Contribute
Connect with the GOP:

research

Under Obama, Student Loan Debt Sets New Records

- September 27, 2012

Candidate Obama Promised To Tackle The Rising Cost Of College

Obama In 2008: "The Key Is Going To Be Going Forward, Making Sure That Young People In The Future Are Able To Afford To Go To College." OBAMA: "As I said, what we are looking at potentially is being able to consolidate some of the loans, and if they are part of a broader pool, we may be able to lower interest rates on the debt that they already owe. But the key is going to be going forward, making sure that young people in the future are able to afford to go to college." ("Barack Obama Answers Your Questions," MTV, 11/2/08)

  • Obama Promised To Take Steps To Lower Student Loans. OBAMA: "And I meet students - I think the average student is taking out $25,000 to $30,000. That's a huge burden, especially in a time when wages and income are not going up. So here is what we want to do: increase the Pell Grant program, eliminate banks as middlemen from the direct loan program - they're taking out billions of dollars in profits - take that money, apply that to increasing the number of loans that are out there and reducing the rates, and then what I want to do is provide a $4,000 tuition credit for every student, every year, in exchange for national service." ("Barack Obama Answers Your Questions," MTV, 11/2/08)

Under Obama, A Record One In Five Households Have Student Loan Debt

The Share Of Households With Student Loan Debt Has "Increased Sharply." "Even as the nation's households have reduced their total debt in recent years, the share that owes student loans has increased sharply, an analysis of the latest available Federal Reserve data shows." (Mary Beth Marklein, "Report Shows Increase In Those With Student Debt, Loans," USA Today, 9/27/12)

"Student Debt Has Stretched To A Record Number Of U.S. Households - Nearly 1 In 5." "With college enrollment growing, student debt has stretched to a record number of U.S. households - nearly 1 in 5 - with the biggest burdens falling on the young and poor." (Hope Yen, "Student Debt Stretches To Record 1 In 5 Households," The Associated Press, 9/27/12)

  • "22.4 Million Households, Or 19 Percent, Had College Debt In 2010… Up From 15 Percent In 2007." "The analysis by the Pew Research Center found that 22.4 million households, or 19 percent, had college debt in 2010. That is double the share in 1989, and up from 15 percent in 2007, just prior to the recession - representing the biggest three-year increase in student debt in more than two decades." (Hope Yen, "Student Debt Stretches To Record 1 In 5 Households," The Associated Press, 9/27/12)

"Across All Households, The Average Outstanding College Debt Increased From $23,349 To $26,682." "Across all households, the average outstanding college debt increased from $23,349 to $26,682. For the poorest 20 percent of households, the average debt rose from $19,018 to $20,640." (Hope Yen, "Student Debt Stretches To Record 1 In 5 Households," The Associated Press, 9/27/12)

"Among Households Headed By Someone Younger Than 35, A Record 40% Owe Student Debt, The Highest Share Among Any Age Group." "The Pew center's deeper dive into the data found, that among households headed by someone younger than 35, a record 40% owe student debt, the highest share among any age group. Among households earning less than $21,000, outstanding debt represented 24% of household income." (Mary Beth Marklein, "Report Shows Increase In Those With Student Debt, Loans," USA Today, 9/27/12)

"Because Of The Sluggish Economy, Fewer College Students Than Before Are Able To Settle Into Full-Time Careers Immediately Upon Graduation, Contributing To A Jump In Debt." "Because of the sluggish economy, fewer college students than before are able to settle into full-time careers immediately upon graduation, contributing to a jump in debt among lower-income households as the young adults take on part-time jobs or attend graduate school, according to Pew." (Hope Yen, "Student Debt Stretches To Record 1 In 5 Households," The Associated Press, 9/27/12)

Student Loan Debt Is "Crushing The Economy"

Student Debt Has Become "Everyone's Problem Because It Is Crushing The Economy." "Now we're talking about how student debt is everyone's problem because it is crushing the economy." (Dan Kadlec, "New Frontier In Student Debt: It Stifles The Housing Recovery," Time's "Moneyland," 9/4/12)

Student Loan Debt "Is Shutting Young People Out Of The Housing Market, Further Depressing What Is Already The Economy's Most Troubled Sector." "New findings conclude that this debt is shutting young people out of the housing market, further depressing what is already the economy's most troubled sector." (Dan Kadlec, "New Frontier In Student Debt: It Stifles The Housing Recovery," Time's "Moneyland," 9/4/12)

According To A Recent Report, "As Monthly Student Debt Payments Increase For College Graduates, So Does Their Struggle To Qualify For A Mortgage." "As monthly student debt payments increase for college graduates, so does their struggle to qualify for a mortgage. Looking at a key factor in qualifying for a mortgage-the debt-to-income ratio-we find some disturbing results." (Jen Mishory and Rory O'Sullivan, "Denied? The Impact Of Student Debt On The Ability To Buy A House" Young Invincibles, 8/14/12)

  • "Home Purchases Create Jobs And Spur Economic Growth. Cutting Out A Cohort Of Graduates Who Previously Participated In This Market Will Add Another Drag To An Economy Only Just Emerging From The Great Recession." (Jen Mishory and Rory O'Sullivan, "Denied? The Impact Of Student Debt On The Ability To Buy A House" Young Invincibles, 8/14/12)

"The Student Loan Burden Can't Help But Forestall Things Like Auto And Home Purchases. Starting Salaries For College Grads Have Not Kept Pace." "Student debt held at graduation has jumped 46% since 2000; total debt held by the public has soared by 511% in that period. Fed Chief Ben Bernanke has said he does not believe student loans will foment another financial crisis, as mortgage debt did five years ago. But the student loan burden can't help but forestall things like auto and home purchases. Starting salaries for college grads have not kept pace." (Dan Kadlec, "New Frontier In Student Debt: It Stifles The Housing Recovery," Time's "Moneyland," 9/4/12)


Previous post

Don't Plan On It

Next post

From Bad To Worse
Republican National Committee

Connect With Us

Republican National Committee

Follow GOP

Chairman Reince Priebus

News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com