student-loans

Student loan debt has become an increasing problem in recent years. As the New York Federal Reserve notes in a 2013 report, “Over the last eight years, aggregate educational debt outstanding has almost tripled, rising to nearly $1 trillion and becoming the largest consumer liability after mortgages.”

From 1998 to 2008, while enrollment at traditional colleges and universities increased just 20%, the for-profit sector grew dramatically, rising more than 230%. Much of the new institutions’ growth came through minority and low-income students, which make up 37% and 50% of the schools’ enrollments, including many veterans.

As hundreds of thousands of newly minted college graduates pack away their cap and gowns each year, many have one common worry: “Will I be able to find a job?” Rising student loan debt has been the focus of public debate, but the Great Recession has made the overall situation for new graduates that much more difficult.

College tuition costs, which have been steadily rising over the past few decades, may put higher education out of reach for many aspiring students. To provide more financial resources for these students, Congress has raised the ceiling on the amount qualified undergraduates could borrow from the federal Stafford Loan program.