Beyond.com, Inc., the largest niche career network for business professionals, surveyed visitors across its network of more than 15,000 sites to discover how many business professionals are still paying off their student loans.
More than 3,100 Beyond.com Network visitors responded to the survey that asked, ìDo you still have student loans that you are paying off?î The survey found that more than 33 percent are still paying off student loans, while the remaining respondents reported that they do not currently have any student loans.
Of those respondents with student loans, nearly 47 percent owe between $10,000 and $25,000, 31.69 percent owe $25,000 to $50,000, 19.06 percent owe more than $50,000, and 2.36 percent owe less than $10,000.
According to the U.S. Education Department and the National Center for Education Statistics (NCES), the average price of college has grown much faster than the rate of inflation; the average annual tuition at public four-year colleges and universities is $5,836 in 2006-07, up 268 percent from 1976-77. Private college tuition is up 248 percent to $22,218 a year. As a result, more students are borrowing money for college, with the percentage jumping from 34 percent in 1971 to 65 percent in 2000-2001.
College graduates are also faced with lower entry-level wages when entering the workforce. The NCES reports that thirty years ago, a male college graduate could make the equivalent of $51,223 a year in 2004 inflation-adjusted dollars. In 2004, he actually earned a lesser amount of $50,700. However, according to the NCES, wages for women have risen.
ìWith the rising cost of education, itís not surprising that one-third of professionals are still paying off their student loans,î says Rich Milgram, CEO of Beyond.com, Inc. ìIt can be a financial strain on graduates who are paying off loans while earning entry-level wages. Professionals should research and take advantage of available options to help alleviate this burden such as education-related tax credits.î
Graduates can effectively manage their student loans by following these few simple tips:
ïPay off as much of the loan as possible during the six or nine month grace period ñ it goes directly to the loanís principal before interest starts accruing.
ïConsolidate loans into one simple payment, which can many times lower interest rates.
ïSet a budget and stick to it.
ïResearch education-related tax credits and deductions.
ïSign up for direct withdrawal to ensure loan payments are timely.
ïStrive to pay above the minimum loan payment.
For additional information on student loan consolidation and other career resources, visit:
Beyond.com, Inc. Finds One-Third of Professionals Are Still Paying Off Student Loans
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