Of course here is another issue that has been downplayed by the mainstream media for years but is finally starting to be taken seriously. We are talking about the giant bubble that is student loans. $830 Billion plus outstanding so far. Student loan debt has quickly surpassed credit card debt but does not really seem to get the attention it deserves in the news or by the government.
The main causes appear to be some American consumers paying down their smaller credit card debt before dealing with the large chunk that is student loan related. Many are also having difficulty paying due to the economic crisis. This situation is going to quickly get out of hand with more and more students entering the workforce and not enough high paying jobs available to pay down these loans.
What you may not know is that standard bankruptcy does not discharge federal student loans and regular debt consolidation processes usually cannot help either. There are some options available to discharge or lower the amount of the loan but 80-95% of borrowers will not qualify. For most, either payoff or death is the only way out. Very tough decision for those who have to choose between paying students loans or keeping a roof over their heads.
Higher education in this country has gotten absolutely ridiculous. To some, you are better off investing the amount you would have gone to school with or not even bothering going to school at all due to the amounts owed for many many years after graduation.
The entire student loan system appears to set you up for future financial failure and is a scam that has gone on way to long. The cost of education coupled with a lousy job market is really setting this nation up for failure and should be deemed a national security risk.
-Blogging4Bullion
Higher Education in USA is a racket now, people! I plan on taking my savings to South America where the money goes further. Study Spanish for a few semesters at a community college and go down there and check it out. The governments there are poor but they subsidize the schools enough to make them affordable for people with USD. The degree from there can be made good here through evaluation agencies!
ReplyDeleteThank you for the comment. I really believe this explains why graduates from over seas universities come here to work. They will make a decent profit and will not have to be concerned with paying back they type of SL's that Americans are subjected too.
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