Student Loans Now Greater Than Credit Card Debt
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.
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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.
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Tagged with: College tuition • credit card • debt • Ohio University • student • student loan • Student Loan Network • United States
Filed under: Student Loans
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