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The class of 2015 is reaching new heights, though perhaps not the way it had hoped.
College graduates this year are leaving school as the most indebted class ever, a title they’ll hold exclusively for all of about 12 months if current trends hold.
The average class of 2015 graduate with student-loan debt will have to pay back a little more than $35,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of websites about planning and paying for college. Even adjusted for inflation, that’s still more than twice the amount borrowers had to pay back two decades earlier.
Not only is average debt rising, but more students are taking out loans to finance secondary education. Almost 71% of bachelor’s degree recipients will graduate with a student loan, compared with less than half two decades ago and about 64% 10 years ago.
“It’s unfortunate that college costs are going up and the student aid, the grants, are not going up at the same rate on a per student basis,” Mr. Kantrowitz said. “College is becoming less and less affordable, though it’s still just as necessary.”
Indeed, separate government data show much brighter job and earnings prospects for people with college degrees. Labor Department figures show median weekly earnings at $668 last year for full-time wage and salary workers with only a high-school degree. For those with at least a bachelor’s degree, the figure was $1,193. The unemployment rate also is significantly lower for college grads.
To be sure, the value of a college education varies widely depending the institution and the degree a student acquires. But for now, the investment appears worthwhile.
Parents also are kicking in a big share of college costs. Mr. Kantrowitz’s analysis shows that among parents taking out loans to pay for a child’s education, average debt crept up to $30,867 this year from $29,684 in 2014. About 17% of graduates have parents with loans out on their behalf.
All together, total education debt–including federal and private education loans–will tally nearly $68 billion this year for graduates with a bachelor’s degree and their parents, Mr. Kantrowitz estimates, a more than 10-fold increase since 1994.
http://blogs.wsj.com/economics/2015...of-2015-youre-the-most-indebted-ever-for-now/
@Mad Indian @Rashna @maomao @Khagesh @Tshering22 @Sakal Gharelu Ustad @roma @abingdonboy @Screambowl @VivekShah @Blackwater
College graduates this year are leaving school as the most indebted class ever, a title they’ll hold exclusively for all of about 12 months if current trends hold.
The average class of 2015 graduate with student-loan debt will have to pay back a little more than $35,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of websites about planning and paying for college. Even adjusted for inflation, that’s still more than twice the amount borrowers had to pay back two decades earlier.
Not only is average debt rising, but more students are taking out loans to finance secondary education. Almost 71% of bachelor’s degree recipients will graduate with a student loan, compared with less than half two decades ago and about 64% 10 years ago.
“It’s unfortunate that college costs are going up and the student aid, the grants, are not going up at the same rate on a per student basis,” Mr. Kantrowitz said. “College is becoming less and less affordable, though it’s still just as necessary.”
Indeed, separate government data show much brighter job and earnings prospects for people with college degrees. Labor Department figures show median weekly earnings at $668 last year for full-time wage and salary workers with only a high-school degree. For those with at least a bachelor’s degree, the figure was $1,193. The unemployment rate also is significantly lower for college grads.
To be sure, the value of a college education varies widely depending the institution and the degree a student acquires. But for now, the investment appears worthwhile.
Parents also are kicking in a big share of college costs. Mr. Kantrowitz’s analysis shows that among parents taking out loans to pay for a child’s education, average debt crept up to $30,867 this year from $29,684 in 2014. About 17% of graduates have parents with loans out on their behalf.
All together, total education debt–including federal and private education loans–will tally nearly $68 billion this year for graduates with a bachelor’s degree and their parents, Mr. Kantrowitz estimates, a more than 10-fold increase since 1994.
http://blogs.wsj.com/economics/2015...of-2015-youre-the-most-indebted-ever-for-now/
@Mad Indian @Rashna @maomao @Khagesh @Tshering22 @Sakal Gharelu Ustad @roma @abingdonboy @Screambowl @VivekShah @Blackwater
