October 25, 2011 Leave a comment
USA Today recently dropped a headline bombshell. Student loans taken out last year topped $100 Billion last year (first time this has happened). In addition to that staggering number, a Federal Reserve report indicated that total outstanding student loans are about to exceed $1 Trillion. (That figure is higher than Americans, the credit society, owe in credit card debt.)
Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports. Total outstanding debt has doubled in the past five years — a sharp contrast to consumers reducing what’s owed on home loans and credit cards.
The amount of student loans has continued to increase as the cost of college education continues to skyrocket. But, one student warns, today’s lending with have long-lasting effects.