In the last 20 years, tuition costs have soared in the U.S. In-state tuition at public universities has increased about 158 percent during that time. Long gone are the days that our boomer parents reminisce about, you know, when you could work for a summer and save up enough money to cover tuition for a full year of school.
Many of us, especially Gen Xers like me and millennials were told to go to school and get a good job. Even with student loans, our parents told us it was worth it. Surely we'd get good jobs and be able to pay off the student loans with ease. So let's take a look at student loans. Let's talk about the realities of where we are right now and how it's okay. If you don't plan to pay off your student loans early or even at all.
There has been much hand-wringing over the more than $1.6 trillion in outstanding federal student loan balances.
Here’s where we stand:
In the last 20 years, tuition has risen by more than 100%, including 158% for in-state tuition at public universities.
More than half of people who get an undergraduate degree need to use student loan debt.
Michael Hobbs’ reporting on the financial situation millennials are facing.
Check out this information from the Federal Reserve about student loans and economic well-being.
Understanding that interest rates change and you can have different loans at different rates can make a difference.
Is a college education the best route?
We should remember that many of us, especially Gen X, Millennials, and older Gen Z students, were TOLD to get student loans because it would lead to better jobs and it would be so easy to handle the debt.
Earnings by degree type from Georgetown University.
Information from the Census Bureau about earnings from specific degrees.
High-paying jobs in the trades from Indeed.
Statistics about small businesses and failure.
While a “traditional” four-year degree might not be the only way to success, there are indications that it can still be one way to get ahead and make a good living. Don’t assume that it’s a scam or not necessary. Figure out what works best for you.
Federal student loan resources
Sarah’s Beyond the Dollar episode on student loans and PSLF
Money Talks News episode about Parent PLUS loans
Miranda’s Investopedia article on refinancing student loans
Student loan forgiveness
Debt cancellation by the Biden Administration
Biden’s plan struck down by SCOTUS
Here are different sources that discuss the popularity of student loan forgiveness:
Report from The Hill shortly after Biden’s blanket $10,000 forgiveness was suggested in 2022
Newsweek poll from March 2023
Ipsos poll from May 2023
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