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Credit Card Applications » News » Other » Credit card debt is less than student loan debt in the US

Credit card debt is less than student loan debt in the US

October 02, 2010 | Updated on October 02, 2010
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The content is accurate at the time of publication and is subject to change.

Many students all over the US are not just bothered about their examinations of the fall semester but have other factors to worry about.

Credit card debt is less than Student loan debt in the United States. There is a continuous rise in numbers of defaulters of federal student loans in the country.

Education Secretary, Mr. Arne Duncan while giving an interview to The New York Times stated that the numbers of defaulters in private, for-profit and public institutions are going up steadily.

The director of the financial aid of Eastern Michigan University, Cynthia Van Pelt said that there are number of factors for which there is an increase in student loans.

She pointed out that as there was a decrease in credit card debt, student debt has increased. Credit card debt has been falling for the last couple of years with people accepting lesser number of credit card offers in the year of 2010 with the implementation of the Credit Card Reform Act.

She further brought into notice that number of student loans have gone up for the poor economic condition of the country and lesser job availability.

According to her on can easily apply for student loans and pupils are borrowing more as they don`t get jobs. She further added that as more and more parents are loosing out on their jobs they are spending their savings to run the daily chores rather than spending it on their children`s education which are forcing more and more students to take loans.

She pointed out that in the Eastern Michigan University almost seventy five percent of EMU students get one kind or the other loans be it federal, private, institutional or state sources. Nearly twelve thousand students have been accounted for federal student loans in the 2009-10 school years by the financial aid department.

Students have been advised by the aid department to look for all other options before applying for a student loan. She said that they categorically ask parents to explore all the avenues like grants, part-time jobs, and scholarships before opting for student loans.

A student named Ashley White didn`t opt for a student loan. She frantically expressed that she would rather work crazy hours at her work place than taking loans. She was lucky to get a job near her institution but her friends were not that lucky so they had to settle for huge amount of loans.

Van Pelt stated that the financial aid department is trying hard to fight the number of pupils taking student loans. They are pointing out students of other means by which they can carry on with their studies.

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