Student Loan Debt In The United States Continues To Increase At a Staggering Pace
According to Finaid.org, there is currently a little over $884 billion ($884,309,745,875 to be exact) in outstanding student loan debt in the United States.
This includes both federal and private student loans.
According to the site (link below), the student loan debt clock ticked past $833 billion in June of 2010. Of this amount, $665 billion was in outstanding federal student loan debt, while the remaining $168 billion was in outstanding private student loan debt.
So, according to Finaid.org, outstanding student loan debt in the country has increased by over $50 billion since June of 2010. Finaid.org estimates that total student loan debt in the country is increasing at a rate of $2,853.88 per SECOND.
Students across the country are caught in a vicious cycle right now.
Tuition costs at many colleges and universities are on the rise due to state funding cuts. Many states are facing large deficits due to the economic downturn, and funding for post-secondary education usually suffers as a result.
Due to these tuition increases, many students need to rely on student loans even more.
In addition, many students are finding it to be very difficult to find work that would help pay for their tuition and other school expenses. With the national unemployment rate currently sitting at 9.4%, jobs that would usually go to students are now being snapped up by people with more experience who are desperate to find work.
The Bank of Mom and Dad is running dry in many cases as well, thanks to the economic turmoil that has wreaked havoc in the country over the past three years. Mom and Dad are likely suffering financially too, and they don't have the easy access to credit that they had just a few short years ago. In many cases, the family house, which was used as a source of funds prior to the implosion of the US real estate market, is now worth less than the outstanding mortgage.
The real kicker? Despite the fact that many students are facing heavy student loan burdens upon graduating, jobs are very hard to find right now, due to the high unemployment numbers in the country.
There is a reason why many students are being forced to move back in with their parents after graduating.
Source: Finaid.org - Student Loan Debt Clock
Filed under: General Knowledge