Student loan defaults on the rise

CINCINNATI, OH (FOX19) - As the cost of college tuition continues to rise so does the amount of debt carried by student.

A recent report by the Federal Reserve Bank of New York shows that outstanding student loans now total more than one trillion dollars, but there are ways to keep those debts from becoming overwhelming.

Jade Durham with Trinity Financial says "its easy to get into debt, but college people aren't taught the basics of money management and basics on budgeting."

Durham suggests keeping debt under control by budgeting and not borrowing more money than you need.

The average college student graduates with about $25,000 in debt.  Nationally the number of student loans that haven't been repaid has risen to nearly nine percent. Arizona has the highest default rate at 15.96-percent while North Dakota has the lowest rate at 3.39-percent.  Indiana is at 11.61-percent, Kentucky 10.25-percent and Ohio ranks below average at 8.01-percent.

Since college loan debts don't go away even in bankruptcy credit counselors advise people to get help if those debts become overwhelming. There are a number of options available to keep payments manageable.

Copyright 2011 FOX19. All Rights Reserved.