Student loans are a rising epidemic. Using debt to obtain a degree can be beneficial if done properly, but a weak job market and stagnant incomes are weighing on graduates that aspire for homeownership.
Bitcoin may be the only thing rising faster than college price-tags. The average price of college tuition increases 8 percent a year, meaning the cost of tuition doubles every nine years. This outpaces almost every other kind of inflation that is widely tracked.
Students are more likely than ever to take out a loan to pay for college. In 2005, consumers in the United States with at least one open student loan on record had an average student debt load of $17,233, according to a study conducted by FICO. However, this debt load increased 58 percent to $27,253 last year. In comparison, all other debt categories combined only grew 4.3 percent.
The latest Federal Reserve numbers show that total student loans outstanding nearly tripled over the past decade and now equals roughly $1 trillion, exceeding total credit-card debt. In fact, mortgages are the only debt outstanding that is greater than student loans. Those seeking to obtain a mortgage to purchase a home are feeling the weight of the increasing liabilities…