of debt.

Lyon, health and sports sciences senior, is typical of many students. He has been receiving student loans for a year now and has four credit cards, all of which are at their credit limit. He admits that he has spent his student loan money on things other than school.

"I really don't know what I spent all my money on," Lyon said. "All I know is that one day I had my credit cards and the next day they were maxed-out."

Matt Hamilton, director of OU's Financial Aid Services, said student debt is a large problem. He said the number of students borrowing money for school has increased in recent years.

In 1994, 7,398 OU students borrowed an average of $5,200. In 1995, 7,157 students borrowed an average of $4,400. Overall, OU students borrowed $31.5 million in 1993, compared to $39 million in 1994.

Some students say they try to manage their debt.

Justin Greenfield, meteorology senior, said about one-fourth to one-half of his education has been financed by student loans. He said he has spent all the money on education or living expenses and has not squandered it.

"Don't act like it's Christmastime when you get your loan and start spending, because you are going to have to pay this money back someday," Greenfield said. "I don't think some people realize this."

Greenfield said he tries to use his credit cards responsibly to avoid debt. He never carries a balance and only uses them to buy books at the beginning of each semester.

Wayne Cooper, public administration senior, said he also tries to keep his debt minimal. He said about 40 percent of his education has been paid for with student loans. He uses his credit cards but tries to make the payments.

"Students should realize that they are in debt and not spend money foolishly," Cooper said. "I know it's hard, but people shouldn't borrow more than they need."

Chris Harris, advertising junior, said he has been fortunate not to have to get a student loan to pay for his education. He said he has seen too many people go into debt and spend the money foolishly. He does, however, have credit card debt.

"I'm reasonably in debt with the three credit cards that I have," Harris said. "Each one is near or at its credit limit." He said he uses his credit cards for books, clothes and other school-related items.

"I try to use my credit cards wisely and only on things I need," Harris said.

"If I used them as much as some people I know I would be in debt for the rest of my life."

While the number of students borrowing has increased, the number of student defaulters has decreased.

In 1990, 10.9 percent of student borrowers were in default. In 1992, that figure had dropped to 7.6 percent. The average Oklahoma institution has about an 8.7 percent default rate. Nationally, about 16.1 percent of all student borrowers are in default.

Don McCarty, Credit Protection Agency credit counselor, said students should try to maintain a good credit rating in order to receive loans and financing in the future. He said bad credit from non-payment of bills can remain on a person's credit record for up to seven years.

"Some employers are now checking credit history to see how potential employees live," McCarty said. "This can play a role in the decision whether to hire someone or not."

McCarty said it is hard for students to stay out of debt. The easy availability of credit cards and student loans are too much for some to handle, he said.

"Students who have lived at home and have had their parents handle their money can easily get in over their head when they come to college and start getting loans and credit cards," he said.

Hamilton said students should avoid credit cards or have the discipline to pay them every month.

He said students should also watch how much they spend on entertainment.

"So many things are offered at OU for free where students can meet people and have a good time when you are part of the campus community."

Hamilton said many college students make the mistake of not budgeting their checkbooks.

"Students need to watch their finances so they don't end up in over their head," Hamilton said. "Students should investigate their costs and evaluate their financial resources."

Brad Shaw, advertising junior, said he is currently waiting on his first student loan. He said he has several credit cards and is mildly in debt.

"I'm waiting on my student loan so I can get out of credit card debt and just have one bill to pay," Shaw said.

"I'm going to use the rest of my loan to buy a motorcycle so I can drive to class.
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