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Jul 12

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Some Interesting Facts About Student Debt

Barclays recently published a report which highlighted some interesting facts about Student Loan debt.  The facts reported by Barclays lead one to believe that America has another crisis to deal with:

  • The amount of total student debt outstanding is not precisely known, but is estimated to be over $1 trillion
  • Barclays warned that the financial burden of defaults and income-based subsidization though 2020 is currently underestimated by more than $225 billion
  • Only almost half of all borrowers were making payments in Q3 of 2011, while other borrowers were either still in school or in deferral, forbearance or grace period
  • 15.5% of outstanding student debt is held by borrowers who are 50 years of age or older, who hold 16.9% of past due loan balances
  • 4.2% outstanding student debt is held by borrowers who are 60 years of age or older, who hold 4.8% of past due loan balances, and have an average student loan debt burden of $18,250
  • The median education debt belonging to households where the head of household is retired increased 62% from 2007 to 2009
  • The governments new income based repayment programs are estimated to cost the U.S. government $190 billion, due to write-offs

The above facts are staggering and require that this situation be addressed swiftly.

About the author

Anand Khemlani

I am a founding member of Fulcrum Inquiry, an accounting and economic consulting firm that performs damage analysis for commercial litigation, forensic accountings, financial investigations, and business valuations. I am a Certified Public Accountant (CPA), Accredited in Business Valuation (ABV), a Certified Fraud Examiner (CFE) and am a licensed Real Estate Broker. I regularly serve as an expert witness involving results of my forensic accounting assignments and damage analyses. My resume is available on Fulcrum's website

Permanent link to this article: http://betweenthenumbers.net/2012/07/some-interesting-facts-about-student-debt/

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