College graduates may see more debt problems
According to an analysis by the College Board, potential debt problems seem to be growing for some students.
In its “How Much Are College Students Borrowing?” brief, the College Board took a look at statistics made available by the U.S. Department of Education’s National Postsecondary Student Aid Study, which covered the 2007-2008 school year.
“The analyses in ‘How Much Are College Students Borrowing?’ examine the borrowing decisions students and families are making,” College Board President Gaston Caperton said.
Among college students who completed a degree, 41 percent graduated without any debt. However, the study did show that students who completed some undergraduate degree with debt increased to 59 percent. That is up from 54 percent during the 2003-2004 school year.
For bachelor’s degree recipients at four-year public schools, the median debt level was $17,700. Taking inflation into account, median debt rose by four percent compared to the 2003-2004 school year. For private schools, bachelor’s degree recipients came out with a median debt of $22,375, which marks a 5 percent increase over the 2003-2004 school year.
A recent study from Sallie Mae shows that college students are also graduating with more credit card debt. The average amount of credit card debt for a graduating senior was $4,100 in 2008, which is up from $2,900 in 2004.
The newest generation of adults isn’t showing much promise in the area of financial responsibility. The number of 18- to 24-year-olds declaring bankruptcy has increased 96 percent in 10 years. Students can’t face the consequences of huge credit card debt right out of school or even five to six years later, particularly with high student debt payments to boot.
If you’re struggling to get ahead after graduation, we can help. Call Consolidated Credit today to request a free debt analysis.