Smart SpendingSmart Spending

Average student loan debt tops $25,000

Two-thirds of college students have outstanding loans -- and the nation's unemployment situation is making it harder to pay them off.

By MSN Money Partner Nov 8, 2011 12:17PM

This post comes from Seth Fiegerman at partner site MainStreet.

 

MainStreet on MSN MoneyStudents are graduating from college with an ever-increasing amount of student loan debt, a new study from a nonprofit education group shows.

 

Two-thirds of all students who graduated college in 2010 owed money for loans, and those that did held an average loan debt of $25,250, according to data from the nonprofit Institute for College Access and Success. That represents a 5% increase over the average student loan debt in 2009.

 

As bad as that may sound, the actual average debt per student might be even higher as the report only factors in data from four-year public and private nonprofit colleges and not from for-profit institutions, which often have higher tuition costs. Post continues after video.

The average student loan debt also varies significantly by state. Several states in the Northeast, including Maine and Vermont, have an average student loan debt of nearly $30,000 -- and New Hampshire is the one state in the country to break the $30,000 mark, with an average debt of $31,048 per graduate.

 

The increasing amount of student loan debt is further compounded by the rising unemployment rate among college graduates. As the Institute points out in its report, the unemployment rate for college graduates 24 and under was 9.1% in 2010, up from 8.7% the year before. The net result is many students have more debt to pay down and less income with which to do it.

 

More on MainStreet and MSN Money:

3Comments
Nov 13, 2011 9:10PM
avatar
Well, at least be smart about the student debt you create.  Pick a major where you can actually get a good paying job.
Nov 14, 2011 12:20AM
avatar
I graduated from a private college in 1989 with $18,000 in debt. I paid it off in three years despite a bad job market and a first full time job that only paid $30,000.  Adjusted for inflation, my debt would easily be more than $30k in current dollars.  It appears to be a lot of money, especially if unemployed.  It can and it will be paid off (student loans cannot be discharged in bankruptcy).  Find a job.  Live very lean. Pay off those loans. Then you can live it up some.

Using the average loan amount is misleading.  The number is skewed by people who go to expensive medical schools and law schools.  A better number would be the median student loan amount.

Mar 1, 2012 3:41PM
avatar
You are so out of touch with your article.  $25K ??!!  What high school are you talking about.  The reporters you are hiring are NOT doing their research.  And what is with MSN and voice activated articles.  I am here to read not have it blast and annoy people around me.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

ABOUT SMART SPENDING

Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.

VIDEO ON MSN MONEY

TOOLS

More