It’s a correlation no one can deny. As college tuition and fees continue to rise (up 50% in the past 10 years), so does credit card debt. As fewer families have the cash to support college students, more students are charging their tuition, books, fees and other living expenses just to get by.
According to Sallie Mae, the average undergrad has a credit card bill of $3,173, up a startling 134% from $2,169 in 2004, and the highest amount since the organization began tracking in 1998. It seems that tenure in school correlates to debt as well, with seniors owing twice as much as freshmen.
This new study from Sallie Mae uses March 2008 data; due to the state of the economy since then, they warn the actuals for 2009 could look worse.
Fewer banks are issuing private student loans, making cash more sparse for the cliched “poor college kids.” While government student loans are still available, it seems the plastic in their hip-pocket is more accessible.
(via USA Today)
posted on April 15th, 2009
by Brandi, Senior Editor
Tags: credit cards, debt, private student loans, sallie mae, Student loans, tuition
Posted in Financial Aid, Student loans | 13 Comments »
April 10th, 2012 at 1:01 am
[...] For the past few years, Berkeley has been dealing with budget cuts and has had to increase tuition. Berkeley is already one of the most expensive public schools in the nation, but just last year, [...]
August 1st, 2011 at 10:15 am
[...] that will call your parents. Colleges and universities assume that since you are paying tuition, you’ll get your money’s worth, and go to class. Remember that you’re an adult [...]
April 29th, 2011 at 11:57 am
[...] to any neighborhood surrounding a college campus and chances are you’ll see tables stacked with credit card applications offering free food, books, gift cards, etc. Card companies know that the future [...]
March 8th, 2011 at 2:09 pm
[...] paying for a college education on credit. Although it is currently only six percent of families who pay for college this way, the trend is not expected to stop and could become much higher in the [...]
February 24th, 2011 at 10:23 am
[...] turmoil began when the University of Puerto Rico included a new $800 fee into semester tuition. This fee is a response to recent budget cuts, and school officials maintain that the fee is [...]
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October 29th, 2010 at 10:41 am
[...] this narrowed gap is nothing new. Over the past ten years, public school tuition has increased at an annual rate of 5.6 percent, while private schools have increased at an annual rate of three [...]
October 26th, 2010 at 11:01 am
[...] is expensive and, thus, a luxury, but despite tuition rates on the rise across America and an economic recession, many universities are still meeting and exceeding [...]
August 30th, 2010 at 11:47 am
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June 16th, 2010 at 1:02 am
[...] have all been writing blog after blog about how to save for rising tuition and prepare for the costs of college, but here is a way to save your money while spending money on [...]
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December 8th, 2009 at 1:03 am
[...] 25 percent from only four years ago, according to The Project on Student Debt. And with the average cost of college tuition rising every year, this debt is also going to [...]
November 6th, 2009 at 2:24 pm
[...] the past few years is the cost of attending college. The cost of attending college, which includes college tuition, fees, room, and board, increased more than four percent during the same [...]