How much student loan debt does the average Illinois grad have?

The average Illinois graduate leaves college with a whopping $29,305. Of Illinois graduates, 66 percent have debt.

These numbers are enormous, but as bad as they may seem, Illinois ranks middle of the pack nationally for student loan debt. The national average for student loan debt is $30,100, making Illinois a little better than average (19 out of 50 to be specific).

Student loans are growing fast. The federal balance sheet for student loans exploded from $101 billion in 2006 to over $1 trillion in the latest fiscal year.

The federal government sees these loans as an asset. Some argue it is a very profitable asset. Sen. Elizabeth Warren, citing the Government Accountability Office (GAO), claims student loans amount to a $66 billion profit for the government.

Could this profitable asset backfire?

Currently, 40 percent of borrowers are not making their student loan payments. If this trend continues, what will happen?

Students who have no job or low paying jobs may not be able to pay back the money they borrowed. If this happens, then the federal government will not get taxpayer money back. As a result, the government will have less money to pay other bills, leading to even higher federal debt.

Today the GAO released a report that says the US will forgive at least $108 billion in student loan debt in coming years. For now, it seems there is a lot of uncertainty surrounding the future of student loans.

Whatever happens, Illinois students should consider themselves lucky- at least they aren’t attending school in New Hampshire where the average student loan debt is $36,101.