In addition, private lenders might be more aggressive in pursuing payments from borrowers because the borrower has fewer options for repayment.
As the number of college students with credit cards increases, so does their level of credit card debt. At least some of these students are using these credit cards to pay educational expenses, but these charges (estimated at roughly an average $1,000 a year for students who use credit cards for educational costs) are not being included in most student loan estimations. If they were, then $25,000 for a four-year education would be closer to the mark. This debt, of course, comes with higher interest rates and a lack of subsidies.
The question of whether student debt levels are excessive has been on the public policy agenda for three decades. Between 1976 and 1980, the volume of federally guaranteed student loans more than tripled, and serious talk of “overburdening a generation” arose in the public media.
Another factor that hides the real level of student loan debt is credit card use
However, just how overburdened that generation became is difficult to ascertain. Unlike my college friend, members of that generation are not always open about their student loan problems or the long-term effects-both positive and negative-of a university education funded through loans. Lees verder
