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Smartmoney.com senior writer AnnaMaria Andriotis on student loan debt and the cost to attend college.
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Near the happy fact for you almost half of Americans -- broke.
According to a study by the National Bureau of Economic Research 46% of Americans die with less than 101000 dollars in assets.
The study looked at the connection between health and wealth of Americans.
And -- that many of the households who have no housing wealth rely almost entirely on Social Security benefits for support.
And -- talk about paying for college right out of that but there's a report from the Wall Street Journal showing that.
Upper and middle income households people -- fairly well off are getting hit the hardest now by student loan debt.
Joining us now is Anna Maria Andrea yes she is senior writer first Smart money dot com Anna Maria great to see.
I -- wait when does this stop is the question because now it's reaching -- we've wealthier Americans if there really doesn't appear to be any and to this problem in sight at this point what we know is that there is more than one trillion dollars.
An outstanding student loan debt and that figure continues to grow.
I wonder what the effect of -- -- right because.
You know without even any names of colleges we got all say it is a top tier of American colleges with -- -- Ivy League and -- some of the schools.
And then there's the state schools and then there's this other tier colleges that are private schools that cost almost as much by the way.
At some of these top rated schools so if you're a parent or student going.
I'm a -- -- the state schools and then the prices come down or now.
Well parents definitely need to decide whether it's worth it for them to pay so much money for college the fact is that state colleges are much more affordable the problem is that that tuition continues to grow at a rate that's actually faster.
But gynecologist tuition.
At public colleges is going in about 8% a year -- keep growing it's still cheaper.
And the catch here is.
It's cheaper if you attend -- in state college price so it's it's much cheaper for in state residents to go to public their state public colleges that if you what to say -- based in New York go to public college in California I.
And -- for years and -- you listen to may yet to decide what you're gonna do when you get out and then may make a decision about how much debt you wanna take on knowing that Larry and work on Wall Street you're gonna go work -- -- -- social worker.
But to this point.
Do you think that the ease of getting credit and -- student loan market is largely controlled by the federal government it's so easy to get alone.
Did the government -- -- Americans taking on the debt and therefore it becomes a cycle where.
Colleges will charge whenever the market can bear the government hasn't made it a lot easier to get student loans.
Basically there's no credit check at all if you go to a -- apply for student loan.
You're going to have to put her credit check the bank is -- to check to make sure that you will be able to pay back these loans and will charge you accordingly.
-- -- Applicant will get the same interest rate up and that has made it much easier to get these loans Ana Marie and I estimate should thanks very much him coming on things.
