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The Student Loan Debt Bubble - Infographic

Aug 14, 2012

Student debt is now at 1 trillion dollars. Compare that to credit card debt which is only at $801 billion according to the Federal Reserves G.19 report for February, 2012. The default rate for credit cards is 11.37% while the default rate for student loans is 14.4%.

88.8% of student loan debt is less than $50,000. While almost half of debt that is carried is under $10,000.

Is this really a bubble about to burst?


Because of the housing crisis bubble we tend to see bubbles in everything around us. We are quite aware and sensitive to the specifics of our economy like never before. Admittedly, such high levels of debt in this weak economy could push the student loan problem over the cliff. But at the moment, student debt is being paid back in a reasonable fashion.

This potential bubble is still just talk, today. But debt even in the best economy is risky. It's possible to acquire large amounts of debt and not be able to make your payments because of job loss, sickness, or other unforeseen incidents. It is much better to save for education costs ahead of time with a 529 plan. Going to a inexpensive school or working your way through school makes more sense. We take debt to lightly, it's to easy to acquire and your only a few steps from defaulting on it.

The following infographic courtesy of CreditSesame.com explains the facts and figures and where we could be head for in the future.





Get your free credit score at CreditSesame.com


Got further questions? Catch me on twitter and DM me @529SavingsPlans or e-mail me at 529CollegePlans at Gmail.comWant to be heard? Leave a reader comment below.

6 comments

  1. Top rated blog. Student loan is good for poor students to carry on theirs' study. But Home Is Your Security against the loan.your home equity is secured by the equity value of your home; you could potentially lose your home if you default on your loan payments. Hence, the poorer students may not be qualified of getting it. thanks for sharing!
    Good Day :)
    Maria C.

    ReplyDelete
  2. There are a lot of options if not to avoid, at least to lessen student loan, like scholarships and grants, very often the only thing students lack is persistence. For the temporary cash difficulties you can always go here, but there were cases when young people managed even to earn money while studies.

    ReplyDelete
  3. Credit card is a boon for college students, at least this is what I believe. But I have also seen such instances where people go bankrupt due to misuse of credit cards. This is just because of using it without knowing all the clauses and conditions. long term installment loans

    ReplyDelete
  4. Fantastic blog. It's ridiculous how expensive higher education is in America but at the same time some of these people are just being willfully ignorant. You signed on for the loans, you should have read the fine print and figured out how much you'd be paying back once you graduated. It's called being a responsible adult, and yes, you are an adult if you're in college. thanks a lot!~ Tina West

    ReplyDelete
  5. In reality, the smartest way to graduate from college student loan debt-free is to combine these three tactics: work, get scholarships, take advanced classes in high school. By tackling the problem from all sides, you can lower the amount you have to pay, and then leverage working and scholarships to pay for it.

    Don’t just assume that student loans or lakota cash loans are the only way to pay for school. You can graduate from college student loan debt-free!

    ReplyDelete
  6. If you feel hesitant to apply for a short term loan, then it will be a relaxing experience to click pay-day-loan.co.za, because they ensure that no documents will be needed while submitting an application. So, what are you waiting for?

    ReplyDelete

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