Myth vs. Facts About Private Student Loans
Posted by YourLoanAdviser Staff
There is a lot of misinformation in the media about student debt. Check out this video that can help dispel some of those myths.
If you only read media reports about private student loans, you would get the impression that all students are drowning in debt. When you look at the facts, 69% of students graduate with less than $25,000 in loan debt.
The next impression you might get from the media is that because students are drowning in debt, they can’t pay back their loan debt. Again, the numbers just simply don’t support that meme. In fact, private student loan 90+ day delinquency rates fell to just 2.8% in Q3 of 2014.
If we continue this line of media impressions you might get, the next logical one is that today’s graduates can’t get jobs; hence they are drowning in debt and can’t pay their loans. However, the employment rate for college graduates is 10.5% higher compared to high school graduates.
And so if graduates can’t get jobs, then for sure they must think that their degrees don’t pay off. But in fact, college graduates take home $1 million more in lifetime earnings when compared to high school graduates.
Send us your responses to these myths and let’s keep the conversation going about what’s really happening with our nation’s college students.
For a detailed look and sources, check out the Myths Busted page.