American Students Borrowed Over $100 Billion in 2010

According to the USA Today, outstanding student loans in the United States will exceed the $1 trillion level for the first time ever this year. That is more money than what Americans currently owe on their credit cards.
In 2010, American students borrowed over $100 billion to finance their educations. This is the most money that has ever been borrowed in a single year by US students.
According to the College Board, students are borrowing twice as much as they did just a decade ago, even after adjusting for inflation. Full-time undergrad students borrowed an average of $4,963 last year, up 63% from a year ago.
The number of students in default is steadily on the rise as well - according to the USA Today, 8.8% students were at least 9 months behind on their student loan payments in 2009, up from 6.7% in 2007.
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It's a vicious circle right now, as:
-many schools are raising their tuition fees
-part-time summer jobs are harder to come by
-parents have less money to contribute to student's expenses
-full-time jobs are harder to come by after graduation
-other expenses (food, heating) are on the rise
Let's be honest - it's a pretty scary time to be a student on the cusp of graduating, especially when you are carrying a mountain of debt.
Source: USAToday.com - Student Loans Outstanding Will Exceed $1 Trillion This Year
Filed under: General Knowledge