Jill Berman of MarketWatch reports on the overwhelming student loan increase that has occurred over the past decade, a 56% increase since 2004.
Since 2004, the average student debt has increased from $18,550 to $28,950, and that is not counting graduate degrees or for-profit colleges. Although the debt has increased, the need for a degree has also concurrently accelerated.
Sheila Bair, the former chair of the Federal Deposit Insurance Corporation and current president of Washington College, argued earlier this month that several decades of slow wage growth is one of the main reasons families are increasingly relying on borrowing to afford college“You have this dynamic of declining real wages and an increased need for a college degree,” she said in an interview with MarketWatch. “And so what you end up having is more and more young people applying to college with fewer families able to pay for it.”