Visualizing The Stunning Truth About How Students Are Spending Loan Cash

Tyler Durden's picture

Over the last 15 years the starting salary for recent college grads has declined about $4000. Unfortunately, as ValueWalk.com details, the amount of student loan debt most students are graduating with has skyrocketed. You can now expect to graduate into a worse job market and with more debt than just a decade ago, which is leading to a serious financial crisis- the average debt load upon graduation is $37,000, and many people can’t even make their minimum payments.

Nearly 60% of student borrowers have no idea when their student loans will be paid off. Over half of borrowers have no idea what their monthly payments will be when they graduate. When you combine these facts with declining wages and rising housing rates, many people will find they just can’t make ends meet.

There are a few things students can do before graduation to ensure they aren’t set up for failure. Find out what your total costs will be and only take out the amount you need- financing a pizza every Friday night for four years can easily turn an expense of $1800 into $2291 when you have to pay interest over time. Try to seek out alternative ways to cover at least a portion of your expenses- a work-study program or part-time job can be a big help!

 

Student loans can never be bankrupted, so it’s important to pay them off as quickly as possible. Make payments while you are still in school on order to minimize your debt load upon graduation, and once you graduate try to make additional principal payments whenever possible to help accelerate your payoff schedule. Stay on top of payments and set up automatic payments if necessary so you never miss a payment- penalties can keep you on the hook much longer than you need to be. Learn more about lightening the student loan burden from this infographic!

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bundas kenyer receptek's picture
bundas kenyer receptek (not verified) Feb 20, 2017 3:29 AM

hey.. richie !!.. can u get me 8-ball of usual?   asap?

moonmac's picture
Hey kid, you're way too young, immature and irresponsible to have a sip of beer for 3 more years but here's $50,000 for an overpriced worthless degree you probably won't ever get. Now if we catch you drinking a beer we'll do our best to try ruining your life because we always know what's best for you. ‎ This country and it's citizens are beyond f*cked in the head!‎
ableman28's picture

Seeking Arrangement......THE solution for attractive young coeds!

Aussiekiwi's picture

Student debt can never be bankrupted......and you will pay it back at a much higher rate of interest than corporations have to pay to buy their own shares back to manipulate their stock price and make millions......you are so screwed.

Last of the Middle Class's picture

I'm sure you can track the massive student loan bubble with the "new cruise ship" bubble. All is fine until something goes "pop". And I'm not talking about your girlfriend's cherry. This will end badly.

Vinividivinci's picture

Don't blame the students.
This is all planned by the government.
Here in shithole Montreal, downtown merchants are still alive ONLY thanks
to students that spend their loan money on bars, clothes and phones.
The government knows full well how their money is spent.
If they wanted to curb students burning their loans on shit, they'd make it happen.
Students are a major component in supporting our failing economy.

GeezerGeek's picture

I object to government-backed loans in general, but at the least student loans should be tied to their fields of study. Low-paying fields should not be eligible for loans, high-paying fields should get more. Students should be aware of their share of the blame if, say, they major in something like "Latina Gender History" or something with equally little real world use. I wouldn't blame students if they went into a field like engineering and then had the government pull the rug out from under them. This happened in 1970 or so, when all the new US engineers and scientists, drawn into the US space program, suddenly found themselves driving cabs when USGov decided to wind down the space program's big push.

As a taxpayer (non-Canadian, I'll admit):

If I want money spent in bars I will visit one myself.

If I want to spend money on clothes, I can do that myself.

If I want to waste extraordinary amounts of money on phones, I will do that myself.

I don't need a bunch of students living off my money. One was enough, and he has repaid me many times over in far more pleasing ways.

 

 

insanelysane's picture

In the late 1980's I finished college at a state university with a degree in engineering.  Cost of school for everything; room, board, tuition, fees, was $20k.  My first job paid $26k/yr and the company was a middle of the road firm.  So I was making $2k/month with a student loan of $100/month for 10 years; 5% of monthly budget for student loan.

Today that same degree costs $140k and a graduate would be lucky to find a middle of the road job paying $60k/yr.  That's $5k/month and student loan is $1,000/month over 10 years is 20% of monthly budget.  To get to 5%, loan must be $250/month, which would be paid back in 47 years.

This is all rough math with no interest rate but it's a holiday and I am working because there are only about 4 holidays now in the US.

StreetObserver's picture

Just another facet of the ObamaDepression that President Trump has to overcome.