It may seem like Americans are carrying a lot of credit card debt, but according to new information, it’s student loan debt that is a bigger burden. According to USA Today, outstanding student loan debt is sitting at $850 billion. That number comes from Mark Kantrowitz of FinAid.org and FastWeb.com. However, consumers owe about $828 billion in credit card debt. Student loan debt passed credit card debt back in June.
Some current students don’t seem bothered by how much school is costing them– or will cost them after graduation. Many students don’t know how much they’re borrowing. “I’m scared to know,” Carla George, 20, of Detroit, a junior majoring in biology at Wayne State University, told USA Today. Wayne says she knows her mom borrowed $10,000, and estimates she’s taken out another $10,000 in other loans. “I think it’s a whole bunch more,” she told USA Today.
So along with a degree, many will leave college with huge bills to pay. “Students are far worse off today with student loan debt,” Alan Collinge told USA Today. Collinge runs a website called StudentLoanJustice.org, where students discuss their troubles with college loans. Borrowing jumped 25% last year, and has outpaced inflation for two decades. Parents who once relied on home equity loans to pay for school aren’t able to do that.
USA Today talked to 30-year-old Kate Baker, who currently pays $600 a month towards school debt. Baker says she doesn’t regret earning her degree with debt, but fully expects to be paying it off for many more years. “As you look longer term, it’s scary that my retirement account is basically non-existent,” Baker, who makes about $50,000 a year as a development director for Wayne State University Press, and another $5,000 as mayor pro tem for Ferndale, Mich, told USA Today.
Experts say it’s important for college students to know what they’re getting into before they graduate. A good way to do that is learn what a typical loan amount equates in monthly payments. For instance, $30,000 in student loans would equal about $350 a month for a full ten years. And if you end up not making as much as you thought you would with that fancy degree, moving back in with mom and dad might not be a bad idea.
Tags: Home equity loan, student loan, debt consolidation, debt, FinAid.com, Finance
Related Articles
- Student Loans Surpass Credit Card Debt According to recent research, Americans now owe more in student loans than they do in credit card debt. A report by MSN Money says the reason for this shift is
- College Students Face Trio Of Problems College graduates are dealing with more debt and hiring slump-- which is not a great combination. Nevada-based 8 News Now interviewed college student Raven Reid, who spends a lot of
- Organization Helps Student Loan Borrowers Make Payments Nearly 1.6 million past due federal student loan accounts are getting some much needed assistance. USA Funds says they've prevented nearly $26.5 billion in defaults from student loan accounts during
- Programs Looking To Ease Burden Of Student Loan Debt There are two Federal programs that have been established to relieve student loan debt for those recent graduates who may be struggling to find a place in the flagging employment
- Sallie Mae Study About Rising Student Credit Card Debt A recent study conducted by student loan giant, Sallie Mae, concluded that a large percentage of college students have accumulated an obscene amount of credit card debt in order to