2016 Report on the Real Cost of Student Loans
Introduction
2016 Report on the Real Cost of Student Loans
Student loan debt now stands at more than $1.35 trillion, a figure that has nearly tripled over the past decade. With more than 43.3 million Americans holding student loan debt, according to the Federal Reserve, understanding the true cost of student loan debt has become more important than ever before.
Estimates for the average student loan debt held by each borrower vary widely. The Institute for College Access & Success estimates average student loan debt at $28,950 per student, while other experts have reported that the average figure for the class of 2016 is now along the lines of $37,172.80 per borrower.
For student borrowers, however, the cost of student loans is much higher than just the sum of principal and interest. GoodCall conducted an analysis on the true cost of student loan debt to reveal how much student loans are really affecting college graduates, from delays in homeownership and lower retirement savings to lifestyle sacrifices and lessened financial security overall.
GoodCall’s study encompasses three life areas: Homeownership, Retirement, and Lifestyle. Each section contains unique findings and insight into the real cost of student loans for borrowers.
GoodCall’s research is based on a 23-year old graduate with a bachelor’s degree who starts earning the current average starting salary of $50,651[1] after graduation. The analysis compares four debt scenarios:
A graduate who has no student loan debt
A graduate who has $12,000 in student loans
A graduate who has $28,950[2] in student loans
A graduate who has $50,000 in student loans
Before diving into the cost of student loans for college graduates, here’s what student loans look like today at the national and state levels:
43.3 million
Americans who have at least one outstanding student loan
1.35 trillion
Total dollars owed in federal and private student loans
7 in 10 students (69%) who graduated from public and nonprofit colleges in 2014 graduated with student loans.