A new infographic shows some alarming statistics on student loan debt in America.
The majority of students graduating from universities today are looking forward to a lifetime of debt and very few jobs, at least in the short term. FrozenPeaFund.com has just published a new infographic showing how former students are tied down with thousands and even hundreds of thousands of dollars in debt long after they graduate.
In the past employers would hire a college graduate with the idea that that graduate would work for them long term, if not for life. As an incentive to keep the graduate on board, the employer would pay off part or all of the student loan. Those days in America are long gone and a graduate would be lucky just to be recruited out of college today.
American companies nowadays find much cheaper labor in other countries. Although overseas labors started out with mainly unskilled workers, many professional jobs from major United States companies are now being filled in other countries where the cost of living is a lot less. The professionals can therefore ask for a lot less in compensation. The ironic thing is many of these graduates were educated at the same American universities free of charge – the bill picked up by the federal government.
A recent college graduate will find that there are very few jobs in their chosen field upon graduation and although they can hang their sheepskin in some low rent apartment somewhere, in many cases, they will be flipping burgers at a fast food restaurant for their first job. Needless to say, this minimum wage job makes it impossible to pay the bills.
For the first half of 2013, delinquencies and defaults are at their highest level since 2003, with 21.8% of former students defaulting within their first two years of graduation. A total of $52 billion in loan payments are currently delinquent. Over 20 million Americans attend college each year and 60% take out student loans to cover tuition. Currently, the total amount of outstanding student loans is between $902 billion and $1 trillion. $150 billion of the loans are privately held and $864 billion are held by the federal government.
Thirty-seven million people in the United States have outstanding loans. The sad fact is these loans do not go away with an inability to pay. They continue to gain interest over a person’s life. Former students aged 30-39 year olds owe an average of average debt of $54,000. Forty to 49 year olds owe an average debt of more than $100,000 and if you have not been able to pay on the debt at 50 to 59 years old you now owe more than $200,000 on average, as the infographic shows.