Student Loan Debt Passes Credit Card Debt

Student loan debt has increased exponentially in recent years, exceeding credit card debt for the first time in U.S. history. As more students go to college and have a higher rate to borrow money to pay tuition and related costs, the collective debt is likely to continue to grow.

According to an article in The New York Times, studies show that by 2008, two thirds of undergraduate students graduated with some kind of debt. In 1993, this percentage was less than 50. Average debt last year was $ 24,000 and is likely to increase as the default rates continue to rise.

"Our children are leaving Geneseo with nearly $ 20,000 debt," said Archie Cureton, director of financial aid. "Each year, the debt [] goes a little; Wherever moderate increases."

With increased loan limits, students are borrowing more, Cureton said. The only way to get around the increase in student debt is for parents to take more responsibility. The opposite, however, seems to be happening more often. Loans in the name of the parent typically require that the parent company to begin making payments while the student is enrolled in school, and many choose alternative options.

Private or alternative loans, which are made under the name of the student to co-sign a parent, be postponed until the student graduates. According to Cureton, these private loans have become a growing trend that eventually leaves students with more debt.

The effects of student debt is very widespread. According to Article Times, economists are worried that the stories of unemployed graduates with mountains of debt might discourage prospective students from college.
For graduates, debt sometimes means a delay in the transition from adolescence to adulthood. Graduates are more likely to move back home after school and often takes more time to become financially independent. With unemployment so high, the debt has become even more intimidating.

Although the problem grows, some Geneseo students are able to mobilize the relatively low fees of the State University of New York system in combination with part-time employment and scholarships in order to avoid excessive accumulation of debt.
"I have a fair amount [of debt]. There is looming ahead, but do not consume my thoughts, the words" senior Ashley Tinney said. "I [resident assistant], so it should not be too bad. "

«Geneseo is a great value," said senior Laura eble. "I will not be in so much debt as it would be a private school, so I’m not too worried."

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About defaultprevention

Default Prevention Specialist since 1998.
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