Florida Students Defaulting On College Loans At Twice The National Rate

Florida students

Florida college students are struggling to pay back their loans.

“More than a fifth of Florida’s students loans — 21.5 percent — are delinquent or in default,” writes Donna Gehrke-White of the South Florida Sun-Sentinel, based on data released by WalletHub.com, a personal finance website.

Nationwide, about 11% of loans – or half that amount – are late or unpaid, says Gehrke-White.

What’s behind Florida’s significantly higher default rates?

Many graduates are still stuck in entry-level jobs stemming from the 2008 recession. In addition, Florida’s lower wages and higher cost of living limit young workers’ ability to pay back loans.

The Takeaway: Be careful how much student debt you take on in the first place, and keep it in proportion to your expected earnings. One rule of thumb: don’t borrow more than what you expect to earn the first year out of college.

 

About Mari Adam

Mari Adam, Certified Financial Planner™ and President of Adam Financial Associates Inc, has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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