There is about 1.2 trillion dollars worth of student loans outstanding with all but 15% of that owned or guaranteed by the government. The chart below shows the student loan amount held directly by the federal government. That balance is rising at about $110 bn per year, reports Sober Look.
When will the bubble burst?
ReplyDeleteWho cares...let them default. It was he fault of the lenders who gave unsecured loans.
ReplyDeleteWho cares? Unsecured? LOL Student loans are all backed by the fed. The taxpayer is on the hook for a bunch of irresponsible idiots who used their student loans to buy pizza and anime. I personally knew people who did that. They left school with $200k in loans (much more than what tuition, fees and books cost) and had been such slack offs that they had no job prospects upon graduation, and one I know is currently long-term unemployed. Sure the government can garnish their wages, but only if they bother to get employment. Instead they're on welfare with fees and interest accruing and they're screaming that their mistakes are everyone else's fault, the banks, the government, but not their own. Never mind that everyone had to sit through that meeting where the counselors explain that the debt has to be paid back. They took the loans, they owe the money. They need to buckle down, get serious and get a job to pay their freaking bills.
ReplyDeleteThere's no personal responsibility any more.
I do agree that these people are personally responsible for their debt. But we ask need to also take a look at the culture that we love in that pairs every kid towards a 4 year degree as the next automatic step after high school. Send a kid who doesn't know what they want to do for a living to college and ask you get is a degree and debt holding young adult who doesn't know what to do for a living.
ReplyDeleteThe crisis is in high gear for student loan debt. Lest we not forget about the personal loans out there to help fill the void of paying for schooling that the government can't cover. As the data shows, it is clearly more on the onus of the federal government--so maybe they can think of a way to make school less expensive and more effective at helping graduates get jobs and be more productive. No easy solution but something will have to be done, preferably before the bubble bursts and heads scratch.
ReplyDeleteThat's kind of funny you say who cares and its the lenders fault...We are the lenders! We are the ones who gave 18 year old's with no jobs or life experience $200,000 in loans.
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