U.S. student debt outstanding now stands at a record $1.56 trillion, almost doubling in the past 8 years.
… but growth is slowest ever
Student debt outstanding is just growing at 5.7% year on year, the slowest since records started. Are fewer students taking loans? No, but more are paying back more money at a quicker pace – perhaps due to a strong economy.
Is university education value for money?
On an absolute level, college graduates earn more than high school graduates. But is it value for money? That depends on a number of factors including the kind of education you invest on. Science, technology, engineering and medicine graduates earn significantly higher due to education (that those without a college degree). But you better off not going to college if you are to study arts or humanities. Charge off rates (loans never paid off) are highest for students who studied history, geography and philosophy. They are lowest for those who study engineering and medicine.