Class Of 2011: The Most Indebted Of All Time
The average student re-paying loans this year will owe $22, 900.00 nearly double the amount of ten years ago.
The soaring cost of higher education has left the class of 2011 as the most indebted of all time. The average student graduating this year will owe $22, 900.00, nearly double the amount of ten years ago. Combine that figure with stagnant employment levels and the fact that student debt can carry as high an interest rate as subprime mortgages, and it would appear student debt is continuing on an unsustainable path.
The situation, as reported in the Wall Street Journal:
Even as the average U.S. household pares down its debts, the new degree-holders who represent the country’s best hope for future prosperity are headed in the opposite direction. With tuition rising at an annual rate of about 5% and cash-strapped parents less able to help, the mean student-debt burden at graduation will reach nearly $18,000 this year, estimates Mark Kantrowitz, publisher of student-aid websites Fastweb.com and FinAid.org. Together with loans parents take on to finance their children’s college educations — loans that the students often pay themselves – the estimate comes to about $22,900. That’s 8% more than last year and, in inflation-adjusted terms, 47% more than a decade ago.