DETROIT FREE PRESS: Will you end up with student loan debt and no degree?

Career College Central Summary:

  • When thinking about college debt, the big worry tends to be: will a paycheck follow the college diploma? And will that job cover everyday bills, as well as monthly student loan payments?
  • But as the high school graduation celebrations wind down and the borrowing for college heats up, the real question to ask should be: Will I end up with a big bunch of debt and no degree?
  • A new report on the economic well-being of U.S. households gives an interesting glimpse on student loans and the challenges facing families.
  • The Federal Reserve survey noted that 23% of adults currently have some education debt. In that group, about 15% had such debt for their own education; 6% had education debt for a spouse or partner; and 6% had college debt for their child's or grandchild's education.
  • Students who took on debt but didn't complete any degree are more likely to end up behind on student loan payments.
  • About 16% of borrowers who did not complete any degree or certificate report being behind on payments, according to a survey released in May by the Federal Reserve Board. It jumps to 21% of those who have no degree and are no longer enrolled in the program for which they borrowed.
  • By contrast, 6% of borrowers who completed an associate degree report being behind on their student loan payments. The percentage drops to 4% for this who completed a bachelor's degree, according to the Fed report on household financial well-being.
  • First-generation college students and those who attended for-profit colleges find things particularly tough.
  • The survey showed that 16% of borrowers who attended for-profit institutions said they were behind on student loan payments, compared with 6% of students who attended a public institution.

Click through to read the full article.


Leave a Reply

Be the First to Comment!

Notify of