Future Student Loan Debt

Paying For College: The Future Of Student Loan Debt [Infographic]

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Job security can be very challenging to find in the current economy, and on-going change to how businesses and employees view jobs. Increasingly, even full-time, permanent jobs feel more and more like a temporary position; and employees are beginning to view themselves as contractors more than long-term workers.

Job hopping, while still not encouraged, is no longer the same stigma it once was a decade or so ago. In this highly competitive environment, where people are constantly playing musical chairs with jobs, how do you ensure that you get a seat?

A college education is still a sound investment in your financial future, as it opens doors to higher incomes. Keep in mind, however, that the cost of tuition has grown 500 percent over the last 60 years, without a slowdown in sight.

Most students and their families will find paying for four-year schools increasingly difficult, and will usually require outside assistance to cover the cost of tuition, books, room and board, and other essentials. The cost of a four-year degree has become such that even if parents begin saving for their child’s college education from the moment the child is born, they still may need help funding the costly investment.

As government assistance dwindles, and grants become increasingly difficult to come by, more students and families will need to rely on student loans.

Student loans, however, are yet another burden for graduates entering the job market. Student loans can take an individual well into their 40s before he or she is able to pay it off. And with compound interest, the student could end up paying double what he or she originally borrowed. Learn more about the long-reaching effects of borrowing money for college with this infographic, which covers the past, the present, and the future of student loan debt.


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Photo Credit: Shutterstock

Maxine Wells

Maxine Wells is a freelance writer and has written on a wide variety of subjects from education to finance. She knows a college degree can be both beneficial in the job market yet a financial burden so she encourages students and parents to plan their finances wisely while in school.

2 comments

  1. OK…this graphic was so depressing. I was going to show it to my kids ages 17 & 19 (one in college & the other a senior in high school). But why? Is there a positive hidden somewhere in here? Point it out for me — please.

  2. “Student loans can take an individual well into their 40s before he or she is able to pay it off.” — true + terrifying!

    My husband & I are in our early 20s and are making sacrifices so this is not the case for us. I know many of our friends aren’t in the position to do this – but this student loan debt makes me feel suffocated so we are doing everything we can do get those paid off and plan to have them gone by 2014.

    I thankfully came out of college with no debt (working all 4 yrs and getting scholarships)…but the husband wasn’t so lucky. We’re currently put (practically) every extra cent towards his student loans. He started with $43K. We have $36K left. I am detailing my entire debt pay off journey, along with tips, budget advice, and progress reports on my blog – so feel free to check it out: http://mrcandmeblog.wordpress.com/lets-talk-money-series/

    Best of luck to all of you working hard to pay that $$ back!!

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