As the latest American student loan debt estimates hold firm at $870 billion, it has far overshadowed other common types of debt, and debt collection
for defaulters on student loans is now a larger operation than collecting on credit card or auto debts.
The Federal Reserve Bank of New York recently released an article that noted the balance of American student loan debt overshadows auto and credit card debt, which stand at $730 billion and $693 billion, respectively. The USNews reports that in 2010, the average student graduated with a debt of $25,250, which was a nearly 29 percent increase from the 2006 figures, according to the Project on Student Debt. The source noted that student debt is a hard hole to get out of, because the Labor Department found that the salaries of college graduates only rose by 10 percent between 2006 and 2010. The FRBNY predicted the occurrence of staggeringly high student loan debt will only increase, as college enrollment is becoming more frequent, and tuition costs are getting higher. The Fiscal Times reported that the price of public universities averaged out to be around $20,000 a year and private schools were around $42,000 a year, but could hit $60,000 for more prestigious schools.