Student Loan Debt Increases
COLUMBIA - The price to pay for going to college is getting bigger each year making it hard to pay off student loan debt.
According to a press release from Washington, the average student borrows $25,000 to go to school for four years. That is up 25 percent in the past 10 years. According to the University of Missouri, students leave school with an average of $22,000.
The total student loan debt reached a record $1 trillion in the US. The student loan debt surpasses the debt of credit cards and auto loans and is a huge issue in the next Presidential election. Ron Paul wants to get rid of the program while Gingrich believe it is a huge money scheme. Mitt Romey wants a whole renovation of the program.
MU student Rachel Jefferies said, "Rising tuition is blame. I have to think about how to pay to go to school or I may not be here next here."
With the economy slumping, students find it hard to get a job after college. "I have this debt but no way to pay it. No wonder I go into default," said Jefferies.
Taxpayers may be responsible for helping pay off the federal debt if a solution is not found. President Obama has proposed bills to help improve the system. He has tried to come up with ways to make repayment easier but nothing has been decided .
"The taxpayer resposibility is similar to welfare. I have no problem paying for someone's education as long as they do something with it," said Jefferies.
With more students attending colleges and universities, the larger the debt grows. Tuition is skyrocketing past the rate of inflation.
In a government press release, four out of 10 students said they are late by 30 days or more paying their loans back after graduation. Students do not understand what they are getting themselves into when they borrow to go to school.
"It's a huge cycle. I cannot get a job without an education. But I can't get an education without a job," said Jefferies.
More discussion is expected to come in the upcoming months about how to manage the program.