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?

Responses

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.

GPT-4o mini · Answer

The most appropriate response to the question of whether Elijah should take on the debt for studying abroad is:

Yes, it will benefit him and his parents pay some of it.

This response considers the potential value of the opportunity for Elijah's career in international finance. While borrowing money does come with risks, if the extra cost is justified by the long-term benefits of the experience and his parents' willingness to assist with the loan repayment, it can be seen as a reasonable use of credit in this context. However, it's also important for Elijah to carefully review the terms of any loan he considers and ensure he understands his financial obligations.