, the student debt in the United States has surpassed the 1.2 trillion dollar mark,
and the media is bringing attention to the “issue” and even prompting congress to jump into the arena.
Students are borrowing more to
pay for their higher education. Also, some students have enrolled in obsolete programs without job opportunities upon graduation. Art appreciation is tuff to find a job in.
A chasm between the boomers and the millennials regarding responsible borrowing. Since the end of the Bush years and the entirety of the Obama administration, the debt crisis has ballooned into huge numbers that seem so large that some experts claim the “bubble” could burst at any time.
The National Conference of State Legislators (NCSL) reports that an estimated 1.85 million people will graduate this year with a Bachelor degree. Tuitions at four-year institutions have risen 112% since 1990, while state funding has fallen 10.6 percent nationwide since 2008 says the NCSL.
The average comes out to be about $26,500 a person for 2013-2014 graduates. Just a decade ago, student debt was at around $253 billion, while it now sits at $1.2 trillion and climbing—that is an increase of 300% since 2003.
Some experts claim the “crisis” will be a giant drag on the economy as the student debt is now well beyond the national credit card debt of around $683 billion. They are worried the economy will not thrive as younger people with massive school debt will not buy big-ticket purchases, such as cars, houses and investments.
In April, members of the U.S. House Education and Workforce Committee and eleven U.S. senators jointly introduced legislation that would allow the 40 million Americans who are carrying $1.2 trillion in student loans to refinance their debts at today’s lower interest rates. A current U.S. law prevents student debt to be refinanced at any time.