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Yowza! 1 in 5 homes has student debt. What to do?

Posted by Joe Allen-Black  October 1, 2012 03:24 AM

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The number of people taking on student loans keeps rising. Considering the economy, that fact alone shouldn't be surprising. But a new study released by the Pew Research Center finds that a staggering nearly 1 in 5 homes has student debt -- a number that won't be shrinking any time soon.

The Associated Press reported from the data:

The analysis by the Pew Research Center found that 22.4 million households, or 19 percent, had college debt in 2010. That is double the share in 1989, and up from 15 percent in 2007, just prior to the recession — representing the biggest three-year increase in student debt in more than two decades.

The increase was driven by higher tuition costs as well as rising college enrollment during the economic downturn. The biggest jumps occurred in households at the two extremes of the income distribution. More well-off families are digging deeper into their pockets to pay for costly private colleges, while lower-income people in search of higher-wage jobs are enrolling in community colleges, public universities and other schools as a way to boost their resumes.

Read more from the Pew report. Here is an analysis from the AP.

So what can you do if you're one of the those households? Here is advice from Jennifer Lane, a certified financial planner with Compass Planning, who does regular reports from NECN.

Some of Lane's advice includes seeing you're eligible to make a different payment plan and learning how to get organized about your debt.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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ABOUT MANAGING YOUR MONEY
Local finance professionals share insights and advice on issues such as budgeting, managing debt, and retirement planning.

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D. Abraham Ringer is a CERTIFIED FINANCIAL PLANNER practitioner and a Financial Adviser with Morgan Stanley Global Wealth Management in Boston. He is registered in MA, NH, NY and several other states to which his articles are directed. For more information please visit www.morganstanleyfa.com/ringer
Financial Planning Association™ of Massachusetts has 900 members who specialize in the financial planning process. Many of its members engage in philanthropic pro bono work in their communities, recommend legislation, elevate public awareness, promote financial literacy, and advocate for sound economic and tax policies.
Odysseas Papadimitriou is the founder of CardHub.com, a credit card and gift card marketplace, and WalletHub.com, a personal finance site. He has more than 13 years of experience in the personal finance industry, and previously served as senior director at Capital One.

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