Oct 28, 2020 01:47 PM EDT
The updated student loan debt statistics claim that 45 million borrowers owe more than $1.6 trillion in debt. But these statistics aren't the full details of who really owes student loans.
Here is what to know about it. First, let's breakdown the latest Federal Reserve data and Brookings research of federal student loans. It accounts for more than 90% of all the outstanding loans, as per Forbes.
The data shows the highest income earners owe 60% of the outstanding student loan debt and have about 75% of all student loan payments. Meanwhile, the lowest-income earners owe less than 20% of the outstanding debt and make the only payment.
Economic realities such as those with a college degree earn more income, and with higher income can make more student loan payments, the date reflects. On the other hand, low-income student loan borrowers might be enrolled in an income-driven repayment plan that could decrease their student loan payment to as low as $0/monthly.
According to Forbes, only 6% of borrowers owe more than $100,000 student loan debt, while 2% owe more than $200,000. However, approximately 18% of borrowers owe less than $5,000 in student loan debt. This rate represents 1% of all student loan debt.
Most student loan debts are from graduate school and not from college. The latest data revealed that 56% of student loan debt came from graduate school. Among the 56%, an estimated 365 hold master's degrees, and 30% hold professional or doctoral degrees.
Typically, but not always, borrowers with professional or graduate degrees earn more salary than a borrower with a college degree. Besides, those who attended graduate school potentially become more financially secure.
However, the updated statistics provide an essential reminder that broad policies to forgive student debt across the board or waive monthly payments won't effectively address the problems facing those who are most affected by the COVID-19 pandemic. Instead, those borrowers would exacerbate the long-term trend of the economic inequality between those went to college and those who have not.
As per US News, transferring schools could affect student loans and the overall financial aid package you are receiving, whether you plan to move at the end of the school year or the end of the fall semester.
If you plan to transfer from another college, you must know which of the credits earned at your current college will follow to your new school. However, unlike credits, student loans never transfer between schools because the cost of attending your current school is a factor in identifying your financial aid award, including eligibility for student loans.
Check these out:
If you think that the micro accounts are useful only for beginners who may not be able to cope with the fast dynamics of changing quotes on trading platforms, then this is not so. Professionalism grows out of these cent accounts.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
As the metaverse takes over more of our digital lives, the commoditization of all aspects of our virtual beings becomes more and more of a reality.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.
Following the pandemic, natural calamities, and major employment shifts, a startling new study on the online news site News Nation shows that 1 in 4 Americans don't have an emergency fund.
Generational wealth is a facet of wealth management that is often misunderstood. Labeled trust fund babies, rich kids, and lucky breaks, those who receive an inheritance from families are rare.
Social media has successfully made it to the mainstream consciousness of over half the global population. DataReportal's latest study shows that over 4.33 billion people worldwide are using some form of social networking site this year. That's why it's no wonder many tech companies are interested in investing or forming the next Facebook, Twitter, or YouTube to capture the hearts and minds of the general population.