Recovery threatened by student loan debt

Recovery threatened by runaway student loan debt | Comcast

WASHINGTON — The federal student loan program seemed like a great idea back in 1965: Borrow to go to college now, pay it back later when you have a job.

But many borrowers these days are close to flunking out, tripped up by painful real-life lessons in math and economics.Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis.

With a still-wobbly jobs market, these loans are increasingly hard to pay off. Unable to find work, many students have returned to school, further driving up their indebtedness.

Average student loan debt recently topped $25,000, up 25 percent in 10 years. And the mushrooming debt has direct implications for taxpayers, since 8 in 10 of these loans are government-issued or guaranteed.

As always the taxpayer is left holding the bag, this Country is in deep -do -do ,you were lied to...........

Just another reason showing how big government programs in America are always, always a bad idea.
In 1975 - the total cost of a 4 year degree was about 30% of the average annual household income. Enter GIANT government programs and grants - and whalah - the annual cost of a 4 year degree is 67% of the annual household income. More than double in comparison to income.

not sure but what I read says that as liberal bleeding hearts have made loans easier and easier that has made it easier and easier for colleges to raised tuition, room and board.

Once again the free market was best, while the liberal market appeared best to simple minded bleeding heart liberals.

Same as the mortgage market.
 
There is no recovery. Democrats have to start laying blame early for the lack of recovery so they could at least say there would have been a recovery if something else wasn't blamed.

So according to you adding 200,000jobs a month GDP growing at 2%, unemployment falling from 10 to 8% and GDP being above where it was at before the recession is not a recovery. You are a retard

No, you are a retard or delusional:

Just 16 States Have Gained Jobs Under Obama; 11 States Have Seen Workforce Shrink In Recovery - Investors.com

Recovery? Just 16 States Have Gained Jobs Under Obama

By JOHN MERLINE, INVESTOR'S BUSINESS DAILY Posted 05/18/2012 12:23 PM ET

Just 16 states have seen job growth since President Obama took office, according to state employment data released Friday by the Bureau of Labor Statistics.

The remaining states have lost a combined 1.4 million jobs since January 2009.

Even 34 months after the recession officially ended in June 2009, there are still 11 states that have fewer people working now than at the start of the recovery.

Meanwhile, 20 states have unemployment rates at or above 8%, including nine with unemployment at 9% or higher, according to the BLS.

At the other end of the spectrum, Texas has been the leader in job creation under Obama, with 240,000 more people working there than when he took office. Since the recovery started in June 2009, Texas has added 474,000 jobs, which accounts for one in four of all the jobs created during the recovery.

North Dakota takes the prize for fastest job growth rate, with employment climbing 13% since Obama took office, due largely to the oil boom there.

The biggest job loser under Obama is California, which as of April was down 285,000 job vs. January 2009, BLS data show.

The data underscore how the lackluster recovery has failed to come close to filling back the job losses from the recession, a poor performance that is sure to weigh on Obama's re-election prospects.

The latest IBD/TIPP poll, for example, finds just 35% give Obama a top grade for his handling of the economy, while 43% give him a D or F.

Obama has attempted to assuage such concerns by boasting about the "extraordinary progress that we've been able to make," including "4 million jobs created over the last two years."

But the nation's workforce is still 5 million smaller than it was at the previous employment peak, set way back in January 2008, BLS data show. At 51 months, it's already the longest jobs recession since the Great Depression, with no end in sight.

By this point in the recovery from the 1981-82 recession — which saw unemployment shoot up to 10.8% — the labor force was 6.8 million larger than at the pre-recession jobs peak.

Red Vs. Blue States

Looked at through the political prism, red states — those likely to vote for Mitt Romney this November — gained jobs, on average, under Obama. Blue states, in contrast, had an average job loss rate of almost 1%.

And since the recovery started, red states have had a job growth rate of nearly twice that of blue states.

Tossup states, meanwhile, have performed worse than either red or blue states. In fact, 9 of the 11 battleground states have fewer people employed now than when Obama was sworn in.

IBD also compared state job growth with business friendliness. States that rank highest on this measure — which typically focuses on tax rates, regulations, tort reform and the size of the state government — have experienced faster job growth rates than those ranking lowest.

IBD examined state business friendliness rankings from Forbes, CNBC, the George Mason University's Mercatus Center, the Tax Foundation and Chief Executive magazine.

States that ranked in the top 10 in two or more of those lists had nearly twice the job growth rate of those showing up in the bottom 10 in two or more rankings. Top-ranked states also had an unemployment rate almost a full percentage point below the least business friendly states.

"We can take lessons we learn from states and apply them nationally," said Jason Sorens, assistant professor of political science at the State University of New York, Buffalo, and co-author of the Mercatus 50-state ranking study. "If keeping taxes, spending and regulations low and reasonable promotes growth in states, we should expect that same relationship to hold nationally."
 
Want an instant BOOM to the economy?

Absolve all educational debtors.

That would take $1 trillion off the debit side of THE PEOPLE'S balance sheet.


What about the BANKSTERS to whom all this debt is owed?


Hell, folks! do what we always did for them when their DERIVATIVE loans blew up in their faces -- print up more money and give it to them!

What a stupid fucking post. You call them "banksters" as if it's a bad thing. Why are "banksters" bad? Oh, because they spent money they didn't have on poor investments, then Government bailed em out... So by all means do the same thing that made you not like "banksters" to students.

The second they make education “free” people in masses will go to college, never ending college students that never have to work and use most of their "student loans" that are would then be called "student welfare checks" to buy more crap and live in welfare dorms.


Then we can call students STDents... seeing as they live off the system and only make life chitty for everyone that has to deal with them. But fuck, everyone will be at least a part time STDent as a way to collect some amount off the "free" welfare.
 
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