43.3 million Americans have a total of $1.26 trillion in federal student loan debt, and the average debt burden for the graduating class of 2016 is $37,172. Almost 40% of the $1.26 trillion in student loans were used to finance graduate or professional school. As of 2013, private student loan debt from banks or other non-government lenders stood at $6.2 billion. Student loan debt numbers for graduating students in 2012 were as follows:
• Public colleges - 66% of graduates had loans with an average debt burden of $25,550
• Private colleges - 75% of graduates had loans with an average debt burden of $32,300
• For-profit colleges - 88% of graduates had loans with an average debt burden of $39,950
Currently, 11.6% of student loans are in delinquency status, which means the people who received these loans have stopped making their monthly payments. Not only will this damage their credit, but it may prevent them from getting a job or obtaining loans for large purchases for a home or car. The $1.26 trillion student loan debt is at crisis levels, and political, business and education leaders need to figure out a realistic and responsible way to solve this problem.
Infographic by: moneygoody.com