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18 Sobering Facts About The Unprecedented Student Loan Debt Crisis In The United States
The student loan debt bubble in America is spiraling out of control, and it is financially crippling an entire generation of young Americans. At this point, the grand total of student loan debt in the United States has reached a staggering 1.2 trillion dollars, and an all-time record high 40 million Americans are currently paying off student loan debts. Just when our young people should be planning on buying homes and starting families, they find themselves financially paralyzed by oppressive levels of debt. What makes all of this even worse is that only some of our college graduates are able to get the “good jobs” that we promised them. So with limited job prospects and suffocating levels of debt, this generation of young Americans is increasingly putting off major life commitments such as buying a home and getting married. As a society, we really need to rethink how we are “educating” our young people, because what we are doing now is clearly not working. The average Class of 2014 graduate with student-loan debt has to pay back some $33,000. Even after adjusting for inflation that’s nearly double the amount borrowers had to pay back 20 years ago…
The following are 18 facts about the unprecedented student loan debt crisis in America…
#1. At this point, student loan debt has hit a grand total of 1.2 trillion dollars in the United States. That number reflects an increase of 84% since 2008.
#2. Student loan debt in the United States today is actually higher than the national credit card debt as well as the national auto loan debt.
#3. Average student loan default rate of all federal student loan borrowers hasreached 14%. Current default rate has been steadily increasing over the last decade.
#4. Only 28% of Americans know that the U.S. government can garnish wages & withhold tax refunds if student loan debts are not repaid or are in default status.
#5. According to the Wall Street Journal, the class of 2014 is “the most indebted ever“…
#6. Approx. 15% of graduate students leave school with student loan debt balances in the six figures.
#7. According to the Pew Research Center, nearly 4 out of every 10 U.S. households that are led by someone under the age of 40 is paying off student loan debt right now.
#8. The median net worth of young households that have student loan debt is 20 percent lower than the median net worth of young households that do not have any student loan debt and that are led by someone with only a high school education.
#9. Among college educated people, the median net worth of young households that do not have student loan debt is seven times higherthan the median net worth of young households that do have student loan debt.
#10. In 2008, approximately 29 million Americans were paying off student loan debts. Today, that number has ballooned to 40 million.
#11. Since 2005, student loan debt burdens have absolutely exploded while salaries for young college graduates have actually declined… From 2005 to 2012, average student loan debt has jumped 35%, adjusting for inflation, while the median salary has actually dropped by 2.2%.
#12. According to CNN, 260,000 Americans with a college or professional degree reported income earnings at or below the federal minimum wage last year.
#13. Even after accounting for inflation, the cost of college tuition increased by 275 % between 1970 and 2013.
#14. Debt for law school students has risen dramatically over the past decade in 2001-2002, Law students borrowed on average $46,500 at public law schools and $70,000 at private law schools; by 2011, those numbers rose to $75,700 and $125,000, respectively.
#15. Last year it was being reported that 34.9% of all student loan borrowers under the age of 30 are at least 90 days behind on their student loan payments.
#16. One survey found that 27% of those with student loan debt moved back in with their parents after college.
#17. Student loan debt is causing many young Americans to delay getting married.
#18. An increasing number of Americans students are using portions of their student loan money to pay for food, living expenses and bills.
It should come as no surprise that the delinquency rate on student loan debt in this country is far higher than the delinquency rate on mortgages, auto loans and credit card debt. This is a financial bubble that gets worse with each passing year, and if we continue on our current course it is going to end very, very badly.