College Debt Continues To Get Worse Despite Increasing Attention
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According to the latest research, families are not saving enough money for college, students are deeper in debt and about 13 percent of college graduates owe $50,000 or more for their education. The research’s bottom line is that the miseries of college debt continue to get worse even with attention being paid to the ever-increasing debt of America’s young.
From 2004 to 2012, the amount of students who had to take out college loans increased to 70 percent or about 7 percent annually. That’s according to data from the Federal Reserve Bank of New York.
The report shows that 17 percent of college graduates have not been able to pay their loans for more than 90 days. This is compared to just 10 percent in 2004.
Total debt of all outstanding loan balances is close to $1 trillion.
It seems that having student loan debt is a rite of passage in America. About 4 in 10 25-year-olds have student loans, which is an increase of over 25 percent in 2004.
According to another report from Sallie Mae, a student loan company, about 50 percent of families who have children are not saving enough money for college; a drop from the numbers in 2010 where 60 percent were saving money. And, even the families saving money are not meeting their goals.
The study shows that most families want to save $40,000 for their child’s college education. However, they only save about half of the amount.
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