The current debt of all students is already twice as high as 5 years ago. On average, a student with financial problems has $ 1755 to give away.
National Debt Register statistics are worrying
Where does this group’s debt come from? When choosing paid studies, you must pay tuition fees regularly. Unfortunately, some students sign a contract, pay the first installment, and they can’t afford another one.
According to the information provided by the National Debt Register, the number of educational debtors together with their total debt increases from year to year. Five years ago, indebted students had 5,192 unpaid tuition bills. Today this number already reaches 15,486 commitments.
The debts of students are not only due to arrears at private universities, it is public schools that account for almost 2/3 of outstanding student commitments. One thing is certain – most of the financial problems result from debts to universities.
Allan Backi, president of the National Debt Register of the Economic Information Bureau, reminds that financial discipline is a valuable skill at any age.
- You need to start learning as soon as possible, because bad habits will take revenge in adulthood. The first step is regular payment of tuition fees. This rational approach will pay off later when young people want to take out a loan for an apartment or their own business. However, when they have unpaid liabilities and are entered in the register of debtors, the bank will not grant them credit or loan. And this complicates the life of email – he says.
How much and who are the students guilty of?
- total debts to public universities, schools and training centers amount to $ 9.9 million
- financial arrears to private universities are $ 6.2 million
- on average, a public student must give $ 3,026 in public institutions
- in the case of private centers – $ 1,046
The indebted can be divided into two groups:
- university students – their total debt is $ 12.3 million
- students of post-secondary schools and training centers – the liabilities of this group reach $ 3.8 million
Why do students get into debt?
There can be many reasons for the financial problems of students. Sometimes it is a simple forgetfulness, and sometimes high costs of living in a big city. Dormitory or study fees, unexpected visits to doctors, materials for classes, food – all this costs money. Added to this is tuition fees and … the problem is increasing.
It also happens that students simply forget to unsubscribe from their old or interrupted faculty.
Not everyone is aware that the contract must be terminated. Even if you don’t use classes, you still have to pay for your studies or course. If we assume that the monthly tuition fee is only $ 500, then $ 2,000 is collected during the semester. And this is a considerable amount to be repaid, when at the same time you have to pay the same amount for new studies. Therefore, you must remember to submit a written resignation. Otherwise, such a person may be entered in the National Debt Register, and the debt collector will request payment – explains Jaross Kospen, President of the Management Board of the debt collection company 13Kids Financials.
Portrait of a student in debt
- people aged 26-35 have the most obligations
- the said age group has to be given a total of $ 8.9 million
- women have more educational debts – 67.7%
- the largest number of educational debtors live in the Pomeranian Voivodeship (1164), Mazovia (1052) and Lesser Poland (993)