The Federal Reserve Bank of New York reported that household debt has reached $12.58 trillion. This is what families owe, not own.
Parents of college-bound teenagers understand how this affects future decisions. It's enough of a challenge to keep them fed and clothed. When the topic of higher education comes up, the first question is "how much is this going to cost?"
For some families, cost the main issue that determines where their student attends college. For some, it is a deterrent to apply. Others understand that some debt is necessary. But not a trillion dollars collectively!
“USA Today College (2/21, Wellman) reports new data from the Federal Reserve Bank of New York says outstanding student loan debt totaled $1.31 trillion as of December 31 of last year, a $31 billion increase since the third quarter. The data indicates student loan debt accounts for 10% of the national debt pool, second only to mortgage debt at 67%. According to USA Today College, a 11.2-percent 90-day delinquency rate on student loans is greater than rates for credit cards and auto loans.” (SOURCE: NACAC Today in College Admission)
In 2016, over thirty colleges posted a one-year cost of attendance (COA) of $66,000. With the COA projected to increase 4-4.5% each year, even if a college froze tuition for four-years, the cost of textbooks and food would continue to rise. Yikes!
This is why you need to create a plan for college and learn how to budget.
Don't let the cost of college keep you from your higher calling.
Through student ministry and educational consulting (career and college planning), I have enjoyed guiding teenagers to discover their higher calling.