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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStudent Debt Tripled in Eight Years
Salon / By Natasha Lennard
Student Debt Tripled in Eight Years
A new report from the New York Fed shows the explosion of total student loan debt, which shows no sign of stopping
March 2, 2013 |
A new report from the New York Federal Reserve further confirms what many commentators have been long saying student debt is the bubble that just keeps expanding. Total student debt has nearly tripled in the past three years.
Total student debt stands at $966 billion as of the end of 2012, with a 70 percent increase in both the number of borrowers and the average balance per person. The overall number of borrowers past due on their student loan payments has also grown, from under 10 percent in 2004 to 17 percent in 2012.
Noting the N.Y. Fed report, HuffPo pointed out that the proliferation of indebted students and their families has knock on effects on other areas of the economy:
Fewer people with student loans are buying homes, according to data in the report. Of borrowers ages 25 to 30 who are taking out new mortgages, the percentage of those with student debt has fallen by half, from nearly 9 percent in 2005 to just above 4 percent in 2012.
The fed report sees a connection, stating, The higher burden of student loans and higher delinquencies may affect borrowers access to other types of credit and the performance of other debt.
Crucially, however, the student debt bubble cant be construed in the same way, say, as the housing bubble. Student debt will (and already does) have crippling effects on millions of Americans, but its a bubble with no promise of burst. As Malcolm Harris has long pointed out, since most student loan debt is government backed and can never be discharged, the type of meltdown the student loan explosion could precipitate will take a different shape than the mortgage crisis, with the victims (student borrowers) already in place and struggling: ................(more)
The complete piece is at: http://www.alternet.org/news-amp-politics/student-debt-tripled-eight-years
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Student Debt Tripled in Eight Years (Original Post)
marmar
Mar 2013
OP
Sort of hard to repay that student loan debt when there's not enough jobs out there n/t
OhioChick
Mar 2013
#1
I'm sure it is only a conicidence that in this same period, for-profit vulture schools
BlueStreak
Mar 2013
#3
OhioChick
(23,218 posts)1. Sort of hard to repay that student loan debt when there's not enough jobs out there n/t
blkmusclmachine
(16,149 posts)2. GOP solution: Close the schools!
BlueStreak
(8,377 posts)3. I'm sure it is only a conicidence that in this same period, for-profit vulture schools
have been sprouting like weeds.
The "education" they produce is completely worthless. Their whole business model is to get people to take out student loans. They have absolutely no interest in actually improving anybody's lives -- except for the owners of the schools themselves, of course.
Fire Walk With Me
(38,893 posts)4. K&R!