It’s no wonder today’s youth have been labeled as a “Generation Screwed.” Not only do they graduate into a weak economy with scarce job opportunities, they do so while being in debt thousands of dollars from student loans.
This year, college graduates owe an average of $35,000. That number will rise if Congress doesn’t act by July 1, when interest rates are set to double. Democrats, Republicans and President Obama have tossed around counterproposals, most of which focus on allowing the market to set interest rates.
Yes, the same market that gambled on mortgages to fail. That’s encouraging.
$1 trillion Overall student debt in the U.S.
2/3 Proportion of students who take out a loan to finance their college education
0.75% Interest rate for banks to borrow from government
7.9% Interest rate for federal student loans
500% Increase in average student loan debt since 1999
52 Average age for college graduates to pay off their student loans
This article appeared in print with the headline “In your worst interest.”