College student debt continues to
increase at a rate of 5% a year as the Project on Student Debt reported last week that the bachelor degree graduates of the class of 2011. PSD found the 66% of all graduates leave
college with debt that averages $26,600.
This debt both federal and private loans is a burden on new graduates as
they seek jobs in a very difficulty economy.
The debt per student varies
greatly by state and college from a high of $32,440 for New Hampshire and a low
of $17227 in Utah. Massachusetts comes
in at 14th from the top with an average student debt of $27181.
Because of “reform” of the
bankruptcy laws student loans are now not dischargeable, that is an individual
who declares personal bankruptcy can have her credit card loans wiped out but
not her student loans. Because of this
change in bankruptcy law, Nobel prize winning economist Joseph Stiglitz in his
book the Price of Inquality argues
that student debt is creating “partially indentured servants.” This refers to the practice during American
colonial times of individuals agreeing to servitude in the new world for a
period of usually seven years in exchange for a loan to carry them to the new