I might sound like a broken record, but Student Loans Really SUCK! My wife and I know the song and dance by heart now. Go to school, rack up some college debt, and live happily ever after by stressing out about finances 24/7.
You want to buy alcohol at 18 – that is illegal and irresponsible of you. You want to take out $75,000 in college debt within your first year of being a legal adult with no guarantee of a job that can pay them back? Sure…. we encourage it !! Maybe it is me but with so many people questioning everything how come no one is questioning the cost of a college education?
Do not just take my word for it, check out the 17 facts about student loans below!
Student loans have surpassed American credit card debt. According to the NCES there are some 20.4 million students attending American colleges as of this fall. On a positive note, that is an increase of about 5.1 million since the fall 2000, some 17 years ago. The bad thing about this?
70% of those students will exit college with some form of college loan debt. Student loans, are becoming a serious issue as the cost of college education continues to rise year after year, so fast that financial aid can not even keep up.
17 Alarming Facts
1.The most recent figures cite that half of all college graduates have an average of $37,000 in student loan debt.
2. Student loans have doubled in the last decade, reaching an astronomical 1.3 trillion, surpassing credit debt. Oops sorry.. Its at 1.4 trillion now. Thats higher the GDP of all but 15 countries
3. Deferment can cause bigger problems as more and more loans become unsubsidized… Simply put the interest accrues even when you are partying, I mean studying. Or as the Federal Government’s Studentaid site likes to say, “you are responsible for paying interest during all periods.”
4. More alarming than #3, 1 in 3 college students does not know the difference between subsidized and unsubsidized.
5. About 5% have more then $100,000 (like my wife) and these are typically your doctors, lawyers, and people pursuing doctorates. PHD = Piled High & Deeper
6. The 35% drop in home ownership among younger Americans is correlated to student loan debt.
7. Student loan payments are an average of $351 with an average interest rate of 4.5%
8. Student loans have surpassed the monthly grocery bill for most young Americans
9. 3 in 4 parents are currently worried about college funding for their kids
1o. 1 in 2 college graduates think their loans will be repaid according to a Lendu survey
11. The average physician is coming out of med school with over $200,000 in student loan debt. (My best friend is short on sleep and piled high in debt)
12. $30,000 worth of student loans with an interest rate between 4-6% results in $6,500 – $10,000 in interest payments over the life of the loan.
13. Only 41% of students are graduating within 4 years, resulting in more student loan debt
14. Grad students account for 40% of the debt bubble
15. Over 60? Student loans for the 60 over crowd has surpassed 60 billion
16. For profit colleges have contributed heavily to the student loan debt, growing from 40 billion to 230 billion in just 14 years.
17. You CAN pay your loans off and move on in a relatively short about of time!
Josh’s Key takeaways:
- Know what you are going to earn with the degree you are pursing – will the vocal performance master’s actually land you a job ?
- Have a strategy going into college and coming out about how financially you will take care of it, I recommend going here for starters.
- Josh’s Tip: Work over the summers to make rent money and spending money (this really worked for me, my magic number each summer was $5000)
- Do not use all your loan money. Each school year my loans were more then I ended up needing. I sent the extra back. The WVU Hoodie that was $75 at the book store was nice, but I refrained. Don’t blow your loan money just because you have it!
What is your key take away and how can we as a society trend in the right direction? Comment below!
Read more about student loans here: How to Pay off 60K