Of the recent college graduating class, nearly 70% took out some form of student loans, and the average student debt upon graduation is $29,800. The total student debt equates to about $1.5 trillion spread out among 44 million borrowers. At least the unemployment rate is low.
Concern about debt will make it difficult for employees to participate in a 401(k) plan, so employers are starting to look at setting up a student loan repayment program. There are some innovative ideas being put forward that even allow some of the repayment to be treated the same as a 401(k) contribution.