Our View: As student debt hits frightening proportions, it’s even more important for students to plan for their financial futures.

Americans are set to owe more from student loans than from credit cards for the first time, according to an Aug. 11 report from the Federal Reserve Bank of New York.

The report also showed the number of students defaulting on their loans has risen continuously since 2003, while defaults on mortgage, auto and credit card debt have been dropping since 2009.

These startling statistics make us ask: With the economy and job market still in a slump and no recovery in sight, do student loans make sense?

Obviously, many students can’t go to college without loan money, and it’s hard to argue with the value of an undergraduate degree. But graduate school is a different question.

Many students reach the end of their four — or five, or six — years of undergraduate study, get scared of entering a difficult job market without a strong plan and decide to pursue graduate study as a default option.

Similarly, many former working adults are flocking back to universities to pursue more education, hoping it will improve their job prospects. With the steep rise in college tuition over the past few years — a trend even OU is not immune from — this has resulted in a sharp increase in student debt.

We’re never ones to discourage education. And Sooners are lucky that OU has kept its tuition relatively low and stable, eliminating most students’ need for massive student loans. But many students are coming out of graduate school with an unmanageable level of debt and still are unable to find a well-paying job. Adding extra debt on top of your undergraduate loans is a risky move, and it doesn’t pay off in every circumstance.

Even if you don’t go to graduate school, the first few years after graduation are filled with loan-related pitfalls that can destroy a graduate’s financial future. But there are some ways to ensure your student loan debt doesn’t defeat you:

• Apply for scholarships and grants before you borrow.

• Apply for federal loans before private loans — they’re cheaper and offer better protections.

• Check if your loan qualifies for graduated, extended or income-contingent repayment to lower your monthly payments. Call early, before you risk default.

• Use your subsidized loan before touching unsubsidized offers.

• Take only as much as you need for education expenses, not personal spending.

• Discuss options to temporarily defer loan payments with your lender.

• Research debt forgiveness benefits from certain military, medical, legal and volunteer programs.

• Visit the National Student Loan Data System online to access your loan details, or go to StudentLoans.gov for more information.

As student loans, average student debt and defaults increase, students are going to have to start making some difficult choices. You shouldn’t go into unnecessary debt, but you also shouldn’t be afraid to accrue debt to get a solid education. Just plan ahead, budget intelligently and know your options before you end up defaulting.

LINK:To visit the National Student Loan Data System, click here.