A new report indicates that unpaid student loan debt exceeds $1 trillion. The amount of student loans taken out last year exceeded $100 billion.
The astonishing numbers also makes it the first time that individuals owe more on student loans than they do on credit card debt according to the Federal Reserve Bank of New York.
The student debt can be traced to students and workers seeking retraining as a result of the state of the economy. But, for those looking to improve themselves through education, the stark reality of the employment rate makes the risk of defaulting on loans is high.
Via the USA Today:
•Defaults. The portion of borrowers in default — more than nine months behind on payments — rose from 6.7% in 2007 to 8.8% in 2009, according to the most recent federal data.