Posted on 01/23/2020 10:21:24 AM PST by Brookhaven
1. SIX PERCENT OF BORROWERS OWE A THIRD OF ALL THE OUTSTANDING DEBT.
A very small fraction of all student loan borrowers have very large loans. Six percent of borrowers owe more than $100,000 in debt, with 2 percent owing more than $200,000. This 6 percent owes one-third of the outstanding $1.5 trillion of debt. At the other extreme, 18 percent of borrowers owe less than $5,000 in student loan debt. They collectively owe 1 percent of the debt outstanding.
2. ...ABOUT HALF THE DEBT OUTSTANDING, BORROWED FOR GRADUATE SCHOOL.
4. MOST BACHELOR’S DEGREE RECIPIENTS GRADUATE WITH LITTLE TO NO DEBT.
Thirty percent of all bachelor’s degree recipients graduate with no debt, and another 23 percent graduate with less than $20,000 in loans.
(Excerpt) Read more at brookings.edu ...
23% of people who get a bachelor's degree graduate with zero debt--zero.
Of those that do graduate with debt:
56% have less than $20K in debt
77% have less than $40K in debt
To put that in perspective, the average cost of a new car is $37K. $40K is a lot of money, but it is not a bone crushing debt in today's dollars.
Who is running up a big debt? Just 6% of students. Only 6% of students have more than $100K in student debt, but it represents 1/3 of all student debt. And, as the article points out, these people are running up huge debts pursuing post-graduate degrees (master's and doctorates).
The vast majority of students are being prudent in their student loans. It's a minority of students that have abused the system and now want everyone else to bail them out of their mistake.
So basicically, Bernie and Pocci want to use tax dollars to pay off the debts of graduate school students who went to ivy league schools.
How’s this supposed to play in Iowa?
Show me the breakout of majors in that 6% that holds 1/3 of the student loan debt.
And I would argue that a lot of those people who run up sizeable loan amounts use a lot of that money to do things like spring break trips and support a “non-college” type of life and standard of living.
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My admittedly anecdotal experience tells me this is wrong.
I speak with a lot of Millenials in my daily life, and the vast majority of them never quit bitching and whining about their student debt.
I would not be surprised if a lot of it was medical and dental school programs. These tend to be VERY expensive.
My dentist said the first year of dental school @ BU was $75K. It gets cheaper from there because you have to buy a lot of equipment and supplies your first year of dental school.
A two year Masters Degree can easily be $50K.
It is only when you go for a PHD program that the University actually PAYS YOU a stipend. Most of that stipend will be eaten up just in rent and basic living expenses.
I have worked in student loans most of my career...2/3 of them are Med students, law students, dental students (you would be stunned how much they borrow), vet students and other grad...most want to live the life style before they earn the life style....
Like the “cops target blacks”, this info exposes education lies. It doesn’t, however, reveal who the dead beats are. Are they students who game the system? Are they lazy slouches? Are they hardship cases? Are they low-IQ people who shouldn’t be in Higher Ed? Do they have useless degrees? Do people just ignore their lower loan balances? Is their a racial or gender correlation? Etc.
Dave Ramsey disagrees. Heartily. :)
The Sobering Stats on the Student Loan Crisis
At this point, national student loan debt has way exceeded credit card debt—by over $1.6 trillion!(2)
Student loan debt has seen almost 157% growth since the Great Recession and is the fastest-growing portion of the total household debt in the U.S.(3)
There are currently about 44 million student loan borrowers in this country.(4)
65% of college seniors who graduated from nonprofit colleges in 2017 had student loan debt.(5)
We’re seeing an average of about $35,000 in student loan debt per student at the time of graduation.(6)
As of 2018, roughly 1 out of 10 people with student loans were late with (or completely missed) their payments. That’s the highest 90+-day delinquency rate of all household debt—outranking auto loans, credit card debt and mortgages!(7)
Still breathing after reading those facts? Good. Because we’re not done breaking down just how crazy student loans really are.
The True Cost of Your Student Loan Payments
There’s a reason why lenders make it pretty easy and painless to take out a loan. They know people (especially high school and college-age people) just want to take the next step in their lives and will be drawn to the fact that student loans make college seem affordable and accessible. But really, the cost of the loan is so much more than meets the eye.
Picture it: You’re young, so you take out student loans to major in something you’re passionate about. You’re hopeful about the future—and then you have to make payments for up to 30 years, depending on your repayment plan.(8)
That’s a lot of life to spend being weighed down by debt.
More:
https://www.daveramsey.com/blog/student-loan-crisis
Yes, he’s Preachin’ to the Choir because living Debt-Free IS his thing, but following his advice has worked for me. Debt free and retired at 56. Huge fan. :) If Dave thinks there is a crisis, I’d believe it. Also - super Conservative guy; he’s not for Democrats bailing out anyone on student loans.
2/3rds of the debt is held by women. Is that a fair and efficient allocation of limited resources?
you wrote
2/3rds of the debt is held by women. Is that a fair and efficient allocation of limited resources?
* * * * * * * *
“Holding” a debt means the debt-holder person is OWED money. That is the Creditor,
The debtor is the one who OWES money.
So what did you mean when you said “2/3rds of the debt is held by women.”?
I mean $1 trillion of the $1.5 trillion in outstanding student loans is owed by female borrowers at the peak of their child bearing years. That's not good for the USA on many levels.
Very interesting numbers. Some raw numbers would be useful as well. As usual though, it looks like democrats are lying again. Surprise.
@TheTruthWillMakeYouFree, you are spot on with your questions!
I have two sons that are doctors (specialists) that owed nothing after undergraduate degree, but accumulated ~$200K debt each to pay for medical school. When they start making the big bucks ($300-400K) after Residency and Fellowship(s) — about 6-9 years after receiving MD — they’ll be able to pay down the debt.
Contrast that with an electrical Engineer I know that racked up $100K debt and started in a job paying $65K. Or how about the Art Major who borrows $40K to make $10/hr wherever.
Who has the bigger debt, and who’s most likely to default on it?
“There’s lies, damnable lies, and then there’s statistics.”
Bottom line...the moment Millenials become 50.001% of the voting bloc they WILL vote themselves loan forgiveness.
Slam dunk. Done deal. Take it to the bank. I am as convinced of that as I am that the sun will rise in the East tomorrow.
“We’re seeing an average of about $35,000 in student loan debt per student at the time of graduation.(6)”
The median student loan debt is only $17K.
Why is the average twice as much as the median? Because you’ve got a few people at the high end taking out monster loans skewing the average.
If half the people have $17K or less in loans, I don’t see that as a crisis.
Even $17K in debt is stupid, according to Dave.
I paid for my college via the Army and Mastercard, which was paid off each month. ;)
I don’t understand your point.
You seem to be saying we should bail out these kids who have $17K in student debt, because they did something stupid.
Do you favor the government (taxpayers) bailing them out or not?
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