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College graduates facing larger mountains of debt

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    Average student loan debt soars to over $26,000

  • Duration 2:42
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We're learning of the mountains of debt that many college graduates face -- are getting much bigger.

Nationwide college loan debt soared to an average of 26600.

Dollars for each borrower in the class and -- eleven.

That the job of 5% from just the previous year according -- nonprofit institute for college access and success.

That figure is the highest we've seen in the city seven year history the report also found that two of every three college students finish school with student loan debt.

Was -- chief business correspondent views news and world report Rick Newman is the author of the book rebound yours how winners -- back.

Or -- from success.

Sit back to success of course I can't read which is -- -- -- a problem all my life in this job.

College is dead is it starting to look like the new bubble.

Some people think cell clearly this has been a trend we've seen more and more people with more and more dead in if the average is 2627000.

Dollars or some people who have 50000 dollars even a 100000 dollars in debt.

Now I don't think this is anything like the other bubbles that we've gotten accustomed to most importantly the housing bubble.

I don't think it's anything like that there's some question about whether we're gonna see some defaults -- -- and and a spike in defaults coming over the next few years we could.

Abel -- not be on a scale that would you know threaten -- whole financial system are they educational system or anything like that.

But it's a -- so it's a major difficulty for a lot of people no doubt about for a lot of young people that does best statistic that I can get my hands on suggests that.

Half of all college students who graduate don't get a job out of college police in their field of ten of course that's the problem is that people can't start paying off these -- when -- get -- -- -- get a little bit of grace period.

But if we don't really do something about the job problem I mean you cannot.

Pay down that much debt with a minimum wage job or retail job or something like that that's the real problem.

I think on the flip side I'm a little Russell alarmist about this there's -- some other people because at least for that -- you're getting something valuable.

You know the average price of a new car these days about 29000 dollars so that's close -- this amount of debt.

To be much much better off spending that money on it on an education -- the data is still more than convincing that it pays to have a college education.

You know after consulting firms like McCain here saying we're gonna have a shortage of college graduates a major shortage of them in the by the year 20/20 -- got to have an education.

It be great if you were starting to find better ways to shop for college -- -- -- if they can get in three years lower the price with online options things like that the price of college has gone up way fast -- price war among colleges and that's what we need we need something that looks like competition start getting these these costs to come down.

And there's just not much that's -- to force colleges to lower their tuition and they're sort of they're sort of doing it in little ways but nothing big yet.

All right well more great news written thing.

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