The State Of Student Debt

THE STATE OF STUDENT DEBT WITH THE AVERAGE STUDENT LOAN DEBT AT AROUND $20,000 FOR PUBLIC UNIVERSITIES AND $28,000 FOR PRIVATE UNIVERSITIES, DO STUDENTS KNOW WHAT THEY ARE GETTING THEMSELVES INTO? WE TAKE A LOOK AT THE DETAILS OF STUDENT DEBT AND LOANS. WHO'S BORROWING THE MOST? - INCOME FEDERAL STUDENT LOANS LESS THAN $20K DEPENDENT STUDENTS (PARENTS INCOME): $20K - $39K $40K - $59K $60K - $79K $80K - $99K OVER $100K $2,000 $4,000 $6,000 $8,000 LESS THAN $1OK $10K - $19K INDEPENDENT STUDENTS $20K - $29K $30K - $49K OVER $50K ADDED DEBT: 84% OF UNDERGRADUATES ON COLLEGE CAMPUSES HAVE CREDIT CARD DEBT. STUDENT LENDING BY YEAR $100 PERKINS LOAN UNSUBSIDIZED STAFFORD SUBSIDIZED STAFFORD PLUS LOAN $80 $60 $40 $20 - - 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 ADDED DEBT: $4,100 BY GRADUATION, SENIORS AVERAGE IN CREDIT CARD DEBT. STUDENT LOANS & INTEREST RATES TODAY'S LOAN TYPES & INTEREST RATES LOAN NEED-BASED & SUBSIDIZED? SPONSOR BORROWER INTEREST RATE PERKINS YES FEDERAL GOVERNMENT STUDENT 5% (FIXED) SUBSIDIZED STAFFORD YES FEDERAL GOVERNMENT STUDENT 4.5% (FIXED) UNSUBSIDIZED STAFFORD NO FEDERAL GOVERNMENT STUDENT 6.8% (FIXED) PARENT PLUS NO FEDERAL GOVERNMENT PARENT 7.9% (FIXED) ADDED DEBT: DEST: $2,200 IS THE ESTIMATED AMOUNT OF EDUCATION EXPENSES STUDENTS PUT ON CREDIT CARDS, WHICH IS UP FROM $942 IN 2004. FIXED INTEREST RATE LOANS OVER THE YEARS 10% PLUS LOAN STAFFORD LOAN 8% 6% 4% 2% 92-93 94-95 97-98 00-01 03-04 06-07 09-10 SCHOOL YEAR STUDENTS TODAY INCUR A LARGE AMOUNT OF DEBT IN STUDENT LOANS. LOTS ARE IN OVER THEIR HEADS IN CREDIT CARD DEBT TO0. STUDENTS MUST MAKE SURE THAT THEIR EDUCATION DOLLARS SPENT ARE WORTH IT. IN THE END IT ONLY MATTERS IF YOU CAN GRADUATE, GET A GOOD JOB AND GET OUT FROM UNDER YOUR DEBT. SOURCES: NCES.ED.GOV, COLLEGEBOARD.COM, TRENDS-COLLEGEBOARD.COM, FINAID.ORG, USATODAY.COM, SALLIEMAE.COM (IN BILLIONS)