« Resources: Open Access Videos, Alliance for Taxpayer Access | Main | UberStudent: Open Source Learning Platform Combines Linux OS, Moodle and Numerous Research and Productivity Apps »

10/15/2010

Student Loans: A Bubble Waiting to Pop?

From 10 Monster Bubbles Currently In The Making:

Student loan debt now exceeds revolving credit facilities as Consumer Enemy Number One...The massive loan market and the quiet web of underwriters and collection agencies doing their best to reel in cash-strapped young adults now boasts an average default rate of 17.9% (for-profit institution attendees) and an average of 40% for 2-year college graduates who received their diploma in 1995.

How did this happen? A federal and private student lending system with almost no consumer protection for students (student loans cannot disappear with a bankruptcy filing or even with a death certificate) and limitless leeway for debt collectors to slap fees on those who default on their monthly payments. All of this lays the ground for predatory lending from loan originators whose rewards are divorced from the risks of potential defaults.

Oh...it costs more than FOUR TIMES as much to get a degree today than it did in the early 1980's while median income has only increased approximately 150% since then.

Related Links:
Here's The Awful Reality Of America's Student Loan Nightmare
Student-Loan Debt Surpasses Credit Cards
Government Vastly Undercounts Defaults
When Student Loans Live On After Death

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341bf66b53ef0133f518be92970b

Listed below are links to weblogs that reference Student Loans: A Bubble Waiting to Pop?:

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

The comments to this entry are closed.