Student Loan Debt Higher Than Credit Card Debt
The Wall Street Journal reports this week that Americans owe some $826.5 billion in revolving credit, most of which is credit card debt.
But if that number seems high, brace yourself, because student loan debt has passed credit card debt.
Americans owe $829.785 billion in student loans.
At a time when both tuition and unemployment are at an all time high, it looks like you’ll be paying for your college education much longer than you’ll be paying off your credit card.
The growth of student loan debt is due to several factors:
Typically, loans can’t be cleared through Chapter 7 bankruptcy. While filing bankruptcy, debt settlement and credit counseling may help with most types of debt, they rarely will help you with student loans. In fact, an open letter from Student Loan Justice reports that because of the inability to default on these loans, the government is making money on student loans at a rate of 123 percent.
Student debt isn’t as widely broadcast as credit card debt.In an unscientific study by SLJ, “media coverage of credit cards exceeds coverage of student loans by a factor of approximately 15 to 1.” People are more aware of their credit card debt, and are therefore more apt to pay it down.
College costs are on the rise. At state and private institutions the cost of college continues to go up. The average bachelor degree graduate owes about $23, 186 in loans, reports MSN Money Central
So what can you do to keep the lid on your student loan debt? Here a few suggestions:
- Think in terms of value, not prestige. Big name schools aren’t always worth the extra price tag, particularly if you’re going into a field that isn’t a guaranteed earner. You can get a great education without going to Harvard or Yale. The name of the school isn’t important, it’s all about what you learn there. You may be able to get some general education requirements cleared cheaply at a community college. Explore scholarships and in-state tuition offers, as well as the Princeton Review’s Guide of Best Value Colleges.
- Get a job. On average, most students with a part-time job in college have higher grades than those who don’t. Most colleges have a student employment programs that works with your school schedule and your talents. A little antisocial? Plug in your headphones and wash some dishes. Need an audience to be truly happy? Become a campus tour guide.
- Look for scholarships: Scholarships go to stand out students, but that can mean different things on different campuses. Look for schools where your special talents and background are in demand, and look at their scholarship and merit aid offerings.
In the end, you’re responsible for your student debt, so start deciding how you want to pay it off now so that you can avoid being a slave to loan institutions forever.
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