I listened to this podcast (This Week in Venture Capital) about a company focusing on organizing a students debt and loans. More than the company, the stats really stuck out for me. Here they some and what they mean:
Student debt is HUGE. Student debt over last 10 years has doubled to a trillion dollars. Here’ the breakdown:
It’s not just poor, it’s a lot of people. 2/3 of all students graduating in 2008 took on debt
It’s a problem that isn’t being solved. Of the 2008 grads that took on debt only 22% of these are current (aka up to speed on their payments)
It’s not just young people anymore. 34% of all outstanding debt in US is held by people 40 years or older
This is fundamental problem in America and it’s impacting everyone at all ages and areas. I feel like it should get great attention and be a bigger part of the “what’s wrong with America” conversation.
Luckily, the changes in the education system will cause more schools with more affordable opportunities to emerge. Kahn Academy U can’t come fast enough apparently.