All Debt November

It's been a few weeks again since posting, so we're due for something new. November is right around the corner and while many people will be recovering from Halloween parties and many young men will begin their quest for the biggest No Shave November beard, we here at World Zeal are going to dedicate November to talking about Student Loan Debt.

Some interesting facts right off the bat about Student Loan Debt in America:
(All information was taken from the American Student Assistance webpage)

• In each school year between 2000–2001 and 2006–2007, an estimated 60% of bachelor’s degree recipients borrowed to fund their education. Average debt per borrower rose 18%, from $19,300 to $22,700 over this time period. Average debt per bachelor’s degree recipient increased from $10,600 to $12,400.                    (Source: The College Board, Trends in Student Aid, 2008)       
• In 2007–2008, lenders provided about $17 billion in private loans, a 592% increase from a decade earlier.(Source: The College Board, Trends in Student Aid, 2008)
• In 2008, 84% of undergraduates had at least one credit card, up from 76% in 2004. The average number of cards has grown to 4.6 per student, and half of college students had four or more cards.                            (Source: Sallie Mae, How Undergraduate Students Use Credit Cards, 2009)
• Undergraduates are carrying record-high credit card balances. The average (mean) balance grew to $3,173, the highest in the years the study has been conducted. Median debt grew from 2004's $946 to $1,645. 21% of undergraduates had balances of between $3,000 and $7,000, also up from the last study.
  (Source: Sallie Mae, How Undergraduate Students Use Credit Cards, 2009)

So in a nutshell, 3 out of 5 people have to ask for some sort of help funding their higher education. Frankly, I was surprised this ratio wasn't higher. The majority of people my age I talk to had to take out some sort financial loans and are still paying them back. However, even though 3 out of 5 doesn't sound horrible to me, it's not an encouraging number, especially considering that the average debt per borrower is a litte more than $12,000. $12,000 added to whatever credit card debt a typical student is racking up means the majority of degree earning students are leaving school with incredible amounts of debt. Living in Europe, whenever I mention to locals that most kids my age leave university with debts in the thousands of dollar range, they usually look at me with a clueless look, as if saying with their faces, "Why would you do that?". Hopefully this month I'll be able to do some research and compare the European university model and the American model. I think it will be interesting to see the differences between our systems.

So, November is coming upon us and it's time we start taking a look into a very serious issue in America, Student Loan Debt. Stay tuned for some interesting stuff! Now go to work and start paying back those loans!