I read in a Wall Street Journal blog this A.M. some interesting stats...
- The jump in the measure of consumer credit held by the government comprised primarily of student loans since 2007: 368 percent.
- Did you know that nearly 10 percent of the debt in this country is student loan debt?
- It is old news that student loan debt has surpassed consumer credit card debt.
Wow! I had a single mom at our office door today stop by. She told me that her son got a great award from a small private Christian college, but that "he has chosen Colorado State." When I reminded her that she is the one writing the check, she looked as if she had no control over her own situation, and was resolved to go into massive debt.
So this single mom seemingly had no issues taking out about $30,000 per year in loans. But you multiply that by six years or more and the payment on that will be about $2,000 a month for the next 10 years after he graduates!
Single parents, please don't let emotions dictate such a weighty financial decision. Statistically, more than 30 percent of college students don't return to the same college for their sophomore year. By the time the student does graduate, their degree is from the third college they have attended. The average time it takes to get a four-year degree is 6.5 years! (The public colleges are the ones dragging down the averages).
The default rates on student loans are at all-time highs, and so is unemployment for 25- to 34-year-olds. And guess who is going to be holding the bag when the bubble burst? The sames ones who always hold the bag—the taxpayers!
Tell all your friends about our next seminar at our office in the harbor, 9 a.m. on June 16. For free seminars, WEBinars, and useful tools to help guide the college planning process, please go to GetCollegeFunding.org, and sign up for our "7 Mistakes Most Parents Make When Planning For College."