Student loan debt has almost quadrupled over the last two decades and is now far outpacing auto loans and credit card debt in the U.S., according to the Federal Reserve Bank of St. Louis. More than $1.7 trillion in student loans could turn into a debt crisis for America, which raises the question: Do all students need to go to college to have a successful career?
There’s a common misconception that a college degree is the main route to a successful career. While a four-year college degree is a great fit for many Americans, it’s not the right option for everyone. Too often, recent college graduates search for a well-paying job and discover their degree’s value isn’t what they expected, and they’re stuck with tens of thousands of dollars in student loan debt. Middle school and high school students should consider their future and weigh all the options, including broadening their considerations to include a career path in the trades. For example, a pipefitter earns $68,000 on average and that number can grow past six figures in some trade fields.
Today, more than half of America’s students finish higher education with debt, and it takes them a long time to pay it off. In 2022, the average federal student loan debt was $37,358. Per the Education Data Initiative, the average federal student loan interest rate in 2023 is 6.36 percent. The interest rate among all federal student loans increased 24 percent — up from 4.12 percent — between the 2020-2021
