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Monday, March 04, 2013

Student Debt Tripled in Eight Years

A new report from the New York Fed shows the explosion of total student loan debt, which shows no sign of stopping

A new report from the New York Federal Reserve further confirms what many commentators have been long saying — student debt is the bubble that just keeps expanding. Total student debt has nearly tripled in the past three years.

Total student debt stands at $966 billion as of the end of 2012, with a 70 percent increase in both the number of borrowers and the average balance per person. The overall number of borrowers past due on their student loan payments has also grown, from under 10 percent in 2004 to 17 percent in 2012.

6 comments:

Anonymous said...

No problem, Obama will just give them a tax payer bail-out, whats a few more trillon in debt, the more the merrier for Obozo and team.

Anonymous said...

They keep trying to get everyone to go to college, but not everyone is college material. And not all jobs require a college degree. It would save a lot of money, if not everyone tried to go to college. It would be nice in a perfect world, but we have to be realistic here.

Anonymous said...

Exactly 11:06. The mindset that everyone deserves a degree is ludicrous. This reasoning has also caused public institutions of higher learning to lower their standards which is a shame for the graduates who are of a higher intellect level. They are getting passed over for jobs due to employers knowing the lower standards of a public U without even the benefit of an interview.
More democratic liberal failed ideas.

Anonymous said...

My daughter was inundated with loan offers that didn't have the best terms. She wanted to borrow money so she could afford a better place to live off campus and avoid having to work. We refused to co-sign and she decided against borrowing more after we took at good look at the terms. She worked retail and attended school at the same time. It worked out in the end. She still has some debt, but nowhere near the amounts some of her friends have.

Mix unscrupulous lenders preying on impulsive young people, foolish decisions to borrow living expenses as well as education expenses and rising tuition costs and you've got a lot of debt.

I agree not everyone is college material but the one's who are need to make better choices with regard to where they attend and how they pay for it.

Anonymous said...

There are actually very few jobs that don't require some level of college education now, especially if you want to move up. Also many people have decided to go back to college or stay in order to obtain higher degrees to be more marketable in the current job market. Parents also need to help educate their children on college loans, and start saving money earlier. I wasn't even told what my college cost were until I got a big surprise at the end of 4 years when I was handed the bills. If I had know what my debt would be I probably would have chosen a different school. People need to take responsibility for educating their own children about money. I know my husband and I will teach our kids about money better than our parents did.

Anonymous said...

My daughter went 4 years and got her degree with only 5k debt due to earned scholarships. She was rewarded with a $12.50 an hour job in her field of study.
Good thing she didn't borrow more!