Getting a college degree is a requirement for success in many industries in the United States. While the need for a college degree, and even a further degree, continues to grow in demand, the costs of going to college have increased rapidly as well. Since the costs of going to college are outpacing the rate of inflation in the country, this is making it unaffordable for many people to go. Instead of paying for college at the time, many students are now tasked with having to take out student loans.
According to a recent news article, the amount of debt that students are accumulating has grown significantly and the situation is now approaching crisis levels (http://www.wdel.com/blogs/on-the-money/watch-out-for-the-growing-student-loan-bubble/article_fba41ab2-3efc-11e7-9b57-cfa2f9a3f7cb.html). In the past 12 months alone, the 44 million student loan borrowers across the country had more than $1.3 million in outstanding student loan debt. Further, the amount that is borrowed is increasing rapidly. The average student loan balance today is nearly $37,000, which is 70% higher than it was only 10 years ago. Further, more than 2 million student loan borrowers now have debt balances in excess of $100,000, which is unaffordable in many cases.
What has a lot of people more concerned is that more than 11 percent of student loan debt is in default. This is by far the highest level of debt of all types of consumer loans. Furthermore, the rate is increasing as thousands of more borrowers are going into default every day. The reason for the increased rise in debt is attributed to a lot of different factors. Some of these include the ease of obtaining student loans, the rapidly increasing costs of going to college, and even some schools taking advantage of the ease of debt to charge far more to students than they would have been able to otherwise.