Student Loan Debt

Avatar for cmkristy
iVillage Member
Registered: 07-05-2005
Student Loan Debt
3
Mon, 08-05-2013 - 10:07am

The real cost of student loan debt is far greater than you may think, according to a new analysis.

A household with $53,000 in outstanding student debt -- which is the average college loan balance for a family headed by two people with 4-year degrees -- will be about $208,000 poorer over a lifetime than a similar household with no debt, a study released Thursday by public policy research organization Demos found.

Average Student Loan Debt Could Cost A Household $208,000 Over a Lifetime: Study- http://www.huffingtonpost.com/2013/08/04/student-loan-debt-lost-wealth_n_3701087.html

Do you have student loans?  Do they add stress to your budget?

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iVillage Member
Registered: 04-16-2008
Wed, 08-07-2013 - 9:03am

The study is based on the assumption that the "similar" households have the same income, but one with debt and the other does not.  It is a no brainer that it is better off to have same income, but no debt!  And if applies to debt in general, not just student loans.

The question they should ask is how much additional lifetime earning one gains with an investment of $53,000 in education/training vs. the cost of the loan over a lifetime.  Furthermore, $53,000 of loan does not always translate into $208,000 unless you drag out the payment.  I took out over $65,000 of student loan for my last graudate degree and paid it off in 3 years.  The interest cost was only about $7000.  During the same time period, I had two promotions.  So in this particular scenario, the cost of student loan over a lifetime is only $72,000 - way less than the increase in earning potential over a lifetime.

iVillage Member
Registered: 10-06-2006
Sun, 08-11-2013 - 12:05pm
See, there you go again, Demontespan, applying logic and actual facts to counteract what was intended to be an emotional, "everybody's-a-victim" tirade. We're all supposed to be wringing our hands and whining about how it is all so unfair that anybody has to pay for anything or put in any effort or make any sacrifices now to improve their lives in the future. Everything is supposed to be handed to them on a platter, at no cost to them, with no effort expended on their part. People like you who are able to do math and are actually capable of exercising common sense sadly seem to be in the minority. Most people reading that article likely are saying, "See, "they" are keeping us down. It's all "their" fault. "They" should pay more taxes so we can get everything free."
iVillage Member
Registered: 10-06-2006
Sun, 08-11-2013 - 12:05pm

Posted in error.