Student loan debt is causing financial problems for many young Americans. The amount of student loan debt in the United States is over $900 billion. Student loan debt will continue to be a problem for graduates, because many states are reducing financial support for students and schools are increasing tuition. Borrowers cannot default on student loan debt when filing for bankruptcy.The student loan problem may affect future generations as well. Many borrowers are taking 20 or 30 years to repay their debt. Graduates in debt are not likely to save for retirement or donate to their colleges. Additionally, students could still being paying off their student loan debt when their children are attending college.
Experts do not recommend borrowing more than $25,000 for college, which represents the cap on loans from the federal government. Loans from the government generally have better terms than private loans. Experts also suggest that students should not borrow more than they expect to earn as a starting salary when they graduate.
Theo Keith, David Earl & Blake Hanson, Student Loan Crisis Threatens Financial Futures, https://www.msnbc.msn.com/id/43584744/ns/business-personal_finance/ (accessed July 5, 2011).