VIDEO: Student Loan Debt is Growing

May 6, 2011 by · Comments Off 

By Sydney Giesey

Student loan debt continues to exceed credit card debt, after surpassing it for the first time last June. At the same time, the federal government has large budget deficits and is cutting state support of higher education to help balance the budget.

This year, Pell Grant Funding is being cut by eight billion dollars. In addition to the cuts in Pell Grants, the federal government will no longer fund the Academic Competitiveness Grant or the Smart Grant. In Texas, state equalization grants will be cut by 30 percent. With all these cuts, loans become a necessity for students. Leaving many in debt right out of college.