How Bad is Student Loan Debt? There is no doubt it’s pretty bad for millions of people, but I found a few really amazing facts that put it into a little perspective. I have a few of them here but visit the rest at huffingtonpost.com.
Bigger than Most Countries
Currently, more than 40 million Americans hold student debt. The population with student loans is actually greater than the entire population of Canada, Poland, North Korea, Australia and more than 200 other countries. It’s also about four times greater than the population of Sweden.
Seven Million Defaulted
Out of the nearly 40 million borrowers, about seven million have defaulted on these student debts. Translation: 7 million (or about 2 percent of the population of the United States) have had their credit trashed as a result of their student loans and can have 25 percent in penalties added onto their total student loan debts. To add insult to injury, about 60 percent of employers run credit checks on applicants before hiring or promoting, making it close to impossible for millions to get a higher paying job to actually repay these debts.
Average Student Debt Increases While Wages Decrease
Since 1999, student debt has increased more than 500 percent. Unfortunately, average salaries for young people have not. In fact, since 2000, the average salary for young people has decreased by 10 percent. It’s no wonder that we are seeing millennials delaying starting families, making car purchases and buying homes.
Your Student Loans Could Make You Unemployable
With seven million Americans defaulting on their student loans, this also means that seven million Americans will have their personal credit plummet and be deemed unhireable by many employers as a result. Once a borrower has defaulted on a student loan, this can also result in automatically becoming ineligible for some government jobs.
It’s pretty bad out there, there is a lot of stuff at your disposal if you know where to look. I cover this and other facets of debt and I would highly recommend you take my class on how to get out of debt.
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