Student Loan | Report: Student Loan Debt Tops $1 Trillion
March 24, 2012 – 4:01 amPALM BEACH GARDENS, Fla. — student loan debt tops $1 trillion in the U.S. which means students are now having to delay big milestones like buying homes because they can’t afford it. Something financial experts say is a blow to the economy.
Jeannette Sullivan has admittedly racked up student loan debt over the last few years.
“My passion is to be the best teacher I can be, so staying current in school is important,” said Sullivan.
Between getting her masters, and now pursuing her doctorate, her loans are close to $100,000.
“This loan has prevented me from looking for a house. I just don’t think I’d ever qualify a loan of that size.”
And she’s certainly not the only one in that boat. According to some just-released figures from the U.S. Consumer Financial Protection Bureau , student loan debt now tops $1 trillion nationwide.
“A trillion is nothing to ignore,” said Matt Klocke, investment adviser.
Klocke is an independent investment adviser in Palm Beach and says this is another debt issue the U.S. economy simply can’t afford to take.
“That money used to pay off student loan debt won’t be used for mortgages. If they can’t put down a down-payment, they won’t be able to qualify for a mortgage,” said Klocke.
Klocke says students delaying to buy houses is just one of the concerns. He says they’re also not able to save nearly much as in the past.
“If rates start to tick up from the current low levels, those loans will increase in value over there and they’ll have to pay more back on what they owe,” said Klocke.
Not only is Sullivan trying to manage her own debt, she also sees the struggles from the students she teaches at Palm Beach State College. Some have even dropped out of school because of it.
“They’d rather not get a degree than take on that debt,” said Sullivan.
It’s a reality for many these days, and Klocke says unless tuition goes down the student debt problem may only get worse.
Experts say another reason student loan debt is rising is because more Americans are going to college to get away from a poor job market.
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Tags: Student Loan
