The New York Times reported last week that student loan debt will outpace credit card debt for the second year in a row and will likely top $1 trillion this year. The average debt for bachelor’s degree recipients who borrow to pay for education is now $24,000—over a 10-year period that’s more than $250 per month in loan payments.
When used wisely, student loans can be “good debt,” providing students access to a lifetime of greater earnings. But for many students, poor use of their loans can tip the balance toward bad debt. That’s why the federal government should provide students with the resources they need to use loans to help them achieve their educational goals without racking up so much debt that it keeps them from reaping the benefits of their degrees.
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