New Yorkers Student Loan Debt Has Doubled In 10 Years
According to the New York State Comptroller, New Yorkers are bearing down on 82 billion dollars in student loan debt more than double than what it was 10 years ago. IN some ways this cripples the local economies because the more debt individuals have the less they can spend in the economy, in real estate, tourism, and entertainment. And it gets worse if the borrowers begin defaulting.
‘New Yorkers’ student loan debt has more than doubled over the last decade, State Comptroller Thomas DiNapoli said Tuesday.
Student loan debt in New York grew to $82 billion in 2015 from $39 billion 10 years ago, DiNapoli said. The debt is a drag on the broader economy and makes paying for daily necessities more difficult for recent graduates.
“New Yorkers from all walks of life have found higher education the path to a more satisfying and secure life. But many who take out student loans face real difficulties in paying back their debts,” DiNapoli said. “New Yorkers saddled with college debt have less disposable income and often have to push off buying a home or saving for the future.”
The average college graduate in New York owes $32,000 in student loans, compared to a nationwide average of $29,700. The situation is even worse for borrowers in New York City, who owe an average of $35,100 each.
Part of the increase in debt comes from rising tuition rates. Average tuition rose by more than 50 percent in New York since 2005 – that’s more than twice the rate of inflation.
The tuition increase has more students taking out loans to pay for classes; the number of student loan borrowers rose by more than 41 percent as tuition rose.
College graduates with student loans are less able to purchase new homes and provide for their own or their family’s needs, DiNapoli said. The burden of student debt can create long lasting financial challenges for borrowers.
“Such struggles have implications not only for those individuals and families with such debt but also for the state’s economy,” DiNapoli said. ‘
Through student loan refinancing, borrowers can refinance high-interest student loan debt and potentially score a lower rate, saving thousands of dollars in interest over time. Those savings can then go toward extra payments to get out of debt even faster. Additionally, borrowers can select a longer term to obtain a lower monthly payment as well.