Financial Literacy - Did You Know
Did You Know?
- "Americans owe some $914 billion in student loans ... more than the nation's entire
credit card debt... unlike other kinds of debt, they generally cannot be shed in bankruptcy."
(Time, Oct 29, 2012, p 35)
But it pays to get a college degree:
- The 2011 college graduate unemployment rate was 8.8 percent, compared to a 19.1 unemployment
rate for high school grads.
(Bradenton Herald, 10/18/2012)
- Two year college Associate's Degree graduates earn an average of $39,884 compared
to an average salary of $32,552 for High School grads. Four year college Bachelor's
Degree graduates averaged $53,967.
(Bureau of Labor Statistics Oct 2011)
However, you must be cautious when taking out a loan:
- Defaulting on a student loan can result in garnished wages, collection agency costs and many years of bad credit rating.
- Student loan delinquency may make it very difficult to sign up for utilities, rent an apartment or even get a cell phone plan.
- Shopping for the best loan may save you between $8,000 and $12,000 over the life of the loan, or about $1,000 a year for ten years, and that is after taxes.
- During the three year period from 2009-2011, 25.2% of the State College of Florida borrowers who entered repayment on federal student loans defaulted on their payments.
- "Defense Secretary Leon Panetta told reporters that the No. 1 reason troops lose security
clearances was financial troubles, which include things like overwhelming debt for
mortgages, credit cards and student loans."
(http://www.nasfaa.or, Oct 2012)