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.

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