Student debt in America has now at a staggering $1 trillion, which is equivalent to about a 240 meter spherical money ball, according to an American student debt infographic by CheapestColleges.org.
Such is the amount that has been accrued by students going into debt, that if the U.S. government divided $1 trillion between every household, it would come out to $9,009. In other words, to spend $1 trillion in one year, you would have to spend $189 million a day. With Obamacare such a hot button issue now, $1 trillion would be enough to cover the cost of healthcare spending -- which amounts to $959 billion -- and still have a surplus of $40 billion. More surprisingly, out of the $1 trillion owed, 15 percent, or $150 billion, is owed to private lenders such as banks, while 85 per cent, or $864 billion is owed directly to the government.
Overall, student debt has ballooned from $240 billion in 2003 to $1 trillion in 2013.
American Student Debt Infographics
Students Now Owe $1 trillion, or 6 Percent, of National Debt
Trend Themes
1. Rising Student Debt - The ever-increasing amount of student debt in America presents an opportunity for disruptive innovations in the education financing industry.
2. Government Vs Private Lenders - The disparity between the amount owed to the government and private lenders highlights the need for innovative solutions in student loan refinancing and repayment.
3. Healthcare Vs Student Debt - The comparison between the cost of healthcare and student debt highlights potential opportunities for disruptive innovations in both industries.
Industry Implications
1. Education Financing - The rising student debt trend necessitates innovation in the education financing industry to develop alternative financing models and reduce the burden on students.
2. Financial Services - The significant amount owed to private lenders presents an opportunity for innovative financial services that offer more favorable terms and repayment options for students.
3. Healthcare - The comparison between healthcare spending and student debt calls for disruptive innovation in both industries to address cost and accessibility issues.