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Student Loan Debt Skyrocketing

New data shows the average amount of debt students carry around after they graduate college could be around the size of a down payment of a house.
(CNN) New data shows the average amount of debt students carry around after they graduate college could be around the size of a down payment of a house.

The average debt for the class of 2012 is $29,400. And that's a ten percent jump from the year before.

That's according to a new report by the Institute for College Access and Success and on top of that; some 70 percent of college seniors left school with debt so this is a pretty significant challenge across the country.

But some regions seem to be a little worse off than others. The report says students in the east and midwest, students tend to borrow much more than in the west and south.

A little bit of relief may be in store though. Just this week the Consumer Financial Protection Bureau said that it will begin to oversee non-bank student loan servicers for the very first time. 40 million americans use those kinds of providers to manage their loans.

Some of the concerns the bureau has found with loans -- well, one issue is that it tends to be confusing for students who want to pay down their debt early in order to avoid some of the interest, also when a loan is spread out over several servicers, it means that late fees can run up on that debt payment, and transferring loans can incur penalties too. So the bureau says it's trying to solve some of the headaches involved.

This may be obvious, but debt associated with public, non-profit schools is much lower than for private schools. So it's a good idea to shop around.
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