It might be contagious but you just don’t know your neighbors true financial picture. Even on the same block, in the same house, with the same property taxes and an almost identical standard of living- one family has two earners, two defined benefit plans plus IRA/401K from previous employers, very low cost/employer subsidized health care. The other family has one wage earner, a bare bones medical plan with high deductibles, and a 3% match to a 401K which they haven’t been able to contribute to for the last couple of years.
The first couple might be a good bet for some education loans, especially if they are 48 and 50 years old and in good health. The second might be a terrible bet for ed loans since the wage earner is 59 years old and the non wage earner is 55 and hasn’t had a full-time job in 20 years.
People need to understand their own risk profiles. What your neighbor is borrowing or what the parents on the team are borrowing is really not at all relevant to your own situation.