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Subscribe to RSSForty percent of U.S. households headed by someone younger than age 35 owed student debt in 2010 – double the percentage from 20 years ago, according to a new Pew Research Center analysis that found a record one in five households hobbled by student debt.
“We know the total amount of student debt has been rising, but what this study does is help us get a handle on who owes it,” said Richard Fry, a researcher with the Pew Center.
Outstanding student loans have topped $1 trillion, and rising tuition costs have spurred colleges and students to call for reforms.
“It’s been a hard labor market for everyone, but particularly for 18- to 20-year-olds, who have not been able to find work or find work in their qualified field,” Fry said.
View the Pew Research Center's complete report (Pdf)
Households headed by someone younger than age 35 have by far the highest share of the debt among the age groups, Fry said. He said 70 percent of the total debt was owed by households headed by those under age 45.
Among households owing student debt, the average outstanding student loan balance edged upward to $26,682 in 2010 from $23,349 in 2007, data show.
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Fry said incidence of student debt increased in nearly every demographic and economic category since 2007, but households with incomes less than $21,000 were hardest hit.
“While households with higher incomes also had student debt, they were able to shed other debt obligations,” he said.
Other key findings:
- In 2010, nearly 90 percent of the debt was owed by households whose head had completed at least some college education and almost 70 percent was owed by households whose head had finished college.
- In 2009-10, 51 percent of full-time, first-time undergraduate students had a student loan; that was up 43.5 percent in 2006-2007.
- Most debtor households had less than $50,000 in outstanding student debt in 2010, but the share of households owing elevated amounts increased. For example, in 2007, 10 percent of student debtors owed more than $54,238. By 2010, 10 percent of student debtor households owed more than $61,894 (figures are adjusted for inflation).
The study released is based on the Survey of Consumer Finances, conducted every three years and sponsored by the Federal Reserve.
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under bishop polygamist , student loans would be done away , and plantations would be built for the uneducated. you would have to ask his administration '' what plantation they want you to work in.
I have always said he really does not want to be president; what he wants is to be KING.
The more people that hold a Bachelor's degree the less value that degree holds. I have seen so many job requirements that say "masters degree preferred". Yet those jobs don't necessarily pay what you would expect if you had a Masters. What ever happened to training and apprenticeships? So many jobs are trainable.
No employer these days will ever “pay” you for your degree. In the old days, you were actually paid for your degree.
I did payroll for 25 years, so I have a good grasp on wages. Sure there is a difference on how much a high school graduate makes and how much a trade school graduate makes and how much a college graduate makes, but it is not that different, unless you are a doctor or a lawyer. I always told my kid that she needs to go to college, but that it would NEVER be on student loans; ever!!!! If it takes her three times long to graduate, so be it. I garnished wages for student loans. Big student loans for meager wages. If you are going to college on student loan your likelihood of recouping it in wages is minimal at best. Wages have stagnated for at least ten years, do to the rising cost of health insurance premiums for employers (18% to 20% per year); the money has to come from somewhere. Health insurance will soon cost as much as your monthly rent or mortgage. One lady owed $75,000.00 dollars in student loans and was making $8.00 an hour and she would have been 102 years old before she paid it off. Employers want a college education, but they will not pay you for it.
i went in the military and recieved my education that way and the rest of the whinning little babies can do the same thing but obame keeps on promising the leaches that they can continue to leach off the tax payers
I am a parent of a student who tried to get Sallie Mae loans on her own, however she was denied. We were required to co-sign. Is this the norm? I'm concerned that it will somehow effect us if we ever need to take out a loan. Does anyone know the answer?
You are responsible for the loan.
yes it affects you anytime you cosign it goes on your credit
Since no-child-left-behind has been around for decades now and has even helped elect a president, having a college education is a must if you want to consider yourself educated these days.
With illegals graduating and not being able to speak English but graduating because they have to or the teachers fail, the standards have had to be lowered.
That college education is not cheap and most have had to work while attending therefore student loans are necessary.
