In the United States over the past few decades, student debt has increased in terms of the number of people with student loans and the average balance of those loans. In 2011, about two-thirds of college students had student loan debt, compared with less than 45% in 1993. The average amount borrowed increased from the equivalent of $14,500 US Dollars (USD) in 1993 to $26,600 USD in 2011. This is thought to be because college tuition and fees increased in the previous few decades at a rate that was four times the increase in the consumer price index, which is based on retail prices of goods and services.
More about student loan debt:
- The total amount of outstanding student loan debt in the US reached more than $1 trillion USD in May 2013, making student loan debt higher than credit card or automobile debt in the US.
- In 2013, more than 12% of people with student loans defaulted on their loans, compared with a default rate of less than 6% in 1999.
- It is estimated that almost 30% of people who take out student loans drop out of college before completing their degrees.