Bad news. For the first time in history, student loan debt is expected to surpass $1 trillion dollars.
I guess now you’re expecting to hear the good news. Unfortunately, this soaring level of debt is just tacking on more of the bad. Mark Kantrowitz, publisher of FinAid.org, recently told USA Today that college grads are ultimately delaying major life events because of the financial burden of higher education.
Students who borrow more money for school tend to put off purchasing cars and homes and delay getting married and starting a family. The College Board reported that students are borrowing twice the amount of money they were even a decade ago, which will have a resounding impact on the economy.
“The less money that goes into the economy, the worse off it will be,” said Jen Murphy, a senior finance major at Emory University. “ The economy constantly needs to be boosted and fed. If the next generation does not have the funds to buy cars, etc., these industries will begin to fail.”
As students are presented with these statistics, they must consider how much debt they are willing to take on and how that will impact their life further down the road. For some, this means selecting a public institution over private in order to cut down the price of tuition.
A new federal law, designed to simplify college costs, will require college websites to have a net price calculator. The calculator factors individual circumstances (such as living off campus) to determine a more tailored tuition estimate for students and their families. The law takes effect on Oct. 29.