People taking on more student loan debt - Bills.com News

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People taking on more student loan debt

Friday, Sep 4, 2009
By Lucy Sanderson

More people are relying on student loans in order to pay for college, a recent report shows.

According to the Wall Street Journal, which used statistics made available from the U.S. Department of Education, the amount of student loans taken out during the 2008-2009 school year increased by about 25 percent when compared to the previous year. In all, $75.1 billion in student loans were taken out by students and given toschools.

"The new numbers highlight how debt has become commonplace in paying for higher education," the Journal said.

The limit on federal Stafford loans also saw an increase, from $23,000 during the 2007-2008 school year to $31,000 in the 2008-2009 school year. The Journal noted that this increase may account for some money being lead away from private student loans .

Along with student loan debt, college students are also relying more on credit card debt when it comes to paying
for school. According to a 2008 survey from Sallie Mae, almost 30 percent of college students put their school tuition on their credit cards.

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