To Thee I Owe For This Degree They Bestow

If you are graduating college this year Congratulations! And, oh yes don't be alarmed at the loan debt you have accrued, you are not alone.

(insert sounds of tires screeching to a halt or as I prefer to visualize the old Flintstone's Cartoon with Fred Flintstone bringing his car to an abrupt stop)

Sorry to bring you down, but unfortunately the reality is that the Class of 2011 will be graduating with an average of $22,900 in loan debt. According to YAHOO! Finance in reference to an article from the Wall Street Journal, this year's graduates will be the most indebted ever. There is an 8% increase this year compared to 2010 and a 47% hike (in inflation adjusted terms) from more than a decade ago.

According to the same article, the good news is that the investment is worth it (Yes! There is a silver lining). Furthering your education is a much better reason to borrow money rather than building up debt for cars or expensive homes. Statistics also show that as of 2009, the annual pre-tax income of households headed by people with at least a college degree exceeded that of less-educated households by 101%, up from 91% in 2006. As of April, the unemployment rate among college graduates stood at 4.5%, compared to 9.7% for those with only a high-school diploma and 14.6% for those who never finished high school.

View the YAHOO! Finance/ WSJ article in-full here.

And, stay tuned to Savvy Student because we will have some suggestions on minimizing your loan debt and tips for paying back all those lovely loans.

~Savvy Student