Attending college is expensive and students are often forced to take out loans to cover the cost of tuition. Many students graduate college with a large amount of education debt which is often scheduled for the start of repayment just months after leaving school. The typical debt students graduate college with can affect many areas of life from where they live after graduation to the health of credit ratings.
Student Loan Debt
According to Newsweek's web site, as of 2009 the average college student graduated with over $24,000 in student loan debt. This was a 6 percent increase from the previous year. The size of the debt the average student leaves school with can make it difficult to secure new lines of credit because of the student's lopsided debt-to-income ratio. This could hurt a student's credit score. That, in turn, may hurt his ability to secure certain types of finance jobs that require contact with large volumes of cash.
Credit Card Debt
The workload of college courses can be demanding and many students find it difficult to maintain a part-time job and keep up with school work. This is why many students turn to credit cards to make up for shortfalls in cash and to pay expenses student loans don't cover such as textbooks. According to MSN Money Central, as of January 2009 the average college student graduated with $3,262 in credit card debt. It could take several years to pay down that amount of debt if only the minimum payment amounts are made each month.
Highest Debt by State
Certain locations in the United States show higher average student loan debt than others. This could be attributed to the universities in those particular areas and a higher cost of tuition as well as a higher cost of living. According to Newsweek's web site, as of 2009 students graduating from colleges and universities in the District of Columbia and New Hampshire areas carried the largest average debt with $30,033 and $29,443, respectively.
Lowest College Debt by State
Some states across the country have universities and colleges that offer tuition rates substantially lower than other schools. These are usually state-funded institutions that offer discounted tuition rates to state residents who choose to attend a school in-state rather than leaving the state to attend college. According to Newsweek's website, as of 2009 college graduates in Georgia and Utah carried an average graduation debt of $16,568 and $12,860, respectively. A low amount of total debt puts a graduate in a much better position to begin paying her student loans off and find employment without feeling the anxiety of a massive debt.
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