- April 5, 2022
- Posted by: Shane Cummiskey
- Category: News
Student Loan Debt Crisis Statistics. It is vital to secure your financial future in the age of Covid-19, high gas prices, inflation, debt, and wars. The first step is to assess your budget.
Knowing your spending habits and obligations will help organize your money flow. Once you know where your income is being spent, this will help you settle your debts.
Many Americans suffer and live with debt. Auto, mortgage, medical, credit card, and student loan debt are just a few examples. This debt combination contributes to a stressful lifestyle and hinders economic mobility.
However, getting your student loan debt in financial order is very possible and very important mainly because student loan debt is complicated and it is generally futile to declare bankruptcy on student loans.
The student loan debt crisis continues to spread like a plague across America. Whether you are a current college student or a student who graduated years ago, you feel the effects of this debt. This debt is not leaving anytime soon unless you seek help to manage your student loan repayment.
This is where Hope Credit can help you combat your student loan debt, which will assist you in managing your other financial obligations. According to some current statistics regarding student loan debt:
The Average Student Loan Debt
The average student loan debt continues to climb in America every year. In 2021, the Federal Reserve published a report that Americans owed about $1.75 trillion of student loan debt in the 4th quarter.
One of the main factors is the cost of college tuition, which has been increasing yearly. According to the Bureau of Labor Statistics, from 2006 to 2016, the cost of college increased by 63% in that ten-year period.
The rising cost of college year over year is causing a financial burden on students who want to receive an education.
According to educationdata.org, students that choose a federal loan paid an average cost of $36,510. In contrast, students that prefer a private loan paid $54,921 on average. For students that pursued a bachelor’s degree, the average price was over $30,000. For a student that attended college 20 years ago, half of those adults owe an average of $20,000 on their student loan debt. These statistics are from the year 2020. However, the cost of college will continue to increase based on current trends and inflation. Younger generations who want to enroll in college should expect to pay more to attend. Past generations are already feeling the effects of student loan debt.
For example, the adults that owe the most in student loan debt are 35-year-olds. The average student loan debt for that age group is $42,600. Adults that hold the most student loan debt are 39 years of age and younger, while people 40 years old and over carry less student loan debt. For adults age 30 years and younger, 17.3 million have student loan debt. Of the adults in their 30s, 12.1 million have student loan debt.
For the adults in their 40s, 6.8 million have student loan debt, and for adults in their 50s, 5.2 million have student loan debt. The younger generation holds more student loan debt compared to older generations.
Data Source: Enterprise Data Warehouse (studentaid.gov)
The student loan debt crisis will continue to be a problem in society. One of the main reasons student loan debt will continue to be an issue is that most corporations require a 4-year bachelor’s degree to secure a meaningful position within those corporations that can result in a career. The 4-year bachelor’s degree is becoming the standard requirement for many industries.
It is crucial to choose the right degree that will pay well and has many career opportunities. Selecting the wrong degree or not completing your degree can bring financial hardship.
As a result, the cost of college is not going down anytime soon because students want to receive their degrees. The price can vary depending on what degree you. Not all degrees are equal. For example, an English degree might cost less than a Legal Studies degree. However, a Legal Studies degree might pay more than an English degree, which affects how much a borrower can pay back on their loan.
The other factor is supply and demand. Many people are willing to pay the costs set by the universities to attend the college. As long as demand continues to meet the price points set by universities, those universities will have no incentive to lower their prices.
Even during the pandemic of 2020, many universities choose not to cut tuition. As long as people are willing to pay the price, many students will need a loan to pay the cost of college. Before attending college, it is vital to choose the right college for you by employing the concept of financial planning.
On the other hand, if you are already graduated from college, you may still be feeling the pain of student loan debt. It is essential to factor in all of your fixed expenses. Then assess how much income you are generating?
Once you know your costs and how much income you produce every month, it is time to consider student loan consolidation and income-based repayment plans as financial tools to help manage your debt.
Once you have chosen the right college to meet your education goals or have graduated college and want to refinance your student loan, call Hope Credit at (877) 573-6462 or email email@example.com.
Hope Credit will assist you with federal student loan plans and student loan debt management.
Hope Credit will help find loans with a more considerable interest rate and the possibility of a loan with eligible refinancing.
Student Loans Owned and Securitized
Educationdata.org Average Student Loan Debt
Educationdata.org Average Student Loan Debt By Age