A Lifetime of Horror??

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Media everywhere (e.g., television, radio, newspaper, Internet, etc.) recently have been discussing the explosive growth of school debt, striking fear in the hearts of families with college-bound children, with children in college, and families with PLUS loans.

While it’s true that roughly 44 million Americans owe nearly $1.4 trillion in school debt, is there a way to accurately understand that indebtedness and who likely will be affected?

While not too surprising, the debt holders most likely to default were those that:

(1) dropped out of school;

(2) attended a non-selective college; and/or

(3) came from a disadvantaged background.

Still, more subtle factors also contribute to default.

Students who attend for-profit institutions and students who attend community college default at similar rates. Students graduating with a bachelor’s degree default the least.

When comparing broad groups of students (e.g., Arts/Humanities, Business, STEM, and Vocational, which included majors like aviation, cosmetology, and welding), studies have shown that those majoring in the Arts have significantly higher default rates than those majoring in other areas.

When facing a “mountain” of school debt, debt which could last 30 or more years, is an undergraduate education worth the expense? Perhaps it depends on the media source in which you place your trust. Nevertheless, it seems that those with 4-year degrees have a much easier time finding employment than those without.

And, with the addition of the debt elimination program, families who plan properly for the cost of education and the repayment of school loans, need not succumb to the fear our media sources are sowing.

For more information, contact our Professional College Planners to schedule your meeting.

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