Average Student Loan Debt When Graduating
Graduating from college should be a glorious occasion. It is, but the average student loan debt carried by graduates is enough to wipe that smile off your face.
The education system in the United States is set up in such a way that there is little choice but to take on student loan debt if you wish to pursue higher education. This is primarily due to the high cost of college, but money has often been given out to easily and far to large amounts. Every dollar borrowed has to be paid back and the news is more and more dollars are being bothered.
So, what is the average student loan debt when graduating? The most recent figures are from 2008 and the number is ugly - $23,200. This is a whopping 25 percent more than 2007! That is just ugly no matter how you slice it. The only good news would appear to be that the interest rates on loans these days are mighty low.
A state-by-state review reveals some very bizarre statistics. The state with students carrying the highest debt is not a state. It is Washington, D.C., with average debts of over $29,000. The odd thing is Iowa is second at a whopping $28,000 plus. Iowa? On the other end of the scale, we find Hawaii at $15,156 and Utah at $13,000 plus. Who would have imagined that Iowa students would carry nearly twice as much debt as Hawaii!
The education system is a mess. On one hand, it makes sense to have student loans so people can get a quality education. On the other, does it make much sense to saddle them with so much debt when they are just entering the job market? One would think there was a better way, but any major reform of the education system is way down the “to do” list given the current economic climate.
