1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will term you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have atleast 2 credit cards and 14% of them have 10 or more credit cards.
<< She says: "Honestly by the time
i finish my studies, I'll be looking at $100,000 to
$150,000 of debt!"
<< Student #2 says: "Right now my total student loan debt
is about $26,000. And that's crazy for me because
i've never seen that kind of money."
<< Student #3 says:
"I think it will be 15 years before i can fully
pay off my debt."
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Video Review
Education Facts
in the USA
College graduates in the US earn nearly twice as much
as workers with just a high school diploma, one of
the highest rates in the world.
Each year over 200,000 qualified high school graduates
forgo higher education due to costs alone.
Traditionally, 75% of a student's financial aid has
come from the federal government.
3 out of 4 full time students have jobs, and hearly
1/2 of them work more than 25 hours a week.
By the time they graduate, nearly 2/3rd of students
at 4 year colleges and universities have student loan
debt.
Over the past decade, debt levels for graduating seniors
with student loans more than doubled from $9,250 to
$19,200 -- a 58% increase in inflation.
Heather Boushey (Center
for Economic & Policy Research)
A student going through
college is really looking at one of the best investments
into their future. They are also looking at really
tough times in terms of financing their education.
For a typical college student, money is pretty tight;
their cost of living is increasing quite rapidly.
Students have to spend a lot more on college than
their parents' generations did. And they have a lot
less access to the type of Federal Grants than their
parents' generation did.
The Federal Government
has to provide more access to Grant aid that the student
doesn't have to repay back.
Jennifer Pae (President,
United States Student Association)
20 years ago, the Federal
Grant program used to cover 60% of a student's tuition
fees, now it's at 33%. Many students after graduation
have to put off starting a family, buying a car/house
because of stagerring levels of student loan debt.
Unfortunately, we are no longer seeing the goal and
purpose of higher education, that is to build the
American dream. Instead we are seeing huge levels
of debt. In the long term, I don't think higher education
will be accessible to everyone qualified. The doors
to higher education are becoming closed for many people.
Comments
DDJohn Comments on June 23rd, 2007
I feel very sorry for students who
have to take out massive levels of debt to get through
school. I have a lot of respect for those students
who realize this problem, and work at part time jobs
while going to school in order to keep the debt to
a minimum. I do NOT have respect for those students
who go out drinking and partying all the time whilst
in school and do not work at part time jobs, but instead
will spend their money buying stupid guitars.
MongoliBabe Comments on
June 27th, 2007
I owe $120,000 in student loan debt
while pursuing my Master's degree. My job pays fairly
well, $50,000 a year, however i just cannot afford
to pay the $120,000 student loan debt. If i could
go back in time, I would never have gone to school.
Sometimes i wonder why i pay so much in taxes when
this money cannot provide for higher priority things
such as education, instead the money goes to wars
and military.
<< She says: "Honestly by the time
i finish my studies, I'll be looking at $100,000 to
$150,000 of debt!"
College graduates in the US earn nearly twice as much
as workers with just a high school diploma, one of
the highest rates in the world.
