The Debt Trap
Student Debt Facts
78% of college students had at least one credit card. Nearly 40% of Freshman students sign-up for credit cards and almost 20% get them in high school.
Of the 78% who have credit cards:
- 32% have 4 or more cards
- Average number of cards = 3
- Average credit card debt = $2,748
- 13% have credit card debt between $3,000 – $7,000
- 9% have credit card debt greater than $7,000
8.7% of bankruptcies are from people under 25 years of age.
According to the U.S. Department of Education’s National Center for Education Statistics, 41% of graduating seniors had credit card debt, with the average balance just over $3,000. Among students who had college loans, the number with credit card debt rose to 48% and the average balance was $3,176.
- 35 out of the nation’s top 50 credit card issuers now compete in the college market.
- The average available credit limit is over $6,000 for college students.
- A typical graduate student leaves school with four credit cards and balances of more that $4,778, according to Sallie Mae.
- It would take roughly 12 years for a student to pay off a $1,000 credit card debt with an 18% interest rate if they are making only minimum payments.