The Romeny plan of having the parents pay the debts must be implemented immediately. We cannot wait until after novemeber
Bubble, bubble, bubble...POP!!! Personally I owe $60 grand and am in the middle of a PhD. If it works out and I get a job. The government will get their money back. If not...well...I may have to emigrate to Indonesia.
i make less then 100,000 a year and i have to pay 50% of my son's tuition and i get nothing and im paying it cause he's my son.i am getting tired of you crying fu— — ing idiots crying about having to pay for something in life,america was not built on whinning little piss ants that want a free ride,you liberals are fu— — ed in the head and i cant stand welfare trash either,all of you freeloading babies go get a job and stop leaching off the tax payers
Umm, can I get a little extra this month Soildier? I need a new flatscreen...
go get job
Don't need no stinkin' job, what with all you working stiffs giving up half your pay in taxes! Suckers...
What's even more funny is that one out of 2 current graduates is unable to even find a job.
Oh wait? Didn't the current potus promise the country 4 years ago to bring the unemployment rate down to 5%????? Uhh, sorry, he that he'd do that in the NEXT 4 years.
but, BUT, B U T............................
He also promised that if he didn't cut the deficit in 1/2 in his first 4 years, he'd be a one term president !
Yet not ONE single liberal is willing to address that or admit that they are embarrassed by being so incredibly gullible to buy into crap from a virtual rookie, with ZERO experience in ANYTHING !
Obama is going to give them all stuff, and that stingy old Romney ain't giving them nothing. Some call that lazy greed.
Anyone who wonders whats wrong with this country only needs to read the posts in this discussion. Pay attention to the ones who wonder who will pay for their education. Obama may promise to pay for every ones student loan, and that will push us closer and faster to default. When that happens there will be no social programs or even the semblance of an economy. Continually expecting the government to give you more and more is selfish and un-American. Whats missing the pride in doing for yourself. Obama is removing all the dignity for the people. Soon he will have complete control and you will obey his commands. Think it can't happen? Try reading your history books. Remember nothing is free.
When and in what exact words did the president promise to pay for everyone's student loans? It's interesting to see the lies people tell here.
I am feeling more popular and it sucks. I keep going back to school and now more people are like me. Student dept. Collage is so costly but I did not ever see a full return if you add the cost of living. Education will just keep going up with no end. My children are starting in the same and I have to add my portion of the costs. I think Romney will even make it more harder for us. I do not have parents that can borrow from but depend on me to help with there short falls from retirement and Social Security.
The college loan program is actually easy to fix. No one has the courage to do it, but return college loans back to the banks. Colleges raise tuition each year, because of the easy government money available. The loans
need to be bankrupt able. Let the free market rule and tuitions, books and fees will go down.
With the high cost of college, I am telling my boys to graduate highschool and I will pay for their technical trade school plus a vehicle that is reasonable. There is no reason to go to college unless it is in fields that have jobs that can be found on job websites. To get just a piece of paper is worthless without job prospects when completed. This country is doing education completely wrong in thinking they have to prepare everyone for college. This could not be further from the truth. The country still needs plumbers, electricans, painters, roofers, iron steel men that build skyscrapers, roads, bridges, etc... I will hire a person that knows how to sweat and do real labor anyday of the week over a student with a piece of paper and no work history or ethic that just knows how to text and took out loans for a degree with no real future in job demand. Call my opinions harsh, but it is reality in this country.
The household in 2010 is 117,538. (http://www.census.gov/compendia/statab/2012/tables/12s0059.pdf)
Now, it is 2012; assuming that the household is steady, which is 117,538 household. If one in five households has debts, that means 20% of the 117,538 households which are 311 millions Americans, which is 23,508 households have student debts, excluding credit card debts and mortgage debts.
How can Romney/Ryan help this group of 20% population?
Suggestion is to ask Congress to further lower the interest rate of the student loan.
Everyone is so quick to bash a bunch of kids for not being able to calculate what their student loan payment may be when they graduate, what the job market may look like when they graduate, and what career /major they'll actually be good at. Not everyone can go into a STEM program and if every kid did go into a STEM program engineers would suddenly be making minimum wage. (Supply and Demand)
Why do we keep hearing from all the people (who I hate to admit are about my age) about how they worked three jobs, graduated early, and rode their bike to school, uphill both ways in the snow? So what are these amazing people doing to pay for their own kids college? NOTHING! Out of all my son's friends he's the only one with a college fund. It makes me mad to realize how much I saved to pay for his college and he's still going to get stuck with student loans because of his fiance. Here's a really novel idea, if you can't afford to provide for a child's future do everyone a favor and don't have kids!!!
It has been reported by numerous sources that Generation Y is less financially literate than the generations before it.
It has also been reported that Generation Y is more liberal than any previous generation.
