American Graduates Are Drowning in Debt

Posted By Levi

November 14th, 2011 8:13pm

Category: Education

The American economy is being dragged down by massive mortgage debt. As if that wasn’t enough, now comes news that Americans owe more in student loans than they owe on credit cards – almost One Trillion dollars. 

Students who graduated from college in 2010 with student loans owed an average of $25,250, up 5 percent from the previous year. The average debt – once again the highest on record – came as the class of 2010 faced an unemployment rate for new college graduates of 9.1 percent, the highest in recent years.

President Obama recently announced a plan to  help these graduates manage their debt. Starting in January 2012, the plan will limit loan repayment to no more than 10% of a student disposable income. After 20 years, all remaining debt would be forgiven. This is actually an improvement on a plan previously announced by the former Bush administration.

 

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