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Chances are -- -- about the national debt clock which keeps track of our nation's growing debt.
But now there's another clock the student loan debt clock is ticking away 2800 dollars the second joining us now is -- -- -- -- Publisher of student loan information website and it -- ward that day hot or mark thank you -- for being here.
800 dollars sounds like a lot of money but to put in perspective what is the average student loan debt and how much is that being -- -- -- While the average student loan to -- graduation for bachelor's degree is about 25000.
And that Derrick -- a few percent a year and essentially at the same rate as college tuition inflation.
So based on that where -- we headed I mean the numbers are already staggering mark you know are we talking about you know a couple hundred grand.
In student loan debt other time our kids graduate from college.
-- over an eight seventeen year period college costs increased by a factor of three.
So low will be around Sunday 5000 by the time a newborn today and.
-- -- But won't ultimately.
Mark people have to say I can't afford this debt.
I can't go to this kind of debt it will it ultimately be self correcting where people will she's cheaper schools.
Is that possible.
Well and travelers are already becoming more sensitive to the out of pocket cost of a college education.
And more of them are shifting from private colleges to public colleges and from.
Private of from public four year colleges to public to your colleges so that shift is already occurring.
But still -- that the debt at graduation is now increasing at a faster rate than incomes.
Which means that in more more families are our.
Students are graduating with excessive debt.
Another trend of concern is that it's taking more more students are.
Taking on two point 15 or thirty year repayment terms.
Which means that they'll still be in debt by the time their own children and -- college.
OK then -- get to a point today against point with -- with college costs increasing faster than incomes.
-- -- getting to the point where just does not make sense to even go to school.
If you're gonna have that much debt and not gonna make as much at some point people gonna say you know what it won't pay off ever.
Well and we're we're heading in that direction were not quite there yet buying individual majors there might be an issue.
Generally speaking you should not accumulate more debt for your entire education than your expected starting salary after -- graduate.
So in fields like -- seeing computer science science and technology mathematics.
You generally can earn enough of a sour -- repay that debt.
But in other fields like liberal arts.
Sociology it's much more difficult proposition.
Mark thank you so much and I promise to -- that website name right then paid.
Dot -- market the -- the founder -- that.
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