In 1989, Michael Mihalik was knee-deep in debt at the UW. During his undergraduate years, he had at least eight credit cards, a car and a student loan.

But Mihalik’s experience is not unique to the 1980s. Today, debt is an increasing problem for students nationwide.

It’s no secret that college students are broke. In addition to empty wallets, many undergraduates also owe thousands in credit card debt. According to the nation’s largest student loan provider, Nellie Mae, the average undergraduate has $2,200 in debt, while graduate students owe $8,600.

College students throughout the country have problems with credit, including those at the UW.

“We’re not too far off the national average,” said Diane Cooley, an assistant director of Student Fiscal Services (SFS).

Both Cooley and SFS Lead Outreach Adviser Kyra Worrell believe that a wide range of factors causes student debt, from college freedom to a lack of financial knowledge.

“It’s an easy way to get money, and college students are pretty broke,” Cooley said.

The amount of credit card offers students get is an obvious issue, they said. Whether it’s in the mail or discount deals at department stores, credit card offers are everywhere. And with many company booths setting up shop on or near college campuses, the offers are aimed especially at college students.

Cooley said that unlike many other universities, the UW doesn’t allow credit card companies on campus. Most companies will pay universities a premium in order to advertise on school grounds.

Rather than market on campus, credit card companies often advertise in the University Book Store, setting up tables outside and putting fliers in bags and student guides.

One year, Cooley remembers a company that set up at the end of the footbridge.

“If you signed up for a credit card, you got a box of pizza,” she said.

Getting pizza with a credit card is one of the offers that both Cooley and Worrell advise students to avoid.

“If you’re going to get a credit card, look and find options, don’t just grab it for the pizza or the free T-shirt,” Cooley said. “Don’t get it because it’s pretty.”

Some criticism has been aimed at the UW for allowing students to pay tuition with credit cards. Despite the payment option, Cooley and Worrell don’t believe that it has contributed to student debt.

The University adds a fee for credit card transactions because a third-party vendor manages the payment.

Due to the increased cost, as well as having the option of paying electronically from a bank account, the amount of people paying with credit cards has decreased.

“The UW is concerned about causing debt,” Worrell said.

Despite the stigma of college students and debt, credit cards are an easy way to build credit. College is a good time to get one because it’s one of the few times cardholders don’t need pre-established credit or a parent to sign.

“But if you’re getting one, make an informed decision,” Worrell said. “This is not something you should take lightly.”

As a student, Mihalik didn’t take his several cards seriously. His financial problems in his twenties led the Boeing engineer to write a book about staying debt-free.

“Living away from home for the first time gave me more freedom than I’d ever experienced,” he wrote in an e-mail. “Students want to enjoy their college experience, and that often costs money — money they don’t have. Easy access to credit provides that money.”

Mihalik joined a fraternity, and, surrounded by wealthy friends, began using credit cards to make up for the money he didn’t have.

“I took my dates to expensive dinners, and bought ski and snowboard equipment, a racing bike and stereo equipment. I bought a scooter and then upgraded to a motorcycle,” Mihalik recalled. “I took a lot of road trips in the summer and went on ski and snowboard trips in the winter, all paid for with plastic.”

Using the credit card to pay for everything is something that both Worrell and Cooley warn students about. Both emphasize students should swipe their cards wisely.

Worrell used the example of paying for a large pizza for a group of friends. If students only pay the minimum monthly payment, they’ll end up paying off the pizza several years from now, Worrell explained.

“Always try to pay more than the minimum,” she said.

The Nellie Mae foundation estimates that a credit card debt of $3,300 takes 11 years to repay if cardholders are paying only the minimum payment each month.

Combine credit card debt with student loans, or car and house payments, and a recent graduate can find him- or herself in a lot of trouble.

“There’s no easy way to fix credit,” Worrell said. “It takes time.”

The best way to reduce debt is with a budget.

“They should come up with a plan that they can stick to,” Cooley said.

Students struggling with debt can also contact banks that have financial literature or advisers, or speak with the credit card companies themselves.

“If you’re in trouble, don’t hide; if you contact them [the company], they’re willing to help,” Worrell said.

The UW offers financial classes on a variety of subjects throughout the year. SFS is working to put this information online.

“We want to make the information accessible to students at anytime,” Cooley said.

Mihalik, among others, has written books on dealing with debt. His book, Debt is Slavery: and 9 Other Things I Wish My Dad Had Taught Me About Money, explains 10 things that he wished he had known as an undergraduate dealing with debt.

“I finally discovered that before I could change the way I handled my finances, I had to change the way I thought about money,” he said.

[Reach reporter Erika Cederlind at features@thedaily.washington.edu.]