Student Debt in America

Student Debt in America CARD 10 00 5678 925 10 0 1 Student Debt Over Time 66% of 2010 graduates, graduated with debt Tuition is growing, Income is shrinking o Over the last 10 years, in-state tuition at public colleges and universities increased an average of 5.6% State Budget Cuts = per year Higher Public School Tuition Compared to 4.5% per year in the 80s and 3.2% per year in the 90s However, over the last 10 years, median family income has decreased on average of 8.5% per year Tuition & Income Growth since 1982-1984 500% College tuition and fees 400 Soaring College Tuition 300 200 Median family income College Tuition continues to grow faster than median family income. 100 l1982 - 1984 1990 1995 2000 2010 In the last 6 years alone, average student debt has increased by Average Student Debt Over Time 30% $18,650 $25,250 in 2010 And it continues to rise, exponentially in 2004 Average debt levels for graduating seniors with student loans 2 Where is the Debt? Average Debt by State Maine $29,983 Washington Maine Dakota Minnesota Montana Idaho Oregon South New Hampshire New York Lowa Utah Michigan $15,509 $29,598 $31,048 Wyoming Pennsylvania lowa Nebraska Ohio Nevada Delaware llinois Indiana Maryland Utah Colorado Virginia New Mexico Kansas California Missour Kentucky $16,399 North Carolina Tennessee Oklahoma Arizona New Mexico South Carolina Arkansas Alabama Georgia Louisiana Текая Hawaii Florida $15,550 Heat map of debt in the US $15k-$17k $17k-$20k $20k-$22k $22k-$25k $25k-$27k $27k & Above * 2010 data not available for North Dakota Average Debt by State (2010) Average Debt based on School Debt in Private and Public Institutions Highest Debt Schools Annual Tuition Lowest Debt Schools Annual Tuition 1 California Institute of the Arts $38,260 1 Augusta State University $17, 356 2 Cleveland Institute of Art $33,882 2 Lamar University $17,020 3 College for Creative Studies $31,440 3 California State University- Bakersfield $17,842 4 Alabama State University $14,244 4 Cameron University $11,198 5 Alabama A & M University $14, 115 5 Princeton University $37,000 6 Bowling Green State University $17,352 6 Coppin State University $9,982 3. 5 The Dangers of Student Loans Unemployment Rates Among College Graduates 8.7% 9.1% in 2009 in 2010 But college is still an advantage: 20.4% of non-college grads of the same age are unemployed (highest it's ever been) Private Student Loans are the Riskiest Type Lack of basic consumerprotections & flexible repayment such as: Unemployment deferment Income-based repayment Loan forgiveness programs Private loans cannot be discharged in bankruptcy VISA Uncapped variable interest rates as high as 18% Federal Loans: A safer alternative Federal loans offer: Can be Lower Interest No interest Easy Repayement based on until after Rates finacial need you graduate Students are not maximizing federal loans Many schools' financial aid offices are ambiguous and do not clearly and simply explain the eligibility, limitations and consequences of each type of loan. In 2008, less than half of private loan borrowers actually took out all they were eligible for in federal loans (43%) Also in 2008, ¼ of private loan borrowers took out NO federal loans. Mostly due to a lack of information 4 How to Reduce Student Debt Increase access to need-based student aid Require school certification of private loans 3: Less educational funding cuts Educational institutions should inform students of various forms of federal aid available to them before turning to private loans. Although only applicable to public schools, the more educational cuts there are in funding, the greater the tuition hikes, leading to more lending. Educational institutions should screen private lenders before recommending them to students, giving them better clarity and transparency of their options. Resources: http://projectonstudentdebt.org/files/pub/classof2010.pdf http://trends.collegeboard.org/downloads/College_Pricing_2010.pdf .-------