My goodness, would you look at this bunch of extravagant individuals we have here. As if the exorbitant cost of college tuition wasn't enough, we now have to contend with private loans as well? It's outrageous! According to the recent findings of the Institute of Access to La College (fancy, isn't it?) and the new Success Report on the class From the load of the student debt of 2020 (go ahead, try saying that five times in a row), private loans now make up almost 8 percent of all student debts. Can you even fathom such a thing?
It's official, folks. Private loans have become the new black in the realm of student debt.
And let me tell you, the private student debt situation these days is pretty insane.
This kind of debt is made up of loans from banks and other private lenders, and it doesn't have the same protections as federal loan programs. And apparently, even undergrads are hopping on this bandwagon. Good luck, kids! It looks like we'll be seeing a lot more broke college students in the future.
And since the Covid-19 pandemic started, it's reached an all-time high.
Like, seriously, as of March, current students and graduates in the repayment process showed approximately $136.3 billion in private student loans.
That's a 47 percent increase from $92.6 billion in March 2014.
Can you believe that? And get this, the private debt market has grown by almost 50 percent since the 2018-2019 academic year.
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/>It's definitely concerning to think about the total amount of debt that students have. But you know what else is important to consider? The types of debt that students are accumulating.
It's something to keep in mind as we navigate this whole situation.
So, yeah, good luck, kids! Stay strong out there."
Private loans often come with higher interest rates and fewer repayment options than federal loans, making them a riskier choice for students. This is especially true for students who may struggle to find high-paying jobs after graduation.
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/>Despite these risks, many students feel that they have no other choice but to take out private loans.
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