Student Loan Exceeds Credit Card Debt in The US2

Student loan amount has exceeded the total credit card debts for the first time in the American history. Millions of people have lost their jobs due to the recession and are unable to repay student loans. Students who have taken a student loan find it hard to find a job to repay the loan amount.

According to Mark Kantrowitz, publisher of FinAid.org, the total outstanding student loan is worth $850 billion and the most worrying factor is that some students do not even know on how much they owe and to whom.

In the past, getting a good job was considered to be the fruits of education. However, students are now forced to find good jobs with better pay packages to repay their student loans. Most students have started failing financially before they could complete their diploma.

Student loan borrowing grew by a whopping 25% last year and as more students were forced to borrow money due to parents having lost their job because of the recession. The dramatic drops in the property value have also made it difficult for their parents to recoup the educational expenses through a home equity loan.

The monthly student loan payments are turning out to be a scary number for most of the students. It amounts to almost $500 to $700 per month to repay the loan amount. As a commentator suggested it may be time for the students to work part time and save money to repay the loans.