The blockbuster announcement by billionaire Robert F. Smith that he will pay off the student loans held by Morehouse College’s entire graduating class of 2019 hit a nerve for a couple of reasons. Besides being incredibly generous, many college grads could benefit from such a gift, or at least a little financial relief.
Here are a few fast facts about student loans.
It’s One of the Biggest Financial Burdens – Americans are carrying $1.57 trillion in outstanding student loan debt, more than what they owe on their credit cards.
Average Debt Could Cover The Cost of a New Car – As of June 2018, the average debt carried by those who obtained a Bachelor’s Degree was $29,800.
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The Debt Keeps On Growing – For students attending a public four year-college in their home state, tuition is rising on average 2.5% a year. At a private non profit school, the tuition hike hovers at 3.3%. When you tack on room and board, those increases come in at 2.8% and 3.2% respectively.
Sources – Saving for College.com, The College Board