Managing Your Money

Yowza! 1 in 5 homes has student debt. What to do?

The number of people taking on student loans keeps rising. Considering the economy, that fact alone shouldn't be surprising. But a new study released by the Pew Research Center finds that a staggering nearly 1 in 5 homes has student debt -- a number that won't be shrinking any time soon.

Continue Reading Below

The Associated Press reported from the data:

The analysis by the Pew Research Center found that 22.4 million households, or 19 percent, had college debt in 2010. That is double the share in 1989, and up from 15 percent in 2007, just prior to the recession — representing the biggest three-year increase in student debt in more than two decades.

The increase was driven by higher tuition costs as well as rising college enrollment during the economic downturn. The biggest jumps occurred in households at the two extremes of the income distribution. More well-off families are digging deeper into their pockets to pay for costly private colleges, while lower-income people in search of higher-wage jobs are enrolling in community colleges, public universities and other schools as a way to boost their resumes.

Read more from the Pew report. Here is an analysis from the AP.

So what can you do if you're one of the those households? Here is advice from Jennifer Lane, a certified financial planner with Compass Planning, who does regular reports from NECN.

Some of Lane's advice includes seeing you're eligible to make a different payment plan and learning how to get organized about your debt.

More from this blog on: Debt