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The Reality of Student Debt Is Different From the Clichés
- meritt 12y agoThe cited research [1] must have been written by an auto dealership. They conclude that since the monthly payment-to-income ratio has not increased, that all is well. Using their own data and a loan amortization calculator I conclude something quite different: 1992 Avg Graduate Debt: $20,000 Avg Loan Length: 7.5 Years Avg APR: 8.3% Monthly Payment: $299 Total Repayment: $26,933 2010 Avg Graduate Debt: $41,000 Avg Loan Length: 13.4 Years Avg APR: 5.5% Monthly Payment: $360 Total Repayment: $58,061 While the a $299/mo to $360/mo jump over the course of nearly 20 years is indeed small, I still think there's a serious issue here. [1] http://www.brookings.edu/~/media/research/files/reports/2014/06/24-student-loan-crisis-akers-chingos/is-a-student-loan-crisis-on-the-horizon.pdf http://www.brookings.edu/~/media/research/files/reports/2014...