Blog | Personal Finance

The Next Bubble: Student loan debt now outranks credit card debt

Read time ...

meet your own rich dad - start your quiz now

According to the WSJ article of August 9th, the average undergraduate loan debt, now stands at a whopping $30,500 (pre-interest). This is due in part to people seeking more education and retraining as well as some students opting to remain in college longer to avoid poor job prospects. College enrollment has tripled over the past four decades, “demand [for student loans] is driven by the cost of education, which has grown at an extraordinary rate over the past three decades.” Based on Consumer Price Index data, the cost of tuition and fees has more than doubled since 2000, and has outpaced inflation across all goods, health care, housing and energy.

Youth unemployment, estimated at nearly 20% among those under the age of 24 has been much higher than the rest of the workforce — creating an even more pessimistic outlook for student loan repayment. The share of federal student loan defaults rose sharply last year, especially at for-profit colleges and universities, where 15 percent of borrowers defaulted in the first two years of repayment, up from 11.6 percent the previous year.

Original publish date: May 31, 2012

Recent Posts

The Entrepreneur's Exit Strategy
Entrepreneurship

From Rat Race to Financial Freedom: The Entrepreneur's Exit Strategy

Discover the B-I Triangle system that creates passive income and true financial freedom for entrepreneurs.

Read the full post
BlackRock’s $100 Billion Crypto Bet
Cryptocurrency

BlackRock’s $100 Billion Crypto Bet

BlackRock now holds over $100 billion in cryptocurrency, with Bitcoin dominating its portfolio. Here’s what this means for investors, the potential upside, and the risks of having Wall Street in crypto.

Read the full post
Andy Tanner's Proven Stock Market Strategy for Financial Freedom
Paper Assets

Andy Tanner's Proven Stock Market Strategy for Financial Freedom

Rich Dad stocks and paper assets expert, Andy Tanner, has spent years showing people exactly how to escape, and today we're going to share his proven blueprint with you.

Read the full post