ANSWER = NO
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The looming student loan bubble – Almost half of all student borrowers were not making payments. 1 out of 4 in debt repayment past due on student debt.
The aggressive growth in student debt is setting the country up for another debt fueled bubble. Higher education costs have expanded so quickly that Americans now carry $1 trillion of student debt. Most of this expansion has occurred in a time when the return-on-investment for a college degree has fallen. Over the last ten years student debt outstanding has grown from less than $300 billion in 2002 to $1 trillion in 2012. The cracks in the student loan bubble are already forming with large numbers of students defaulting on their loans. And the pipeline is only increasing. Almost half of all student borrowers are not making payments. Many are in school and many are simply unable to pay. Yet with a weak economy the prospect increases that many younger Americans are going to enter a market where job growth is weak yet student debt payments are high.
The massive growth of student loans and tuition
The issue is that college tuition even at public universities has far outpaced the growth of the overall CPI. College earnings for recent graduates, those who left school in the last decade, has been marginal since many younger Americans are carrying a big load of this recession:
Higher debts and lower wages. The risks do run high because many younger Americans are now going to college at far greater rates:
Before saying how great this is think of the millions enrolled in for-profit paper mills that are basically giving you a piece of paper for tens of thousands of dollars. The risks are getting large and larger. The debt explosion has far outpaced the growth rates of any industry including the insane housing market. Even in a decade where US households went debt crazy, student debt growth went on a separate and even more insane path.
Rest here…
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Thomas Paine was amongst the earliest proponents of universal, free public education. This is apparently still too radical of an idea in the USA, the financial sector and their plutocrats in DC have mandated debt servitude. Halting interests rate rises for one year is another example of politically doing almost nothing about an immense problem. Debts that cannot be repaid, won’t be. Any serious effort or discussion – which includes Bankruptcy reform, debt forgiveness, eliminating destructive credit ratings or actually lowering the cost of an education – is taboo and off limits. Students need to be in the streets demanding change, I’ll join ’em.
Student debt raging out of control has been happening for at least 25 years and there just now noticing?This is the business model that all lending institutes have:break the people and garnish there wages to keep our government going.All through the dream of higher education.A program set up for failure.