The amount of student loan debt has risen steadily, even before the recession, as the cost of higher education rose dramatically. The average bachelor’s degree graduate in 2008 owed $23,186, according to FinAid.org, which has extensive statistics on student debt.
…Ron Lieber of The New York Times wrote earlier this year about 26-year-old Cortney Munna, who borrowed nearly $100,000 to get a four-year degree in religious and women’s studies from New York University. She makes $22 an hour and faces monthly loan payments of $700. Lieber wrote: So in an eerie echo of the mortgage crisis, tens of thousands of people like Ms. Munna are facing a reckoning. They and their families made borrowing decisions based more on emotion than reason, much as subprime borrowers assumed the value of their houses would always go up. Meanwhile, universities like NYU enrolled students without asking many questions about whether they could afford a $50,000 annual tuition bill. Then the colleges introduced the students to lenders who underwrote big loans without any idea of what the students might earn someday — just like the mortgage lenders who didn’t ask borrowers to verify their incomes. The financial reform bill approved this summer will bring private student loans and loans from…
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Student loans exceed credit card debt
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