Increasing Student Loan Debt Pose a Huge Burden

College tuition fees are costly and difficult to afford. Because of this, students have an additional burden to carry aside from the classes they take and finishing school.
The amount of debt from student loans is now greater than the total debt from credit cards in the entire United States. This means that before even graduating, students have already created a hole and a burden in their finances.

According to the associate professorof Ohio University, Deborah Thorne, the problem is partly due to the bad economic condition.

Česky: Kreditní karty Deutsch: Kreditkarten En...

Image via Wikipedia

She said that when the economy goes down, more people go back to college hoping that they will have better work opportunities. Consequently, an increasing number of people go back to school. However, more than this, the bigger aspect that contributes to the problem is the unaffordable tuition rates that are not proportionate to the income.

She said that around 30 years ago, tuition costs were less than $200 every quarter. During that time, the parents of college students can work over the summer and can already afford to pay for their child’s education.
However, the situation is different today since there are students who need to go back to their homes since they cannot find work. Huge student loans are also causing other setbacks as well.

Thorne says that high debts in student loans can affect people during their entire lifetime. It will lead them to postpone their plan to have a family or purchase a home. They will also be forced to decrease the amount they contribute to their retirement account. Some may not even be able to send their kids to college since they were not able to save enough money to settle their personal student loan.
Thorne added that the average debt in student loans is about $25,000.

Enhanced by Zemanta
Share and Enjoy:
  • Print
  • Digg
  • Sphinn
  • Facebook
  • Mixx
  • Google Bookmarks
  • Blogplay

Related posts on loans for people with bad credit:

  1. Student Loan Debt Taking Over Mortgages Credit Cards and Car Loans The Continuous Increase in Student Loans Americans are accumulating more debts for college payments. This is the case despite records showing that in the past three years, they have been cutting on other types of loans such as mortgages, credit cards…...
  2. 8 Ways to Pay Off Student Loans Debt 8 Ways to Pay Off Student Loans Debt Research conducted recently by the National Center for Education Statistics (NCES) shows that 50% of recent college graduate have student loans, with an average student loan financial debt of $10,000. The normal cost…...
  3. Increasing Student Loan Debt Increasing Student Loan Debt Most recently, a report showed that there is an increase in terms of the debt load of both college students and college graduates. Specifically, the report according to the Federal Reserve Bank of New York states that balances…...
  4. How to Get Student Loans When You Have Bad Credit How to Get Student Loans When You Have Bad Credit Having a degree is a high guarantee that you can have a better future, and money will be the least of your problems. However, the decision of going to college rests…...
  5. College Graduates in Danger of Not Getting Jobs Because of Student Debt College Graduates in Danger of Not Getting Jobs Because of Student Debt If you recently graduated from college, you more likely have a student debt of at least $25,000 and looking for a job. Those without a degree are instantly disqualified…...

Tagged with:

Filed under: Student Loans

Like this post? Subscribe to my RSS feed and get loads more!