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.
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.
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