Mounting student loan debt concerning college students in America

NEW BRUNSWICK, NJ — As college students around the country head back to school, many of them are borrowing money to finish and get their degrees.

According to the board of governors of the Federal Reserve System, student loan debt is at an all-time high in the U.S., at $1.6 trillion — which is twice what it was a decade ago.

Across America, it’s estimated that the average borrower has more than $37,000 in debt, while more than 2 million student loan borrowers owe $100,00 or more — and these figures continue to rise.

At Rutgers University in New Brunswick, 53 percent of incoming students take out a loan to help defray freshman year costs, according to College Factual, a higher education data analytics and research company.

According to the Pew Research Center, about a third of young graduates with bachelor’s degrees believe the cost of getting their education was not worth the benefit.

But the center also found that young college graduates with student loans are more likely to live in a higher income household than those without a bachelor’s degree.

For many young adults, they have no choice but to get student loans — and with Gen-Z making up 37 percent of the electorate, an affordable education is an important issue for the 2020 U.S. presidential election.

Several Democrats have pitched plans to forgive debt altogether.

“It might increase the purchasing power of the families who would be given the forgiveness of the loans, but the main thing here is it’s insufficient and it will be unfair. Why do I say that? Because someone has to pay. If the families don’t pay those students loans, it has to come from somewhere, it has to come from taxes or it had to come from anything.”

According to the Institute for College Access and Success, student loan debt is now the second-highest consumer debt category – behind only on mortgage debt but higher than both credit cards and auto loans.

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  • Mario
    13 September 2019 at 6:04 am - Reply

    Student Loan used to be from the bank to qualify, every semester the bank monitor the Student grades. Then on 2010 Obama passed the Health Care & Education Reconcilliation Act (HCERA), all new Federal Loan except for Perking Loan would be directly for Government to Student. Government took over the management, student loan interest expenses sky rocketed. Private Bank are OUT. Today Student loan debt is $1.6 Trillion, it is not all from student loan, it also include Government Administrative fees.Best solution is let the private sector bank run the student loan, the Gov’t will pay the bank for the closing fee-service fee NOT the student.