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College Students Defaulting On Student Federal Loans

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MANKATO, MN -

College graduates are heading into a world where student debt exceeds credit card debt. New numbers out today paint a tough picture for students. An education may be priceless. But getting one costs a pretty penny. Sophomore Adam Ward says, "If they want to get an education they go to take out a loan and there's the debt."

Ward works full–time and still has to take out loans to pay for school. Ward says, "There is no savings, my paycheck is spent when I get it."

Junior Matt Arford says he takes out on average $6,000 each semester in loans. Arford says, "Hopefully I can start paying off my loans before I even graduate.

According to the U.S. Department of Education more than 9,500 Minnesota students defaulted on their federal student loans over the past 3 years. Minnesota's default rate may be at nine percent, but that's still significantly lower than the national average at 13.2 percent. Ward says, "My plan is to get a job hopefully using my experience and my degree I plan to have everything paid off in 5 years."

Minnesota State students graduate with an average of $22,600 in debt, but Ward says it's worth it. Ward says, "I see that as one more pickup truck that I could have had big deal, what's a pickup truck compared to an education."

Because while most cars last around 10 years, a good education lasts a lifetime.