The Student Loan Debt Nightmare Continues
"[N]o matter what the interest rate, the debt keeps piling up. More students are borrowing to finance college degrees," VOXXI reports. Outstanding student debt hit $914 billion in 2012. That’s up nearly 280 percent since 2003. 14.4 percent of that debt is past due. Since students take out a new loan each year, the [Bipartisan Student Loan Certainty Act of 2013] mean graduates could have multiple loans at different fixed rates. Their monthly payment will be a weighted average of those rates, says Justin Draeger, chief executive of the National Association of Student Financial Aid Administrators. Student debt is now second only to mortgages as an overall household liability – eclipsing even credit card debt, which totals $672 billion. Student loans are also the only form of household debt that has increased since the recession. All other types have gone down. The average 2012 college graduate owes $28,720 in student loans. Repayment is a problem for some as entry-level jobs are scarce. 53 percent of recent graduates are either unemployed or unable to find full-time work."
NASFAA's "Financial Aid in the News" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.