In part one of a two-part podcast series, Scott Rodgville, an Officer at GSG, speaks with Jan Wagner, President of Central Scholarship; and Michele Waxman Johnson, Vice President at Central Scholarship, about the student debt crisis, federal student loans, private student loans and more.
The student loan debt numbers are staggering – 45 million Americans have borrowed $1.7 trillion, and counting, in student loans, exceeding credit card debt and automobile loan debt. In the class of 2018, 69% of college students borrowed with the average debt at graduation close to $30,000 in both federal and private student loans.
Students aren’t the only ones who are borrowing. Parents are borrowing as well – 14% of the parents of college students borrowed an average of $36,000 in federal parent PLUS loan funds.
From mid-2014 to mid-2016 nearly four million undergraduate students with federal student loan debt dropped out without completing their degree. Their default rate is three times higher than students who graduated as a result of debt and their lack of credentials, a major cause for concern.
The numbers are astounding, but there are strategies to alleviate the student loan burden.
GSG and Central Scholarship discuss ways to help make college more affordable for families, such as the free college movement in the United States, and better understanding the difference between federal, private, and interest-free student loans, and which is best for you.
If you’re interested in learning more, tune in to part two of our podcast series.Categories: Higher Education