Coincidence???
problem is kids are graduating from and college and not finding good jobs. A job at Walmart isn't going to pay 50k+ in student loans.
Students needs to stop being dumb asses about loans. Taking WAY too much out, and using it for drinking and European "studies". Aka, vacations.
I'm NOT paying some dumb-@!$%#s loans back because he/she wanted to just party. Don't give me @!$%# about how that's not true, because its exactly true.
It's not true.
I paid back my student loans - never thought of whining to the President about it. One of my concerns is that if the loans are paid for or somehow offset by the rest of us, we are teaching all these students right out of the chute that incurring debt with no intent or ability to repay is just fine, and furthering the Obama doctrine of increasing government support of those who refuse to support themselves.
Repubs. Not a good idea to mention Romney and education. His 7 years of Harvard was paid by his rich father. As to going to college, you had better stick with STEM unless you are getting an MBA from Harvard. The unemployment rate for STEM is 2.5%. If you do not want to go 4 years, go to a community college. Chemeteka Community College in Salem, Oregon has a two year course for electronics technician. Upon graduation almost perfect chance of landing a job with INTEL in Hillboro, Oregon. Very good starting wage. Apart from that, look at being an industrial mechanic. Jobs are everywhere in the U.S. and around the world. Forget any pre law, liberal arts, or basket weaving.
Harry:
MICHIGAN, April 28, 2012- For the first time in history, Americans owe more money on student loans than they do on credit cards. At one trillion dollars and on the rise, the behemoth government takeover of the student loan industry has set into motion a new financial crisis. Indiscriminately disbursing loans with high interest rates at a time when job prospects are dismal, incomes are plummeting, tuition has skyrocketed, and college degrees are losing value is bound to shatter dreams by saddling people with toxic debt. President Obama’s strong advocacy for a college education represents the mindset of someone either in a state of denial, or possessing a reckless optimism that the economy will soon rebound and the government will eventually profit from these student loans.
Read more: The Government’s Backward Approach on Student Loan Disbursement (Part 1) | Washington Times Communities
Follow us: @wtcommunities on Twitter
I owed $19000 when I got out of school in 1999 and still owe $14000. I guess that is progress but wait I probably have paid them $22000 sense then. Who is the sucker here?
Considering something like 78% college graduates with degrees do not work in their field of degree I would be against any and all attempts to relieve any of the debt they accumulated. The remaining 22% if you looked at it would not require assistance.
Predatory lending provided to the high school students is where the focus should be placed, of course many of those are backed up by the very colleges they provide loans for. Shouldn't that be illegal?
I agree. It is hard to imagine a high school student having the knowledge and wisedom to really make an educated and adult decision about taking out loans. I am sure the loan industry flocks and salivates over the high school student opportunity.
Give the kids a break. They don't know any better. Mommy and daddy paid for everything and never demanded any labor. Schools said everyone got a ribbon and there's no losers. The media says you have to have a degree to earn a decent living. The colleges said loans were easy to get and payback was over a lot of years. Plus, there's a real demand for philosophy majors and any other discipline that doesn't involve any STEM intellect or hard work.
Remember folks, work will set you free. Whenever you feel injustice....don't question it, get back to work. If you feel unhappy, go out and buy something...it will keep this glorious, exceptional system for the Romney's leisure class alive and well. I'm surprised that 80-90% of households aren't buried in student loan debt.
The best thing is to do is to Heavily Subsidise and Make Education and Higher Education Free for All American Students after paying a Small Token amount which should be Refundable on Passing the Education. This will encourage all American students to Study and also do Higher Education and thus stand on his own feet in the Job Market. This will lead to a all round growth of the American Economy when there are many Highly Educated Americans. GOD Bless the Americans. GOD BLESS THE USA.
Kevin Valentine Moraes
Mira Road (Thane)
Another Socialist who thinks "Higher Education Free for All American Students" is the solution.
There is no free lunch. Someone is forced by the government to sacrifice his money for the benefit of another. Today, all state universities and colleges receive taxpayer support. Not everyone is suited for higher education. There is a negative marginal benefit trying to provide college educate to all American students. A higher education is no guarantee to job. Having "many Highly Educated Americans" will not automatically "lead to a(sic) all round(sic) growth of the American Economy...."
Unfortunately, the above blogger is evidence of our free public K-12 school system has failed to teach the basic tenents of life, let alone some meager thinking skill.