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A Generational Approach of College Student Debt in America

A Generational Approach of COLLEGE STUDENT DEBT in fAmerica GRANDPARENTS (1940s-1950s) 186,500 1940 graduated in 1940. 109,546 male. were 1960 432,058 graduated in 1950 In 1940, less than 5% of adults 25 and older had a college degree. By 1960, this number had increased to a whopping 8%. 328,841 were male. THE SERVICEMEN'S READJUSTMENT ACT (GI BILL) of 1944, allowed a large number of WWII Veterans to enroll in college using benefits from the government. By the late 1940s, almost half of all college graduates were veterans, meaning there's a 50/50 chance your grandparents graduated with little-to-no student loan debt. In 1940, the tuition for an average undergraduate student at Yale was $450. Taking inflation into account, that $450 was actually worth about $7200 in today's currency. Federal student loans were $7,200 first offered in the 1950s under the NDEA (National Defense Education Act ), in response to the USSR's launch of Sputnik. $450 1940 2013 PARENTS (1970s-1980s) 839,730 students received their bachelors degree by 1970 475,594 were male TUITION FEES IN THE 80'S Yearly Fees for a 4-year Institution AVERAGE YEARLY TUITION $3,449 $9,733 in 2013 FOR PUBLIC INSTITUTIONS i$2,550 $7,196 in 2013 FOR PRIVATE INSTITUTIONS $5,594 $15.786 in 2013 Most federal aid was provided in the form of grants (68%). On average, a Pell Grant would cover about 2/3 of tuition costs. In the late 1970s tuition costs began a steady rise, with even larger yearly increases by the 1980s. At the same time in the 1980s, government funding began to decline, YOU (2000s-2010s) • 1980 • Today 600% 500% II II 325% TUITION COST OF LIVING MEDICAL EXPENSES In 2012, the most expensive school was Columbia University at $47,426/ year, which means a 4-year education would cost $189,704. For same amount in the 1940s, you could have attended Yale for 27 years 222 Out of the nearly 20 million Americans who attend school, 12 million (60%) use some form of student aid to pay for school. $800B $850B In 2010, total student loan debt reached $830 billion, while credit card debt "only" reached $825 billion. Student loan debt overtook credit cards as the 2nd largest debt source in the U.S. This year total student debt will reach $1 trillion and is expected to continuing growing at a rate of 10% per year. Per student, the average student debt in 2012 was $25,000 37 MILLION carry student debt – that's 1 out of 10 Americans! LOAN DEFAULTS I12 1.7 The default rate for The default rate for federal loan borrowers. private schools. 3. 30 10 OUT OF borrowers have payments at least 30 days passed due. Defaults can trigger reduction in Social securi- ty or retirement benefits benefits, as well as wage garnishment. Student loan debt cannot be discharged through traditional bankruptcy. Your grandparents and parents certainly had it easier, right? As of 2012, 53% of recent graduates were unemployed or jobless. ... But wait! ·.. Almost 2 million people over 60 are still paying off their student loans. Walmart* O TARGET As for your parents? One third of student loan borrowers are A recent study of 4 million Facebook profiles showed the biggest employers of twenty-somethings are Walmart, Starbucks, Target, and Best Buy. Real wage earnings are lower than they were throughout the 1900s. over 40. = 100,000 people over 60 YOU & YOUR KIDS On average, if you are a student who is completing a 4-year undergraduate degree, you are about to graduate with... 6.8% Standard Stafford interest rate $25,000 in debt T you pay (S) $150 $200 /month /month every month every month your debt will be paid off in 42 8. 18e 3 years months years months and you will have paid total interest of - $51,000 $18,000 double your initial debt nearly 2/3 of your initial debt Just in time to start getting ready for your children's payments, which will be... 6.5% II II || || || Based on current inflation rates, by 2030 tuition for public institutions will be between $41,000 to $50,000 П! $92K .... to .... $71K ..... to... $110K $85K 4-year private school 4-year out-of-slate public school A FULL FOUR YEARS COULD SET YOU BACK AS MUCH AS $414,000 Start saving now Tosend your child to a state university, you'd need to save $821.10to a 529 saving plan or other college fund each month. * $812.10 * SOURCES http://www2.census.gov/prod2/statcomp/documents/1960-03.pdf http://www.learnnc.org/lp/editions/nchist-postwar/6023 http://www.archives.upenn.edu/histy/features/tuition/1940.html http://research.stlouisfed.org/publications/es/13/ES_14_2013-05-30.pdf http://en.wikipedia.org/wiki/File:Inflation TuitionMedicalGeneral 1978to2008.png http://www.utne.com/politics/student-debt-zm0z12jazwar.aspx?page=2#axzz2WVfTDAzS http://money.msn.com/college-savings/what-college-will-cost-in-18-years-cnbc.aspx http://costofcollege.wordpress.com/2012/09/03/will-a-year-of-college-cost-100000-in-18-years/ BROUGHT TO YOU BY CONSOLIDATED CREDIT When debt is the problem, we are the solution. %24

A Generational Approach of College Student Debt in America

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Student loan debt is one of the biggest problems plaguing our country today. With an unstable job entry market, rising tuition costs, and increasing interest rates from the government, many young stud...

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