College Loans Stay with Graduates

San Francisco, CA (Collegetocareers.com) – For the first time ever, the level of college debt per capita exceeded the level of credit card debt for Americans nationwide.  College loans are being taken out at a high rate and students are faced with the challenge of paying them off for years to come.

The New York Times reports that over two-thirds of graduates with Bachelor’s degrees accumulated more debt than their 1993 counterparts – a striking contrast that leaves indisputable the rate at which debt continues to accelerate for Americans nationwide.

Economists hold that the increasing levels of student debt represent a positive trend, since it means that more Americans receive more and sometimes better education than Americans of years past.

College debt increasingly also looks like good debt, offering stark relief to forms of bad debt, such as credit card debt.

Others, namely analysts and policy wonks, claim that this is a deeply pervasive trend that will leave millions of Americans with expensive degrees worse off than their parents and others before them.

Analysts suggest that the weight of burdensome college debt impacts the financial choices and decision-making models for a household. In other words, some debtors find themselves choosing between the promissory note for a mortgage and payments for college debt. Others find the issue much starker when it comes to basic needs, such as food and energy prices.

According to The New York Times, college students today will continue to pay off their school loans even when their own students are ready to leave for college.

The article goes on to report that students who take out loans for private and for-profit colleges face steeper debt levels than their counterparts at state universities and colleges.

Overachievers who attend these larger, private universities often find themselves at a loss in a stagnant economy, much like the one the United States continues to struggle to overcome.

Still, the power of a college degree is one that yields continuing returns on the initial investment. The New York Times reports that college graduates continue to earn more than their counterparts, who possess only high school diplomas – a staggering millions dollars more on average.

What do you think? Is college debt a plus or negative, and does it impact your decision about whether to move forward with an education? Feel free to leave your comments below.

For more information on school loans, visit our Student Loans page.

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Tags: College debt, college loans, loans for college, school loans, student loans

2 Responses to “College Loans Stay with Graduates”

1. business says:

   April 20, 2011 at 2:57 am

   Its pretty difficult for students going back to school to avoid incurring some type of student loan debt along the way which makes many people wonder is the debt worth the education?Well according to a 2007 College Board Study Education Pays individuals with a bachelors degree earn at least 60 more than those with only a high school diploma. This beats out the debt that the average student is set to incur which is said to cap out at 29 000 for undergraduates.In other words the debt appears to be worth it.
2. Charlsie Lapeyrolerie says:

   March 22, 2012 at 4:13 am

   I’m not sure I agree with everything you said but nonetheless a wonderful post.