Article written by Brandon Endsley, Information Graphic brought to you by Hannah Peters and collegeathome.com
Commencement is over, your roommates have packed up their things, and there is a looming monthly student loan bill brewing in the back of your mind. If you can relate to this scenario, take a deep breath because you are not alone. The average college graduate has incurred about $25,250 in debt which has a rough monthly payment of $300, depending on the type of loan and its stipulations.
Our generation’s student loan debt is greater than any other previous generation. In 1987, such as, the average student loan debt was $7,500 which increased to $8,200 by 1991 and swelled to $18,900 by 2002.
As a nation, we have a student loan debt problem on our hands. High student loan debt causes students to put off life events such as buying a house, purchasing a car, or starting a family, to make their monthly payments. A generation delaying life events changes the nation’s demographic cycles (such as, the average person will no longer buy his or her first house at age 34) and the nation’s economic cycle’s change with the demographic cycle. These changes can cause market uncertainty. Market uncertainty does not create a safe place for investors, which, in return, can cut the effectiveness of the nation’s economy, prolonging our slow grow.
As a nation, we need to be aware of our national debt and aware of the negative outcomes of too much debt. The information graphic below shares data pertinent for seniors on the verge of graduating and for recent graduates shackled with student debt. The information graphic brings to light the negative effects debt has on our nation’s graduates today and shows a trend of where we are heading. You can receive further information about your student loans and their repayments here.
Created by: CollegeAtHome.com