Why has student debt increased so much?

In the past decade, the student debt in the United States tripled from $ 363 billion in 2005 to today's 1.2 trillion dollars. There are several reasons for its growth. The number of students going to college has grown higher than before, more students are receiving loans, and that they borrow more than the past.

There are a number of factors that explain why tuition fees are rising much faster than inflation. In short, however, the state has reduced subsidies for public education so students pay more at public universities than ever before. Tuition fees for private universities and universities are rising for various reasons

As more people go to college to claim higher tuition fees, the number of borrowers has increased 70% in 10 years. The same can be said about the amount borrowed by the average student. In 2004, 23 million people received student loans with an average balance of $ 15,651. By 2013, 39 million people received student loans with an average balance of about $ 25,000.

Student loan debt - an unpaid federal loan of about $ 1.4 trillion - is the largest source of consumer debt after housing. Although we do not wake up only by increasing the debt of the students, we should do debts that we can not repay, and there is evidence that we can not repay the debt immediately as more borrowers with big balances increase. This is a big problem not only for borrowers who have suffered a serious monetary fine due to neglected payment but also for invoices left by taxpayers.

More students are taking on serious debts they can not pay - now is the time of higher education to share risk

Part of the increase in student debt is due to an increase in the number of students entering university, but the amount of typical debt accumulated by borrowers is also increasing. One explanation about this is to increase the cost of the university due to the reduction of state funds for public universities. However, the published expenses rose sharply in the past few decades, but the investment in the pel subsidies and tax deductions doubled and helped reduce the impact of the net price paid by students . In fact, most students accumulate only a small amount of debts. 59% of borrowers borrowed less than $ 20,000, and the average debt of undergraduate borrowers in 2015 was $ 17,900. Likewise, large debts are more common in graduate loans.

The debt crisis of students has become a serious national problem, which is mainly due to the price hike of the tuition fee. Students are forced to borrow a loan due to this rapid tuition price increase. As much as the country, we have a total debt of $ 1.3 million for student loans. But this is not just a short-term problem, this number has increased by $ 2,726 per second. Clearly, the debt crisis of students in the United States is a big problem, but how does the sudden increase in debt of this student affect the graduates of the university? Some people think that the impact is not that big, but graduates only have to repay their loans and continue their lives. Unfortunately, that is not the case.