Friday, November 16th, 2018
Category: Student Loans
Breaking Bad: Students and Student Loan Indebtedness
According to research, there are more than 44 million borrowers with $1.3 trillion in student loan debt in the United States alone. The average student for the Class of 2016 is $37,172 in student loan debt, making it the most student loan-indebted group of graduates since the creation of the federal student loan program. Borrowing by students and their families has only increased over the years as social and economic pressure has been instigated from the false belief that a college education is the only sole path to a career and livable wage. Borrowers now leave school owing on average about $34,000. That is up 70 percent from a decade ago. Loan delinquency climbed to 11.2 percent in the last quarter of 2016, the highest rate for all types of household debt. That means that student loan repayment is taking a back seat to other pressing financial demands, such as rent, mortgage payments, phone bills and credit card balances. As financial planners, counselors, and educators we must gain the knowledge, skills, and abilities to help students and families breaking bad - gaining freedom from ever-increasing and overwhelming student loan debt.
Questions or Implications for Researchers: What is the trend of student loan debt in this country? What are the ramifications of ever-increasing debt among college graduates? What are the long-term impacts on society from escalating student loan debt? What can be done to break the cycle of overwhelming student loan indebtedness?
*CFP Pre-Approved Session - 1 CEU