The Coming Student Loan Apocalypse
The Huffington Post reported today (Aug.20, 2014) that borrowers with student debt are beginning to buckle under the load. More than have of the Direct Loans, the most popular form of loan, are in arrears. The number of loans in repayment plans of ten years or more is nearly half and the number of all loans in distress is rising.
According to Education Department Data, the average recipient of student loans paid 28% more in 2013 than in 2007, after adjusting for inflation. At the same time the average four year college graduate earned 0.08% LESS! And let’s not even talk about the poor guy/gal who isn’t employed after college at all and those who ran up debts and never got a degree. They just make things worse!
The article, written by Shahien Nasiripour is also supported by a number of graphs and data. The bottom line? We, as taxpayers have guaranteed most of these loans……and they are at risk. And getting riskier every day as the cost of college rises and the jobs at the end of the ride continue to be scarce.
Our kids clearly need education to compete. But what education? And, at what cost? What options do they really have? College, much like credit cards, home ownership and that brand new car in the driveway have been crammed down our throats forever as tokens of the “American Dream”. Uh….really? I am an American. Those things weren’t my dreams. If I had any….they certainly weren’t a mountain of debt!
Read the article…it’s a good one.