By Hadas Kuznits
PHILADELPHIA (CBS) — A new study finds more and more students are struggling with student loan debt.
According to new Federal Reserve data of delinquent student loan debt, 27% of borrowers have past due balances of at least one month.
“That makes a lot of sense. I know a lot of people that are drowning in debt and they’re trying to get a job and it’s just not working.”
Students say the stress of paying back student loans is a common topic on campus.
“People talk about it a lot, about how much they have to take out, about how long it’s going to take them to pay it off.”
And students say taking out loans is a bit of a catch-22.
“You have to go to school to get a better job, but then you’re already in debt and then you can’t afford to pay back your loans with the job you get, so you look into other options like med school, grad school, law school. You’re paying even more money just to be able to get more money, just to be able to pay off the money you already owe. It’s a huge loop.”
The study took into consideration data from Equifax credit reports.
Findings showed that 15% of the U.S. population has student debt and 40% of those under the age of 30 had outstanding student loans averaging over $20,000.
“Considering how much students actually have to take out, it would be very difficult to make a payment, especially if you have a liberal arts degree as opposed to something in the hard sciences or engineering.”