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Student loan debt continues to pose problems for grads, FOX reports
09/22/2010
New statistics show that student loan debt has officially surpassed credit card debt in the U.S., as more graduates struggle to find jobs and steady sources of income. Currently, education loan debt totals almost $830 billion, compared to the $825 billion consumers owe on their plastic.
The average college student graduates with nearly $23,000 in student loan debt, according to FOX News, but with the unemployment rate rounding out at 9.6 percent in the month of August, options are limited. When loan payments are not made, the government can seize Social Security benefits and tax return money from grads who fail to pay their due.
Students are now paying four times more for a degree than they were 25 years ago, FOX reports. Parents are encouraged to sit down with their children prior to sending them off to college to talk about the cost of a higher education.
Grads already struggling with repayments can look into "income-based" plans that are based on the borrower's current salary. Payments are capped at 15 percent of the borrower's overall income.
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