Debt happens to us all. You need to know the facts about debt as you move into the working world in order to keep your self from sinking before you even get your feet in the water. So here are some fast facts about debt!
- Graduates will amass almost $20,000 in student loan debt. (Source: Nellie Mae, "Undergraduate Students and Credit Cards in 2004: An Analysis of Usage Rates and Trends")
- People in the 18 to 24 age bracket spend nearly 30% of their monthly income just on debt repayment - double the percentage spent in 1992 (10% of net income is a recommended amount for debt obligation). (Source: Center for Responsible Lending)
- According to a 2007 College Board Study, people with a bachelor's degree earn over 60% more than those with only a high school diploma? Over a lifetime, the gap in earning potential between a high school diploma and a B.A. is more than $800,000. (Source: The College Board, “Education Pays”)
- 25% of the students surveyed in US PIRG's 2008 Campus Credit Card Trap report said that they have paid a late fee, and 15 percent have paid an "over the limit" fee. (Source: U.S. PIRG, "Campus Credit Card Trap")
- The average undergrad carries $3,173 in credit card debt, the highest since the study began. The average senior will graduate with $4,100 in credit card debt, up 41% from the same study conducted in 2004. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards: Sallie Mae's National Study of Usage Rates and Trends 2009")
- 91% of undergraduates have at least one credit card, up from 76% in the same study conducted in 2004. The average number of cards has grown to 4.6, with half of college students having four or more cards. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards: Sallie Mae's National Study of Usage Rates and Trends 2009")
By Jodi Sonoda
Jodi has been blogging for over 3 years, and is excited to currently be blogging with Nexxt for collegejobbank.com. She also has her own mini and micro biography writing business and creates unique fascinators in her spare time. She is attached to the internet at the hip and enjoys the constant connection. She spends most of her offline time playing dolls and reading picture books with her three year old. You can also occasionally find her rocking the mic at karaoke night.