"Outstanding student debt crossed the $1.5 trillion mark earlier this year, which leads many observers to believe that new college graduates are struggling under ever-increasing levels of debt. But at least part of that perception is inaccurate. Between 2012 and 2016, the typical debt burden for a new college graduate barely increased at all," Preston Cooper writes in an opinion article for Forbes.
"The median borrower who graduated college with a bachelor’s degree in 2012 had around $28,900 in debt (in today’s dollars). Fast-forward to 2016, and that number has barely budged. Students who graduated college in the year of the Rio Olympics owed $28,923, a statistically meaningless increase.
Yes, you read that correctly. Median student debt for new college graduates between 2012 and 2016 was essentially flat.
The picture looks slightly worse if we only consider federal student loans (ignoring those from state or private sources). Between 2012 and 2016, median federal student loan debt at graduation edged up from $26,759 to $27,720—an increase of less than $1,000. No matter how you slice the data, though, undergraduate student debt has not become substantially more burdensome since 2012."
NASFAA's "Headlines" 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.
Publication Date: 5/18/2018