A report has recently highlighted how many college students are experiencing various problems and issues when it comes to the loans that they have taken out for their education. Many students have found themselves lumbered with debt in order to fund their education and this has created concern amongst officials due to the rising cost of education and the ever-increasing level of debt being accrued by students.
The research was carried out by Citizens Bank, which recently revealed the results of the study. According to the data from the research, many younger people are having problems when it comes to recognizing what they owe and what rate of interest they are paying amongst other things.
Students unsure whether education was worth it
Officials that were involved in the research said that many students had no idea at all with regards to the amount that they had outstanding on their student loans. In addition to this, many were clueless with regards to what the rate of interest was on the loans that they had taken out. A higher than expected 60 percent of those polled as part of the study said that they didn’t have any idea with regards to when their loans would be paid off. One third said that they did not know how much interest they were paying on their loans.
The report went on to state that the average amount students owed when it came to student loan debt was around $41,000. For many, this will mean being in debt for years to come after graduating from college or university. In fact, some students are so worried about the amount of student debt that they have hanging around their necks that they have questioned whether further education was worth the cost.
One of the researchers said that it was extremely unusual for people to have such high levels of debt yet not have any idea with regards to how much they owed and what rate of interest was being charged. However, she added that this situation did seem to be commonplace amongst the student population, which was somewhat worrying.
When polled as part of the study, 57 percent of graduates said that they regretted taking out as many loans as they did while they were studying at college or university. Moreover, 36percent of graduates stated that if they had been more aware of the costs associated with college or university they would not have opted for further education.