The hope of a student loan forgiveness will not pay the bills. Here’s what you can do instead | Smart change: personal finance
Thirty years ago, a high school graduate who wanted to attend college or university envisioned an average tuition fee of $ 15,160 for a private non-profit school and only $ 3,190 for public universities. In 2020, that number is closer to $ 35,087 for private colleges and $ 9,687 for public schools. Once the cost of books, accommodation and food and other fees are added, paying for college with a part-time or summer job increasingly becomes a thing of the past.
Students today are turning to loans instead, resulting in a widespread debt crisis. Americans currently owe a total of $ 1.56 trillion in student loans, changing the shape and course of the US economy. Instead of buying a car or a house, millennials are focusing on finding a job that will allow them to make loan payments without default.
Some States Are Taking Steps to Help: States adopt a Student Borrower Bill of Rights and offer a variety of loan repayment programs for qualified graduates. In New York City in 2017, for example, Governor Andrew Cuomo announced a program that would offer free public college tuition to residents whose families earn less than $ 125,000 a year. A more recent change across the country in 2020: Due to the coronavirus pandemic, the first student loan payments for recent graduates are postponed from November 2020 to January 2021.
But not all states need the same assistance, so Stacker look at WalletHub data from 2020 to determine where student debt is hitting the country hardest. WalletHub used 11 metrics to rank each state’s student debt and scholarship and student work options. They separated these two main dimensions, but used them to establish an overall state ranking, where a higher ranking indicates higher student debt.
Read on to see where your condition falls on the list.
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