Can You Guess What Is One Trillion Dollars And Growing?

How about:

  • USA Defense Spending? No that was $613.9 Billion in 2013
  • USA Consumer Credit Card Debt? Nope…that is $856.5 Billion as of March 2014
  • Bonuses Paid to Wall Street securities employees in 2013?  Na…that was $26.7 billion

College Money JarThe correct answer is the Student Loan Debt in the USA that 2/3 of the students graduating college currently have.  This is a serious debt that surpassed One Trillion USD sometime in 2013.  It is growing and some predict that if something goes wrong and it crashes it will crush the global economy like the 2000 Dot Com implosion or the 2007 Housing Bubble pop.  This possibility makes it all the more necessary for anyone thinking of taking a student loan to be an informed consumer.

Before looking at taking a student loan it is wise to understand your options and educate your self about student loans.  Both the student and the parent should do this so they understand what they are signing on for.  Generally speaking it is best to go with a USA Federal loan rather than a private bank.  It is also good to analize the cost of the loan to the low end of the average pay scale for the career you are going to college for.  Some good information can be found in various interviews at NPR including:

The Hard Truth About Defaulting On Student Loans

Loan Education Becomes Prerequisite As Student Debt Balloons

Going To College May Cost You, But So Will Skipping It


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Filed under Education, Parenting

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