Shocking Student Debt Statistics
These numbers are jaw-dropping, to say the least!
April 15, 2013
Everyone wants a slice of the American Dream and, in this modern day, going to college is essential to success. Forget the Jones’, these days Americans are finding it increasingly difficult to keep up with the very student loans they took out to help ensure future success.
So, what happens when they very institution that’s supposed to safeguard your future now sabotages it with years’ worth of debt? Experts aren’t completely agreed upon in terms of how to go about solving the crisis but, judging by these numbers, we’d say the issue runs pretty deep.
Here are some shocking student loan debt numbers, via the Huffington Post:
The amount of outstanding student loan debt, which first exceeded $1 trillion in March 2012.
The number of Americans who have student loan debt.
The ranking of student loan debt compared to other types of consumer debt, second only to mortgages.
The Department of Education’s estimated profits generated from student borrowers over the last five fiscal years.
Nearly 300 percent:
The amount student loan debt has grown over the past eight years.
The amount the average college graduate (of the class of 2011) owed in college loans.
The share of households headed by someone under 35 that owed college debt in 2010.
More than 80 percent:
The percentage of bankruptcy attorneys who reported that the number of their clients with student loan debt increased “significantly” or “somewhat” in a February 2012 survey.
Nearly 1 in 5:
The number of households that had student loan debt in 2010 – double the share of households burdened by college debt in 1989!
The new interest rate on subsidized student loans starting July 1 if Congress does nothing. The new interest rate would be double the current interest rate.
More than 1 in 10:
The number of borrowers that defaulted on their student loans in the three years leading up to Sept. 30, 2011.
The default rate in the three years leading up to Sept. 30, 2011 for borrowers that attended for-profit colleges, compared to a default rate of 11 percent for borrowers that attended public colleges.
Keep your fingers crossed for a swift solution on the student loan crisis because numbers of this magnitude don’t just resolve themselves.