Over the years, the tuition to colleges and universities has gone up significantly. The problem is that students that are graduating are not getting jobs. This leaves a high percentage of college students with student debt after college.
Experts say that tuition fees have tripled in the last 10 years. Wages are not going up at this rate, which causes a big problem. The average weekly earnings are not covering the average student loan debt.
Right now the total student debt has gone over $1 trillion dollars. This debt is growing like the national debt. Unless college tuition goes down or the average salary goes up, graduates are not able to pay off their large student debt.
Since this issue is not being addressed, multiple problems are taking place. It is difficult for a college graduate to get a mortgage at a low rate. Just the interest alone on the average college loan is over a thousand a year. The current interest rate is 5 percent.
College Student Debt: Increase of Negative Related Problems
This average student debt after college should cause current college students to avoid big student loans. It might be wiser to work while attending college or go to an affordable school. This will cause the tuition rates to go down if the enrollment is down.
One of the market experts, Mark Kantrowitz gives some good advice to potential and current college students. He advises to not accrue a debt that realistically is not going to be paid off. Depending on a student's major, would determine how much money they are likely to earn.
In the past, getting a quality education is considered to be a smart investment decision. However, in this economy, it may not be the best decision to get a large student loan debt built up. The money that is loaned to a student shouldn't exceed what he/she is likely to make.
There is actually no problem if you get right away your perfect and ideal job. But if you happen to land in a not-so-perfect job might again be giving you the struggle and continuous problem of paying your college student debt.
For those that graduate a university or college with excellent grades in a field that has high demand for hires, it might be a good decision to get student loans. The average student debt after college is astounding and this issue needs to be addressed.