Local Voices: Student Loan Debt—Who Really Pays?

I read in a Wall Street Journal blog this a.m. some interesting stats...

The jump in the measure of consumer credit held by the government comprised primarily of student loans since 2007:  368 percent. Did you know that nearly 10 percent of the debt in this country is STUDENT LOAN DEBT?  It is old news that student loan debt has surpassed consumer credit card debt.

WOW!  I had a single mom at our office door today stop by.  She told me that her son got a great award from a small private Christian college, but that "he has chosen Colorado State".  When I reminded her that she is the one writing the check, she looked as if she had no control over her own situation, and was resolved to go into massive debt. So while this single mom seeming had no issues taking out about 30k per year in loans, if you multiply that by six years or more, then the payment on that will be about $2,000 a month.  For the next 10 years after he graduates!

Single parents...please don't let emotions dictate such a weighty financial decision.  Statistically, over 30 percent of college students don't return to the same college for their sophomore year.  By the time the student does graduate, their degree is from the third college they have attended.  The average time it takes to get a 4-year degree is 6.5 years.  (The public colleges are the ones dragging down the averages). 

The default rates on student loans are at an all time high, and so is unemployment for 25-34 year olds.  And guess who is going to be holding the bag when the bubble burst...the same ones who always hold the bag. The taxpayers.

Tell all your friends about our next seminar at our office in the harbor on July 14 at 9 a.m.  There will be a chance to win a $1,000 software package.  For free seminars, WEBinars and useful tools to help guide the college planning process, please go to GetCollegeFunding.org, and sign up for our "7 Mistakes Most Parents Make When Planning For College".