Bad News For College Bound Students

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Thursday, 15 December 2011

Bad News For College Bound Students

As a member of the Community Scholarship Foundation of Canon-McMillan (CSFCM), I was shocked to learn that student loan debt now totals $865 billion – an amount greater than all outstanding credit card debt and all other types of household debt excluding mortgages.

College graduates have an average of $25,000 in debt. The debt load is so high and the job outlook is so bleak, student loan default rates have almost doubled. This is not projected to improve anytime soon.

Mounting student loan debt combined with low job prospects and wages have led many 25-34 year olds to move back in with their parents. Almost 6 million 25-34 year olds now live with their parents, a number that has increased 26% from when the recession began in 2007.

High school students (and parents of high school students) need to do their research to see which career paths will afford the best possibility for employment after completing college or secondary schools.

Benefactors including alumni, parents and corporate sponsors: please consider generous donations to scholarship organizations like CSFCM to help lower the amount of loans needed by students.

The bad news: It will take longer than ever for young people to qualify for mortgages, with higher debt ratios and possible credit dings from unpaid student debt. While it is hard to find a silver lining in these latest statistics, there will be increased opportunity for real estate investors as the rental market will continue to expand and grow.

POSTED BY: Gayle AT 11:09 am | Permalink | E-mail this

Gayle Blonar
Coldwell Banker
Real Estate Services
724-344-4795 (cell)
724-942-1200 (office)
Ext. 213
Email Me!
gayle.blonar@pittsburghmoves.com

Michael Blonar
Coldwell Banker
Real Estate Services
724-344-4794 (cell)
724-942-1200 (office)
Ext. 279