Student Loan Debt Clock Ticking Fast for both Federal and Private Student Loans in US

Mark Kantrowitz, publisher of finaid.org, a college financial aid information, has posted a new “Student Loan Debt Clock” (www.finaid.org/studentdebtclock) that tallies an estimate of current outstanding U.S. federal and private student loans being amassed by college students and their parents.

Last June, FastWeb.com, also published by Kantrowitz, reported that the total student loan debt surpassed total credit card debt for the first time in financial history.

According to Kantrowitz analysis that was posted at finaid.org:

“Student loan debt outstanding totaled at least $830 billion as of June 2010, with roughly $665 billion in federal education loans and $168 billion in private student loans. The President’s FY2011 budget reports actual federal education loans totaling $605.648 billion as of FY2009. The first nine months of FY2010 involved approximately $59 billion in additional federal student loan debt.”

Jennifer Saranow Schultz of New York Times elaborated on Kantrowitz student loan debt calculating process:

“He started with the government figure for total federal and direct loans outstanding at the end of fiscal year 2009 of $605 billion. Then he estimated how much private loan debt was outstanding as of June 2010, and added an increment to account for the growth in federal loan debt from September 2009 to June 2010.”

“He came up with a starting figure of $830 billion in private and federal loans outstanding as of June 2010, which he further estimated was growing by about $2,854 a second.”

However, finaid.org stated that the debt clock is intended for entertainment purposes only and the actual total outstanding student loan debt are more volatility at the beginning of each semester.

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