Student debt has risen dramatically. But is $26,000 in debt unreasonable if the payoff is $1 million?
Last week, I commented on Charles M. Blow’s March 9 column in The New York Times, which focused on the problem of student debt. I discussed the factors that contributed to the sudden growth of educational debt and steps that are necessary to rectify the problem (or would at least prevent it from becoming worse).
I ran out of room before I could get to the issue of assessing how big a problem student debt really is – hence, Part II this week.
On the one hand, student debt has increased dramatically: roughly $1 trillion in total debt, more than twice what it was just eight years ago, and larger in size than the total of all credit card debt. On an individual level, approximately half of the student population borrows to finance their education, and they graduate owing an average of about $26,000.