The average St. Louis resident owes more than $19,000 to student loan companies, according to LendingTree. As a result, St. Louis is 22nd in the top 25 cities with the highest student debt. With the Federal Reserve Bank of St. Louis stating that more than 44 million Americans are currently battling in excess of $1.5 trillion of student debt and taxes in the Brentwood area sky-high, how are individuals living in area going to repair their finances?
A rise in tuition fees
Ten years ago, Americans faced just $619.3 billion of student debt. This was still a significant sum, but nothing compared to the latest figures released from the Federal Bank of St. Louis. One of the main reasons why student debt in St. Louis and the rest of America has risen so significantly is because the cost of tuition has increased by 28 percent since the 2007-08 school year, according to The Center on Budget and Policy Priorities. The average student in Brentwood, Maplewood and Richmond Heights now pays $34,740 to study at a private college or $9,970 at a public college.
Employers pledge to help their employees
American entertainment company, Hulu, is leading the way in overhauling the student debt deficit in the country. They’ve pledged they will match their employees’ student loan repayments, up to the sum of $1,200, in a bid to benefit their staff’s finances and overall wellbeing. St. Louis is home to some of the country’s biggest businesses, including Exxon Mobil, Apple, Berkshire Hathaway and McKesson who have been recognized on the annual Fortune 500 list. With their combined value of trillions, now is the time for them to follow Hulu’s lead and help their local employees cut their outstanding student debt.
Eliminate federal school loans
At present, there are more than 70 U.S colleges who have banned student loans and are offering no-loan aid packages instead. Washington University in St. Louis is one of the colleges who have signed up to the program. Under their terms, students who have a family income of less than $75,000 will receive a non-repayable student grant so that they can continue their education worry-free. Thankfully, Washington University is just four miles from Brentwood, so if you’re considering enrolling in college, be sure to take a look at the package as it may help cover your tuition.
The news that St. Louis ranks 22nd in the cities with the most student debt is likely to shock local residents. It’s great to hear that businesses in America are taking steps to alleviate their employee’s student loans, although, it would be beneficial if local businesses in Brentwood, Maplewood and Richmond Heights and the rest of St. Louis followed suit. If you need some help to get out of student loan default. And remember, it’s also worth checking out colleges which offer no-loan aid packages before taking out a traditional student loan.