The Student Debt Crisis | McCarthy Law PLC
January 6, 2016

Is the Student Debt Situation in Crisis?

According to the 10th annual report from The Institute for College Access and Success (TICAS), ten years ago student debt was a problem. In fact, in 2004, 65% of students were graduating in debt with the average student debt amounting to $18,550. Today, student loan debt is a crisis. In 2014, 69% of students graduated in debt with an average debt amount of $28,950.

Although there is only a slight increase in the overall percent of students graduating with debt the difference in the average amount of debt from 2004 to 2014, is a whopping 56% increase.

With any report it is important to keep in mind its limitations. A major limitation of the TICAS report is that the data doesn’t take into account private student loans or loans taken out by students who transfer colleges. Unfortunately, this would more than likely increase the average student debt amount even more.

Fortunately, despite the huge financial burden of debt, a college degree continues to be worth it. According to the TICAS report the unemployment rate for college graduate was only 7.2% compared to the higher 14.7% unemployment rate of high school graduates.

Additionally, through organizations such as TICAS there is hope for the student debt crisis as they “remain passionately committed to increasing public understanding of student debt and its implications, and to helping more students graduate with meaningful credentials and without burdensome debt”.

However, the fight is long from over. So if you are one of the 69% of students who graduated with debt and find yourself in a situation where you are in need of relief give McCarthy Law PLC a call at (855)-976-5777 for a FREE consultation to see how we can help YOU.

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