Student Loan Debt
A closely related issue is the increase in student borrowing to finance college education and resulting student loan debt. In the 2007-2008 National Postsecondary Student Aid Study (NPSAS), the median cumulative debt among graduating 4-year undergraduate students was $19,999; one quarter borrowed $30,526 or more, and one tenth borrowed $44,668 or more. In 2010, the average debt of graduates of 4 year nonprofit universities across the country was $25,250, which is an overall rise of five percent from 2009. In fact, for the first time in the history of America, 'Student Loan' debt has surpassed 'Credit Card' debt.
The U.S. spends more on education than most other developed countries, and the U.S. has a disproportionate share of the top-ranked universities in the world.
In his 2012 State of the Union Address, President Barack Obama, addressed the rising costs of tuition to attend universities in the United States. Through an executive order in 2011, President Obama laid out a student loan plan, “Pay as you Earn,” that would allow students to pay off debts as they acquire funds. Furthermore, the Obama administration has developed a standardized letter to be sent to admitted students indicating the true cost of attendance at an institution, including all net costs as well as financial aid received. Use of the letter is not mandatory, but is encouraged. The goal is to provide transparency in higher education costs.
Read more about this topic: College Tuition In The United States
Famous quotes containing the words student, loan and/or debt:
“In the student sensuality is a sluggish habit of mind.”
—Henry David Thoreau (1817–1862)
“Slight was the thing I bought,
Small was the debt I thought,
Poor was the loan at best—
God! but the interest!”
—Paul Laurence Dunbar (1872–1906)
“Pain and fear and hunger are effects of causes which can be foreseen and known: but sorrow is a debt which someone else makes for us.”
—Freya Stark (1893–1993)