Most people who go to college graduate with student loan debt. It is the second-biggest debt in the United States. It is estimated that there are 43 million people in the United States have student loan debt. The average person has $30,000 in student loan debt. This is a $10,000 increase from the 1990s.
While student loan debt has increased, starting salaries have only increased by 1 percent. The average starting salary for a college graduate is only $50,000. That is why it is getting harder for people to repay their student loans. It is estimated that 30 percent of student loan borrowers are delinquent.
As reported by CNBC, it is also becoming more common for people to owe debts in the six figures. Elisha Bokman is a graduate of Bastyr University. Even though she has been out of school for eight years, she still owes $500,000. She has a master’s degree in acupuncture and a doctorate degree in Naturopathic medicine. Elisha stated that student loan debt does have a negative impact on her life.
Many people have stated that student loan debt has made it harder for them to start a business, raise a family or invest. Politicians have made various proposals to help people with their student loan debt. Elizabeth Warren and Bernie Sanders have stated that all or most of student loan debt should be forgiven.
A. Wayne Johnson, who is former Trump Administration official, is also a supporter of student loan forgiveness. He stated that $50,000 in student loan debt should be forgiven for each borrower. This is a total of $925 million.
Twenty percent of people stated that they have postponed starting a family because of their student loan debt. Homeownership rates are also down. Additionally, people have smaller savings, and fewer of them are starting businesses.
Some people are hit harder by student loan debt than others. Black borrowers owe more money than white borrowers. It is also important to note that young people are not the only ones that have been hit hard by student loan debt. Stephanie Gelante will be turning 80 soon and still owes $40,000.
Dil Bole Oberoi
