The Average Student Loan Debt Essay

1058 Words Jul 5th, 2016 5 Pages
As of most recent data shows the average student loan debt per student was thirty thousand dollars with over twelve million who borrow per year (Institute, 2016). There are over one trillion dollars of past due student loans to date. The majority of students taking out these loans are under the age of twenty-nine. This means that right out of high school, with no income, these students have started to acquire a lot of debt. Added to the size of the debt is that gradually over the last several years the cost of tuition has increased. The average cost of tuition in 1975 for a four-year degree was about ten thousand dollars, the average cost of tuition in 2015-2016 is thirty-two thousand dollars (“Tuition and fees and room and board over time, 1975-76 to 2015-16, selected years,” n.d.). The reason for the increase is because the government grants have not been keeping up with the rising costs of tuition and that has caused this to shift a lot of the burden on to the student. With incomes staying relatively flat in the recent years, countered with the increasing tuition costs the weight can become overwhelming. The average starting salary for new graduates with a bachelor’s degrees is around fifty thousand a year (Inc, 2016). Assuming that the new graduate is earning that wages and has around thirty thousand in student loans, if they were to save roughly 10% of that income to be put towards the debt, it would be paid off in approximately ten years. However, this…

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