Federal Reserve: Student Loan Debt At Historic High

These days, going to college might land people the job of their dreams, but new numbers released by the Federal Reserve Bank of New York show they’ll be paying for it for possibly decades.

No question — a college degree will give graduates a leg up on their competition, but they’re almost gauranteed to graduate swimming in debt.

The CSU and UC systems both have raising tuition costs, and going to junior college isn’t cheap either.

“We took a loan out for our son,” said Laura MacDonald, a Palm Desert resident who is still paying off that loan. “Both of my kids went into the military.”

So, for that reason, MacDonald said it was worth taking out the money.

Edgard Gazo is a telecom engineer and has two children.

“It was worth it,” he said.

Gazo graduated with a bachelor’s degree from Westwood College but had to take out $28,000 in loans.

“A lot of times, it was hard, because you see the money that you have to pay for the education, and you see the money that you have to spend, and it’s like not that much,” said Gazo. “But, it’s the only way.”

Student loan debt in America has grown by 511 percent since 1999, according to the Federal Reserve.

Currently, students are $930 billion in debt nationwide, and that number has been rising by about $100 billion a year.

By the end of 2011, students will collectively be more than $1 trillion in the hole.

Graduates told News Channel 3 that they couldn’t imagine having to deal with loans today.

“It’s too difficult,” said Michele Strader, a personal trainer who graduated from CSU Northridge with a degree in kinesiology. “Even just junior college is expensive.”

“(I) took out $5,500 now, and (I’m) probably take about $4,000 more by the time I’m done here,” said Naomi Leutu, a student at College of the Desert.

Jeremy McGuffie, 22, plans on re-enrolling into COD.

He’s already taken out $15,000 in loans — but he said that’s the only way he can get to where he wants to go.

“(I’m) finishing my law enforcement (degree) to be in the SWAT, and that’s exactly what I want to do,” he said.

Last month, the unemployment rate for those with a college degree was a little more than 4 percent.

The jobless rate was more than twice that number for those with only a high school diploma.