Thursday, September 27, 2012

Record number of households have student loan debt says Pew study

The number of households that owe student loan debt has more than doubled in the past two decades to 19%, about one in five homes. Among households headed by someone 35 years or younger, 40% of those homes now owe student loan debt.  These are among the findings of a new Pew Research Center study released yesterday which is excerpted below. The study found a significant spike in student loan debt since 2007 most likely tied to tanking the economy as many sought refuge by borrowing money to pursue degrees. Because the study only tracks through 2010, it may be that the numbers have climbed even higher in the intervening years.

A Record One-in-Five Households Now Owe Student Loan Debt: Burden Greatest on Young, Poor

About one out of five (19%) of the nation’s households owed student debt in 2010, more than double the share two decades earlier and a significant rise from the 15% that owed such debt in 2007, just prior to the onset of the Great Recession, according to a Pew Research Center analysis of newly available government data.

The Pew Research analysis also finds that a record 40% of all households headed by someone younger than age 35 owe such debt, by far the highest share among any age group.

It also finds that, whether computed as a share of household income or assets, the relative burden of student loan debt is greatest for households in the bottom fifth of the income spectrum, even though members of such households are less likely than those in other groups to attend college in the first place.

Since 2007 the incidence of student debt has increased in nearly every demographic and economic category, as has the size of that debt.

Continue reading here.

(jbl).

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Comments

I have been struggling with debt from my college loans as well. A couple of my friends have the same problem as me. After finding a job and attempting to pay off some of the loans my friends and I agreed that this is not a full-proof option. Too make a long story short, we have all decided to get a second job and seek debt management. It is crazy that a full-time job doesn't give you enough money to pay the bills and live a comfortable lifestyle.

Posted by: Mike Cornelia | Sep 28, 2012 10:52:48 AM

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