We all know the national student loan debt is enormous, but it didn’t used to be so bad. Just eleven short years ago, student loan debt was dwarfed by home loans, automobile loans credit card debt. It was tied with other types of loans (such as personal loans) at only 18%. Credit card debt was at 31% and auto loans were 33% of non-home loans.
Times have changed. No one seems to be able to explain why this is the case. Salaries of college professors are abysmal, so they aren’t the cause. I’m guessing the failure of states to support public education as they did in the past has something to do with rising tuition and fees.
Last year, miscellaneous debt fell to only 11%, credit card debt dropped to 21%, auto loans were almost the same as in 2006, at 32%, but college loan debt has risen to 36%. People who have student loans are not buying homes or cars. They don’t have the money.
One way to avoid being part of these statistics is to be born rich. Most of us weren’t so lucky. Timing is important too. People my age paid around $65 per semester for in state tuition. Fees were pocket change and books cost in the single digits.
Current and future students need another option. I suggest parents and grandparents pay attention to the habits of students who were awarded Full Ride Scholarships and learn what they did to end up with no college tuition or fees to pay. My book Free College Awareness is at the printer and will be available soon. In it, I divulge the strategies used by hundreds of scholarship winners. My hope is that future students will learn how to become ideal college scholarship and grant applicants, so they can do what I did, graduate college debt free.
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