While average education loan debt at graduation continues to increase every year, the percentage of students graduating with student loan debt is also growing. How many students and their families are borrowing to finance a college degree and how much are they borrowing?
Mark Kantrowitz recently analyzed data from the 2011-2012 National Postsecondary Student Aid Study (NPSAS). Among the observations in his student aid policy analysis report, Debt at Graduation:
Kantrowitz suggests that undergraduate as well as graduate and professional students should borrow no more for their entire education than their expected annual starting salary at graduation. If total student loan debt is less than annual income, the student will be able to repay his or her loans in 10 years or less.
Otherwise, students will find their major lifecycle decisions such as marriage, car and home purchases, raising children and saving for retirement may be adversely affected.
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