College students nationwide wonder about their futures regarding student loans, and how they will pay off those loans. Oftentimes, these students and graduates fall into an unfortunate pocket of student debt that lingers for years, and even decades, after graduation. Ohio is all too familiar with this type of debt, and recent news shows that the state even has the most student debt in the country. What causes this overwhelming amount of debt, and what are the possible solutions?
An article in Bloomberg echoes this preexisting worry across the country, stating that, as of 2015, student debt in America hit an all-time high of $1.4 trillion. 2015 was also the eighteenth consecutive year that American’s education debt rose, and aside from mortgage debt, student debt stands at the foreground of financial obligations among young Americans. Many experts predict that this alarming debt could mean trouble down the road for U.S. economic growth. To improve collected data, and ultimately start reducing this debt, the Consumer Financial Protection Bureau recently announced a proposal to collect more detailed information from the nation’s biggest student loan companies.
When it comes to Ohio students, USA Today points out that the state has the most debt in the country, and that the reasons for such can be complex. The average student debt in Ohio is $30,329, and more than two-thirds of students are living with debt. Of course, consolidation is one solution to looming student loans, but the advantages can vary depending on individual finances and the level of interest that applies to monthly payments. USA Today adds that the balance of student loans make up more than 50 percent of their annual income. Other financial experts claim that the issue does not just begin post-graduation, but also involves the following factors while in college:
- State and local government grants
- Student job opportunities
Yet when students graduate, they also naturally face car loan payments, monthly rent and eventually mortgages. While most students expect to see loan debt for their foreseeable futures, the government is currently working to ease debt through student loan officers, who can guide students through numerous student loan payment options.