College students graduating this year are leaving school as the most indebted class in history.
From the Wall Street Journal:
Along with the average student debt, the share of students taking out loans to fund college is also increasing. Whereas 64 percent of students graduating with a bachelor’s degree a decade ago left school having to pay back a loan, that same figure stands at nearly 71 percent in 2015.
Parents of college students are also feeling the pressure. The average debt among parents taking out loans to help their children pay for secondary education increased to $30,867 in 2015 from $29,684 last year. Among graduates, 17 percent are being helped through school financially by their parents taking out loans.
In total, the 2015 education debt is estimated to reach $68 billion for students graduating with bachelor’s degrees and their parents.
But why are students and parents putting up with the increased debt? Because not going to college means falling behind your college-educated counterparts in the labor force.
In 2014, the median weekly earnings for individuals working full-time with no higher than a high-school degree were $668, while those for individuals with a bachelor’s degree or higher stood at $1,193 — nearly double. College graduates also face a lower unemployment rate.
