Student Debt approaches $1 trillion

The student loan 'financial disaster': By the numbers - The Week

The good news: More students are going to college. The bad news: More students are taking out loans to do so. Last June, for the first time ever, Americans' student loan debt outstripped their credit card debt. This year, total student loan debt is expected to cross the $1 trillion mark.

$24,000 Average amount owed by indebted college students who graduated last year. "Default rates are rising, especially among those who attended for-profit colleges," says Tamar Lewin in The New York Times. "In some circles, student debt is known as the anti-dowry."

9% Approximate percent of those enrolled in higher education institutions who attend for-profit colleges

6 % Percent that college costs have risen, every year, over the past decade. "Today's college student can expect to still be paying down loans when THEIR kids go to college,"

 

Let me guess, you want 'rich people' to pay for this too?

 

Thanks for adding your insight

 

Who gives a fuck?

Maybe, just maybe they should work their way thru, or save for it after working in the real world for a while... rather than putting it all on credit... Maybe they should earn the privilege of the GI Bill... maybe they should seek out entry level jobs at employers who have education benefits in their compensation packages....

 

And the Ds in congress wanted a piece of that action? And then in effect nationalized student loans calling that a cost reduction for approving Obamacare because they could do it cheaper than bankers who actually know how to collect money from deadbeats even if they are students?

 

Bankers were middle men tacking on 2% to Federal Student Loans

 

So? They earned their money, and they started out at the prime rate so that it wasn't really a 2% difference from the final rate the government gets. Why not leave it up to the individual to decide which place they wanted to get their loans? That choice was removed.

 

Just curious.....does it breakdown how many dipshits went to a private school of over 30-50k per year to become a teacher or social worker?

 

So?

Taking an additional 2% from students struggling financially only adds to debt and adds no value

 

RW, you are saying that the banks charge 2%, and as I understand it they charge prime plus 2%. What is the rate charged when directly issued by the government? I doubt they are seperated by two percent. And formerly students had a choice, and now they don't. If the government is less efficient in collecting, or if loans are forgiven if students choose certain fields or go into government employment after, the costs of future loans will necessary be higher. The government now has a monopoly on all student loans, and we all know what happens with monopolies. Costs will rise as there will be no competition to keep loan costs down.