Wednesday, October 22, 2014
YOLO COUNTY NEWS
99 CENTS

Student loan debt rises toward $1 trillion mark

By
April 12, 2011 |

Student loan debt outpaced credit card debt for the first time last year and is likely to top $1 trillion this year as more students go to college and a growing share borrow money to do so.

While many economists say student debt should be seen in a more favorable light, the rising loan bills nevertheless mean that many graduates will be paying them for a longer time.

“In the coming years, a lot of people will still be paying off their student loans when it’s time for their kids to go to college,” said Mark Kantrowitz, the publisher of FinAid.org and Fastweb.com, who has compiled the estimates of student debt, including federal and private loans.

Two-thirds of bachelor’s degree recipients graduated with debt in 2008, compared with less than half in 1993. Last year, graduates who took out loans left college with an average of $24,000 in debt. Default rates are rising, especially among those who attended for-profit colleges.

The mountain of debt is likely to grow more quickly with the coming round of budget-slashing. Pell grants for low-income students are expected to be cut, and tuition at public universities will probably increase.

Some education policy experts say the mounting debt has broad implications for the current generation of students.

”If you have a lot of people finishing or leaving school with a lot of debt, their choices may be very different than the generation before them,” said Lauren Asher, president of the Institute for Student Access and Success. “Things like buying a home, starting a family, starting a business, saving for their own kids’ education may not be options for people who are paying off a lot of student debt.”

To be sure, many economists and policy experts see student debt as a healthy investment — unlike high-interest credit card debt, which is simply a burden on consumers’ budgets and has been declining in recent years.

”College is still a really good deal,” said Cecilia Rouse, of Princeton, who served on President Barack Obama’s Council of Economic Advisers. “Even if you don’t land a plum job, you’re still going to earn more over your lifetime, and the vast majority of graduates can expect to cover their debts.”

Even believers in student debt like Rouse, though, concede that hefty college loans carry extra risks in the current economy.

”I am worried about this cohort of young people, because their unemployment rates are much higher and early job changing is how you get those increases over their lifetime,” Rouse said. “In this economy, it’s a lot harder to go from job to job. We know that there’s some scarring to cohorts who graduate in bad economies, and this is the mother of bad economies.”

By Tamar Lewin

Comments

comments

New York Times News Service

  • Recent Posts

  • Enter your email address to subscribe to this newspaper and receive notifications of new articles by email.

  • .

    News

    County to fund pilot project for West Sac homeless

    By Anne Ternus-Bellamy | From Page: A1

     
    A favorite autumn tradition

    By Enterprise staff | From Page: A1 | Gallery

    Marathon specialist Winter heads to cycling shrine

    By Bruce Gallaudet | From Page: A1 | Gallery

     
    Davis Arts Center: a call to artists for Holiday Sale Wall of Art

    By Erie Vitiello | From Page: A3 | Gallery

    Author showcases field biology as he revels in nature

    By Special to The Enterprise | From Page: A3 | Gallery

     
    Pedal around Davis on weekly bike ride

    By Enterprise staff | From Page: A3

    Apply soon to be a Master Gardener

    By Enterprise staff | From Page: A3

     
    Terez will perform at Wine’d Down Thursday

    By Enterprise staff | From Page: A3

    Super-fun 5K run will support UCD students

    By Enterprise staff | From Page: A3

     
    Wine-tasting and auction benefit Advanced Treble Choir

    By Anne Ternus-Bellamy | From Page: A4

    Entries due Nov. 1 in VFW essay contests

    By Enterprise staff | From Page: A4

     
    Teen services grant applications due this week

    By Anne Ternus-Bellamy | From Page: A4

    Voice of the Wood plans family Halloween show

    By Special to The Enterprise | From Page: A4 | Gallery

     
    Garamendi will speak at U.N. Day event

    By Special to The Enterprise | From Page: A4

     
    Wolk sets ‘Morning with the Mayor’

    By Enterprise staff | From Page: A5

    Volunteers sought to chip in on parks cleanup

    By Enterprise staff | From Page: A5

     
    Setting a good example

    By Sue Cockrell | From Page: A5

    Composting workshop set at Grace Garden

    By Enterprise staff | From Page: A5

     
    Kids form a lifelong habit of drinking water

    By Special to The Enterprise | From Page: A5

    Farmers Market hosts Fall Festival

    By Special to The Enterprise | From Page: A5 | Gallery

     
    A Taste of India dinner benefits Davis Community Meals

    By Enterprise staff | From Page: A5 | Gallery

    Women and men want the same things in cars … usually

    By The Associated Press | From Page: A6

     
    California state parks show off fall color

    By Kimberly Yarris | From Page: A7

    October is fall car care month

    By Special to The Enterprise | From Page: A7

     
    Railroad work will close Eighth Street

    By Special to The Enterprise | From Page: A9

    Special education information night scheduled

    By Jeff Hudson | From Page: A9

     
    Halloween Carnival planned Oct. 26

    By Enterprise staff | From Page: A9

    Mondavi Center gift shop plans holiday sale

    By Enterprise staff | From Page: A9

     
    Soda bottlers spend big to fight S.F. ban

    By San Francisco Chronicle | From Page: A9

    Clinton sounding like a candidate in S.F. appearance

    By San Francisco Chronicle | From Page: A12

     
    .

    Forum

    Bad business over the phone

    By Creators Syndicate | From Page: B5

     
    Vote no on Prop. 1, because it’s no solution

    By Special to The Enterprise | From Page: A8

     
    David Fitzsimmons cartoon

    By Debbie Davis | From Page: A8

    .

    Sports

    Giants rip Royals in Game 1

    By The Associated Press | From Page: B1 | Gallery

     
    UCD women’s soccer postseason hopes flickering

    By Bruce Gallaudet | From Page: B1 | Gallery

    A typical Blue Devil girls water polo win

    By Enterprise staff | From Page: B1

     
    DHS boys hold off Rio Americano in the pool

    By Enterprise staff | From Page: B1

    Devils are on track for volleyball playoffs after win

    By Evan Ream | From Page: B1 | Gallery

     
    AYSO roundup: Local winners have the Eye of the Tiger

    By Enterprise staff | From Page: B3 | Gallery

    Alliance/Legacy roundup: Italia cruises past Chico

    By Enterprise staff | From Page: B3 | Gallery

     
    Sports briefs: Fipps earns another preseason hoops award

    By Enterprise staff | From Page: B8

    .

    Features

    .

    Business

    .

    Obituaries

    Mariana Brumbaugh Henwood

    By Special to The Enterprise | From Page: A4

     
    .

    Comics