We've had the Wall Street meltdown and the mortgage meltdown, among other financial catastrophes. Could college student debt be the next big problem?
There is much evidence to say yes. Student debt is at a trillion dollars, and interest on student debt may increase drastically soon. Students are also taking out more private loans, which are more unforgiving than public loans.
What is the answer? I am all for good education and going to the best school that you want and you can get into. Maybe try somehow to tap into creative ways to get money, such as more diligent scholarship search, or using 529s. Parents may need to be better at saving and college planning too.
http://www.huffingtonpost.com/2012/03/22/student-loan-interest-rate_n_1372506.html?icid=maing-grid7%7Cmain5%7Cdl25%7Csec3_lnk2%26pLid%3D146080
1 comment:
I agree that student debt might be the next bubble. The fact that you can't discharge student debt in bankruptcy (or only in very exceptional circumstances) indicate that graduates all over the nation are carrying a huge burden that they can't unload in a bad economy and they cannot get jobs. I think President Obama is trying to think of innovative ways to deal with the student loan situation and we'll just have to sit tight until Congress does something about it!
In the meantime, perhaps a cash advance can help!
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