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Student loan debt increased twenty-five percent last year
By Angela Hawke. on Sep 11th, 2010
In August, student loan debt officially surpassed credit card debt in the U.S., reaching nearly $850 billion, according to FinAid.com. Now, new statistics show education loan debt rose 25 percent in 2009, suggesting that more students are finding difficulty managing their finances before they graduate.
Tuition has outpaced inflation for more than 20 years, the Detroit Free Press reports. Students who have recently found themselves struggling with loan repayment typically have parents who lost their jobs after the 2008 recession. The Labor Department released statistics earlier this week, stating the unemployment rate in the U.S. rose to 9.6 percent in August.
Keeping track of loans is one way parents and their children can be proactive about reducing their amount of potential debt. Losing important information can result in late payments and even force some borrowers to default on their loans.
To get ahead, students can also look into repayment programs during schooling. Lenders may allow borrowers to make small monthly payments while attending classes to lessen the amount they will be paying in the future.
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