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- Student-loan debt in the US is at an all-time high.
- The consequences of student-loan debt have created a domino effect — millennials are delaying life milestones because they can’t afford them.
- Democratic presidential candidates have proposed policy solutions to offset the cost of college.
- Visit Business Insider’s homepage for more stories.
America is suffering from a student-loan debt crisis.
While wages have increased by 67% since 1970, according to a Student Loan Hero report, college tuition has increased at an even faster rate. Consequently, student debt has reached record levels.
It’s part of the Great American Affordability Crisis — coupled with a fallout from the recession and a high cost of living, student-loan debt has made it difficult for millennials to save and has forced them to delay major milestones like getting married, buying a house, and having kids.
Democratic presidential candidates have been proposing policy solutions to offset the cost of college. Sen. Elizabeth Warren introduced a $1.25 trillion plan to forgive most existing student-loan debt and provide universal free college. John Delaney, Seth Moulton, and Sen. Kirsten Gillibrand have proposed student debt forgiveness or subsidized college for students who go into national service.
Meanwhile, Sens. Bernie Sanders and Amy Klobuchar, Rep. Eric Swalwell, and entrepreneur Andrew Yang have offered their own proposals to reduce the cost of college and student loan burdens.
Here are 10 facts that show just how dire student-loan debt in America really is.
1. The national total student debt is now over $1.5 trillion.
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The average student loan-debt per graduating student in 2018 who took out loans is $29,800, according to Student Loan Hero.
2. College tuition has more than doubled since the 1980s.
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From the late 1980s to 2018, the cost of an undergraduate degree increased by 213% at public schools and 129% at private schools, adjusting for inflation, according to Student Loan Hero, citing stats from The College Board.
During that time frame, tuition rose from $3,190 to $9,970 annually for public schools and from $15,160 to $34,740 for private schools.
Wages, meanwhile, have increased by 67% since 1970, according to a Student Loan Hero report.
3. Three million senior citizens in the US are still paying off their student loans.
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Young people aren’t the only ones paying off their debt. More than 3 million Americans aged 60 and older owe more than $86 billion in unpaid student loans, reported INSIDER’s Kelly McLaughlin, citing Consumer Financial Protection Bureau (CFPB) data seen by CBS News.
To pay it off, they’re turning to their Social Security benefits.
See the rest of the story at Business Insider
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Source: Business Insider – hhoffower@businessinsider.com (Hillary Hoffower)