Student Loans More Burdensome Than Credit Card Debt
Debt for student loans is likely to continue its climb past credit card debt, and it is predicted that these loans will reach above $1 trillion this year.
A total of 66 percent of those who received bachelor's degrees in 2008 were in debt, compared with less than 50 percent in 1993, according to The New York Times.
There is such a thing as good debt, but credit card debt does not fall into that category, the news source added.
"When you think about what’s good debt and what’s bad debt, student loans fall into the realm of good debt, like mortgages," Susan Dynarski, a professor at the University of Michigan told the news source. "It’s an investment that pays off over the whole life cycle."
Many people have trouble paying off large amounts of student loan debt, the news source reported. President Barack Obama recently said that he and his wife Michelle, had higher student loan debt payments than mortgage fees after graduating from law school.
With any type of debt, it is best to not allow it to accumulate, and make all payments on time.