What is the cause of the student debt crisis?

In the simplest terms, student borrowers are in crisis due to a rise in average debt and declining average wage values. In other words, a significant portion of indebted college graduates and non-graduate borrowers are unable to repay their debts.

Why are college students debt?

Student loan borrowing is often tied to the cost of college tuition and fees, which, per U.S. News data for the last 20 years, has more than doubled across ranked private and public National Universities – schools that are often research-oriented and offer bachelor’s, master’s and doctoral degrees.

How do college students not end up in debt?

Reducing Student Debt When Choosing and Applying to Colleges

1. Attend a Free College.
2. Attend a Community College First.
3. Attend an Online University.
4. Apply for the Honors Program.
5. Apply to a Few Prestigious Universities Too.
6. Look Abroad.
7. Fill Out Your FAFSA as Soon as Possible.
8. Take College Courses in High School.

How does college debt affect students?

Student debt impacts borrowers over time by raising debt burdens, lowering credit scores and ultimately, limiting the purchasing power of those with student debt. Because young people are disproportionately burdened by student debt, they will be less able to participate in — and help grow — the economy in the long run.

Is it possible to avoid student debt?

It is possible to avoid student loan debt when studying in the USA, whether it’s by working and saving before college, spending less during college, and making smart repayment choices after college. You can graduate debt-free!

Is student debt a crisis?

The student debt crisis has surged 144\% over the past decade, forcing 45 million Americans to shoulder $1.7 trillion in loans. Rising tuition costs and unchecked borrowing aren’t helping. “And when borrowers cannot repay their loans, the federal government and taxpayers foot the bill.