The amount of student loans made last year exceeded $100 billion for the first time and is on its way to the $1 trillion mark.
Here's some troubling facts from the USA Today article:
- Americans now owe more on student loans than on credit cards
- Students are borrowing twice what they did a decade ago after adjusting for inflation
- The default rate (borrowers more than nine months behind) rose from 6.7 percent in 2007 to 8.8 percent in 2009.
A generation of wage slaves? Perhaps. This means young students will be starting their adult lives with a hefty amount of debt to repay. For those who are returning or have returned to the university for retraining or a career change means having to take on more debt.
Editor's Note:
With the tuition hikes all across the country this is obviously just going to get worse but those who are college bound should take some responsibility in making wiser decisions in terms of school of choice as well as the major you're pursuing. A more prudent approach to your process of selection should help you save cash overall. Consider taking your basic courses at a junior college then transfer into a 4 yr school. Do some research on your chosen major first such as job market outlook (there's never a guarantee of employment but you should still be as informed as possible).
