Most People Worry About Repaying Student Loans, Including The Rich

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"Most People Worry About Repaying Student Loans, Including The Rich"

Credit: Wall Street Journal

Anxieties about repaying student loans can affect anyone, regardless of race, gender, age (except for those over 60), or economic class. According to a newly released study by the Urban Institute, 57 percent of people with student loans worried about being unable to repay them.

Other demographics of people concerned about repaying their loans include:

  • 72 percent of those who make less than $25,000
  • 36 percent of those who make more than $100,000
  • 48 percent of those with a full-time job
  • 71 percent of those with a part-time job
  • 57-59 percent of people between the ages of 20 and 59

Considering the fact that student debt topped $1 trillion in 2012 and one in five households owed some amount of student debt, it shouldn’t come as a surprise that such a large portion of borrowers are worried about repayments. The average outstanding student loan balance in 2010 was $26,682, but 10 percent of student debtors owed more than $61,894.

Student loan debt has contributed to a stalled housing recovery and many students are now taking jobs they’re overqualified for just to have income.

Meanwhile, student loan interest rates will double on July 1 for those with subsidized Stafford loans unless Congress takes action. There are several plans that have been proposed and a bipartisan group of senators is currently negotiating its own solution.

Sens. Sherrod Brown (D-OH) and Kirsten Gillibrand (D-NY) have both proposed separate plans to allow borrowers to refinance their loans in an effort to decrease the costs of repayments, ultimately allowing for more money to flow into the economy.

Kirsten Gibson is an intern for ThinkProgress.

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