Have you ever wondered what the cost of K-12 public education is in America? According to the National Center for Education Statistics, the average per-student expenditure in public schools is between $5,000 and $15,000. (In Wisconsin, lawmakers estimate $10,000 per student.) Therefore, we can speculate that the average student enrolled in public schools in the U.S. will cost taxpayers roughly $100,000 for his or her k-12 education. The cost for a college education varies by state and type of college. According to the College Board, the 2013-2014 average per year cost for tuition and fees: $30,000 for private colleges and around $10,000 for state and public colleges. By the time a college degree is in your hand, more than $150,000 has been invested!
Fidelity Investments research states that 78% of parents don’t want their children to be left with hefty student loans. Their studies found that of the 66% of families that save for college, the amount saved, on average, covers only 30% of their child’s college education. (Keep in mind that tuition is only a small part of the total cost of going to college.) Of the 34% of families who don’t save, some intentionally choose this option because they believe students can learn some valuable life lessons paying their own way. However, most families will look to financial aid or other sources, (loans, grants, scholarships), for funding options to help fill in the gap between the cost of college, and available funds.
The cost of college continues to increase an average of 5% each year. The average college student will leave school with over $25,000 in student loan debt. (Let’s not forget that these student loans will continue to collect interest for years.) Financial aid can come from Federal or State governments, institutions, or private organizations. Since 2006, the number of federal student loans increased 64% and loan disbursements increased 74%, both are now at record levels. When students graduate, they’re expected to start paying off their loans whether they have a job or not. Some lenders allow what they call “grace” periods which is basically putting off payment until employment. However, interest continues to build during this time. If graduates struggle to find a job, post-graduation debt can quickly lead to serious financial problems.
For those grappling with student loan debt, understanding the options available can be crucial. At Debt Advisors, we recognize the mounting pressure many face. Exploring resources such as our guide on student debt or learning about the top 10 strategies to avoid excess student loan debt can be beneficial. These tools can offer valuable insights and strategies to navigate and potentially alleviate such burdens.
A reputable WI bankruptcy attorney can provide some insight into the series of events that happen if you default on a federal (as opposed to a private) student loan. In previous years, only the worst-off borrowers could get education debt erased. But, recent court decisions on this topic are constantly challenging this notion. Therefore, never assume that discharge of student loan debt is impossible. It may not be easy, but it is possible.
Helping people with college loan debts is a big challenge that an experienced bankruptcy firm like Debt Advisors Law Offices takes pride in. For more detailed information and assistance, you can visit their Milwaukee office. They are well-equipped to guide you through the complexities of student loan debt. Call today for a free consultation: 888-660-5413.