According to a recent study by the Brookings Institution, 38% of U.S. adults between ages 20 and 40 have student loan debt, and the average amount of debt is about $19,300. This has risen steadily since the study began tracking debt levels in 1989, when only 14% of that age group had student debt, and the average debt load was just $5,810 (in 2010 dollars).
However, in the interest of telling the whole story, there are some facts about student debt that you should know, but that are not covered too often. Here are three things that might make you think that the increase in student debt may actually be doing more good than harm.
More people are getting advanced degrees
The study found that approximately one-fourth of the increase in student loan debt is simply due to increased levels of education attained by borrowers, particularly at the graduate level. In other words, more money is being borrowed, but that money is producing more advanced degree recipients.
As of the 2013 data, nearly 34% of U.S. adults between the ages of 25 and 29 have achieved a bachelor's degree or higher, which has steadily risen from less than 25% in 1995. And, the number of members of that group with a master's degree or higher has grown from 4.5% to 7.4% in the same time period.
The Student Loan Assistance Counsel (SLAC) is a third party provider and is not associated with any government entity including the Dept. of Education. SLAC is a private organization specializing in Document Preparation, Submission, and Tracking. We offer a free counseling session to help identify which Federal programs are available to you. Our service consists of the Preparation, Submission, and Tracking of your Federal Student Loan Consolidation Documents. Consumers are not obligated to use a third party resource and may choose to complete their own documents for student loan consolidation based on the federal programs. SLAC does not provide services for debt negotiation, debt settlement or any altering of the current debt. Our services are strictly for the assisting in the completion, submission, and tracking of federal student loan program documents.