Amount of Debt

• The amount of debt that students graduate with is staggering. The average college student graduates with about $24,000 in student loans to start paying off (as of 2009). According to the "Wall Street Journal," student-loan debt is the largest type of debt held by Americans, even more than credit-card debt. Americans had over $829 billion in student loan debt outstanding as of June 2010.
  
  

Student Debt Persists

• Another major concern surrounding the issue of student debt is the fact that it is a debt account that does not go away unless and until it is repaid, even in the case of bankruptcy. Student debt is not tied to anything of tangible value, like a mortgage loan, which can grow in value and gives the borrower a home to live in. Students who don't get professional jobs after school end up with a large debt burden to pay off without the income they anticipated.
  
  

Getting Further Financing

• When students graduate from school with tens of thousands of dollars worth of debt, it puts them in a very troubling financial state. With that level of debt they will usually have trouble getting affordable financing for basic needs. For instance, a student with a high educational debt load may have trouble buying a car at reasonable rates, purchasing a home or getting a loan to start a business.
  
  

Avoiding Student Loans

• Due to the numerous issues associated with student loans, it is a smart idea for a student or his parents to avoid student debt if possible. The planning process should start when the student is in secondary school. Students and parents can save money in a 529 plan, which is a federal tax-free investment designed for paying college costs. Students may also consider public in-state colleges -- at least for a couple of years. Private colleges usually cost more, and students who attend state schools can often take advantage of state grant programs.