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!

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Md4's picture

End all student loans.

Simple.

As.

That.

conraddobler's picture

No college I know of teaches you the real truth or anything you really need to know.

Nothing about JFK, the F.E.D. or anything about fiat money, nothing about how things really work, nothing true about 9 eleven, nothing about jack shit that actually is going on.

It's advanced acceptance of the slave collar is all it is.

Silver Savior's picture

I love to study silver and gold. Can I get a loan to buy a whole bunch of it then I can study it? lol. 

objective_observer's picture

Actually, using Pizza as a scapegoat isn't all that fair. 

1) the student has to eat anyway

2) ANY food the student purchases is going to have interest on it.

3) the $15 pizza is likely a large, so let's say it's split into about 8 pieces.  $15/8 ~ $1.88 a slice. 

    Now I don't know about you, but I average about 2 slices for a meal, so that's 4 meals, maybe 3 if you're hungry.

   and  it has more nutritious value than that box of KD or Ramen we all expect students to eat.

4)  Beer? Yeah that's more of a problem than that pizza will ever be.

 

TRM's picture

2 slices for a meal? Have you seen a teen and pizza? My 18 year old kid (skinny as a coat rack) puts half a large deep dish away and then says "I should probably save some for later" while still eyeing it like he wants more.

Agree on the beer especially if it is bought at a sporting event or bar.

objective_observer's picture

You have me there. I don't have much truck with teens. Or children. Or people under 25 in general.

Our species has evolved and I don't understand it anymore.

Farmer Joe in Brooklyn's picture

Evolved...??

Think you mean devolved...

TRM's picture

The course I would teach to all high school students if I could?

"Compounding Interest. Your friend, your enemy, YOUR CHOICE."

 

 

pparalegal's picture

Amazing. WTF, enjoy the pizza & sex now and don't think about tomorrow. Because we all know tomorrow never comes in a socialist Utopia.

Basic arithmetic used to be taught around the fifth grade.  But when every student is told they are great, very special and given a "You are a winner" bumper sticker with guaranteed graduation to the next level by that unionized teacher..... then hits the un-dischargable debt Ponzi scheme designed by the Clintons  & N.Y. bankers in the 90's....

The only thing left out was what are the preferred majors  these baby Einstein's took for all those years? 

Aremo's picture

I'm all for teaching and expecting responsibility but... we have a situation where a bank creates out of thin air "money" to hand to whoever and then expects it back at interest.  This is backed up only because of the threat of goverment violence.  If anything of worth was actually being created if the bank actually had to lose something of value in order to do this then yes, I would say be careful and spend reasonably but we don't have that situation.  We the peasants must work while they produce scraps of paper backed by nothing and demand our labor for the rest of our lives.  The social contract is broken.  When the banks hand out a loan they are basically handing you shackles to put on yourself for their benefit and taking the off is illegal without a proper level of tribute paid to your master.  

I wonder how long it will be before the banks simply forego the entire loan song and dance and just send you a monthly bill payable on threat of prison without bothering to pretend they actually have given you anything of value for this.  

Borrow as much as possible then get a job outside the US for a few years.  Use most of the proceeds for bitcoin, gold, silver, and living expenses.  By the time you get back the hyper-inflation should be well underway and you can pay things off at pennies if you ever decide to come back to this wrecked ship.  I know if I were in Venezula paying back any "student loans" would now be a whole lot easier considering Bolivars are now valued by the pound.  

bundas kenyer receptek's picture
bundas kenyer receptek (not verified) Feb 20, 2017 2:29 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.