College Debt Crushes Grads
According to "The College Debt Crunch" survey of college graduates conducted by Alliance-Bernstein Investments, Inc., a full 74 percent of college graduates with student debt described themselves as “living paycheck to paycheck.” However, only about half of the debt-free respondents thought of themselves this way.
More than one-third of graduates with debt said they had sold personal possessions to meet financial obligations—twice the number of debt-free grads who had done so. Almost half of all indebted graduates surveyed said that the decision to purchase a home was delayed because of student loans.
Most respondents said they held part-time jobs while in school, and about one-third of them lived with family.
Fewer Grants For NM Students
In New Mexico, state officials said they had earmarked $25 million for a program to benefit adult college students. The program, slated to begin this year, will now only award $2 million for the 2006-2007 academic year.
The College Affordability Act originally called for $49 million in grants for low-income students who are ineligible for certain state-funded financial aid programs.
Half of that money, officials said, was to be distributed among approximately 12,000 students in 2006-2007. Now, it is estimated that only about 1,500 students will receive aid.
The state’s Secretary of Education, Beverlee McClure, said that after a reexamining the law, officials were only permitted to use the interest generated by the fund.
Students Work Through School
Around 80% of American college students have jobs while enrolled in school according to a recent release from the American Council on Education.
On average, these students work 30 hours each week; and more students work than study full time, live in dormitories, attend a four-year school, or apply for or receive financial aid.
Almost a quarter of full-time students work full-time, and many students from wealthy families also work at least part-time while enrolled.
Many students also described themselves as full-time employees who are also enrolled in school. In most cases, working full time was shown to have a negative effect on a student’s grades.
UK Cracks Down On Repayment
UK higher ed minister Bill Rammell warned foreign students that the government-run Student Loans Company (SLC) would begin taking non-U.K. students to task for failing to repay their student loans in a timely manner.
Currently, the government allows European Union students to borrow Ł9,000 each for their British higher education, which attracts around 17,000 E.U. students each year.
Currently, those who study in the U.K. enjoy interest-free loans from the country’s treasury. The SLC is able to ensure that U.K. residents repay student loans through the tax system; however, officials have not used other E.U. countries’ tax systems to encourage repayment by non-U.K. students and graduates.
Stats On Student Loans Released
According to the Department of Education's National Center for Education Statistics, almost two-thirds of college students take out education loans. The average U.S. graduate leaves school owing more than $19,000; $17,000 of that sum is owed to the government.
New York students reported owing the greatest average amount of student loans, followed by students in Georgia and Minnesota.
The incidence of students who borrowed was greatest in Oregon and Minnesota, where around 75 percent of undergraduate students received loans.
The National Center for Education Statistics gathered the best data from 12 large, medium, and mid-sized states. Officials in states reporting higher numbers blamed the swelling student debt on recent budget cuts.
Article Title : College Debt Crushes Grads
Iâ€™m currently working on post-grad debt, so anything I can find to help me sav e money is great.
Iâ€™m blogging my â€śadventures,â€ť too; here: http://shauna2 6.wordpress.com/
Posted By : S hauna
Share this story:
EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!
How EdFed Helped others!
I recently did a consolidation for my son, who is attending medical school. The representatives that I spoke with were extremely helpful. They explained every step in the consolidation process in detail so that I had no questions. They were also very efficient in following up with me. - Charlene W. St. Paul, MN
Student Loan Consolidation Info - How to Choose the Right Loan Company
The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.
Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.
If your monthly debt burden for your federal student loans collectively equals or exceeds 20% of your total monthly gross income, you likely will be eligible for forbearance on your consolidation loan.