Wednesday, March 21, 2012
According to a study by the Federal Reserve Bank of New York:
The outstanding student loan balance now stands at about $870 billion, surpassing the total credit card balance ($693 billion) and the total auto loan balance ($730 billion). With college enrollments increasing and the costs of attendance rising, this balance is expected to continue its upward trend. Further, unlike other types of household debt such as credit cards and auto loans, the student loan market is incredibly complex. Numerous players and institutions hold stakes at each level of the market, including federal and state governments, colleges and universities, financial institutions, students and their families, and numerous servicers and guarantee facilitators.
Here is one of the many charts in the study:
It is my understanding that only half of the colleges answered the survey concerning the average student loan debt. It seems logical to assume that many universities - particularly private universities - did not report their student loan debt because they wanted to conceal how much debt their students hold. And some of those colleges that did report may have fudged the numbers because they were under no obligation to be precise. The $25,000 figure cited by colleges and news media is not an absolutely trustworthy number. I would not be surprised if the average student loan debt for a public education is closer to $35,000 and that the average student loan debt for a private education is at least $55,000.
The Project on Student Debt noted that because the data is voluntarily reported by colleges, actual debt is probably higher than its report shows. ~ CNN Money. Average student loan debt tops $25,000 By Blake Ellis November 3, 2011: 5:22 AM ET