Student loan debt has now surpassed total credit card debt in the U.S. This year’s graduates have the highest average debt to date, and former students across the U.S. are expected to owe a total of more than $1 trillion this year.
Student debt has been on the rise since 2008. The cost of attending college has gone up nearly 47% in the past decade, even when you take inflation into account, and the costs of everyday goods and services has risen. College seniors who graduated in 2009 carried an average of $24,000 in student loan debt and tuition rates are expected to more than double at many colleges across the U.S. this year.
Despite the increasing debt load on recent grads, it is still considered a wise decision to seek out higher education. Having a degree greatly increases your chances of landing a job and in the current economy you need every advantage that you can get. College graduates are more likely to get a job over someone with just a high school diploma, and usually a better paying one. On average, an Associate’s degree means someone will earn a 30 percent higher income and a Bachelor’s degree equals about 75 percent more income than someone with just a high school diploma will earn.
It seems these days, that American students have the choice of taking on a mountain of debt early in life or being stuck in poverty for the rest of their lives. Those who end up dropping out of school for financial reasons sometimes end up saddled with both which is why it is crucial that parents start saving up for their children’s college education early.
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