U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
financeography.com
U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
1–10 of 457 posts
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#2I am sure more education can fix this problem as well. Just a few more degrees and we'll be able to afford interest on that debt, that the government will be paying because the students are broke.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#3Queue the political debate over whether this is a failure to provide secondary education to our citizens, or an artificial inflation in its cost by attempting to do so.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#4Anyone have any idea what the 20 to 50 year implications are for this? I imagine this will crush the economy eventually if millennials cannot pay it off.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#5The Wall Street bailout was only...what, a trillion?
If we bailed out real estate speculators, I wouldn't be surprised if something happened with college grads.
Unfortunately. I hate assuming responsibly for monetary decisions other than mine, but judging the trend, that's where we're headed.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#6Every time I read articles about student loans in the USA, the options are always presented as either the current state, or free tuition.
Why are interest free student loans never floated as an option? Here in New Zealand, our student loans are provided by the government and are interest free as long as we reside in New Zealand.
It means that people who don't do tertiary education, or who do a trade, don't subsidise those who go to university. It also means that there's a disincentive to go to university if you don't need to, which I think is a good thing, however everyone is able to go to university if they want to/need to, without worrying about how it's being paid for.
Our student loans are also paid off proportional to our income, I think at a rate of around 8% (and no repayments required if you earn less than $19k per year). This means that you only pay what you can, it's essentially another tax, rather than in the USA where you get people struggling to make payments on their student loan.
Obviously, we also have the advantage of cheaper tuition, although it is rising. It costs around NZ$7,000 (~US$5,000) per year to go to university, it's not cheap, but it's not cripplingly expensive.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#7Anyone have any idea what the 20 to 50 year implications are for this? I imagine this will crush the economy eventually if millennials cannot pay it off.
Education can switch to a system that won't require any loans.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#8Anyone have any idea what the 20 to 50 year implications are for this? I imagine this will crush the economy eventually if millennials cannot pay it off.
Regardless of how much debt there is, this isn't a bubble. These loans are nearly impossible to discharge. Recent graduates will be on the hook for this debt whether they want to be or not.
The largest negative effect of all this debt will be the drag it puts on consumption. Young people are already delaying major purchases like cars and houses due to all their student debt.
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#9Queue the political debate over whether this is a failure to provide secondary education to our citizens, or an artificial inflation in its cost by attempting to do so.
Other countries don't have this problem. There is no debate to be had - the US can't control costs
Re: U.S. Citizens Now Hold About $1.3 Trillion in Student Loan Debt
#10Anyone have any idea what the 20 to 50 year implications are for this? I imagine this will crush the economy eventually if millennials cannot pay it off.
Regardless of how much debt there is, this isn't a bubble. These loans are nearly impossible to discharge. Recent graduates will be on the hook for this debt whether they want to be or not. The largest negative effect of all this debt will be the drag it puts on consumption. Young people are already delaying major purchases like cars and houses due to all their student debt.
> Regardless of how much debt there is, this isn't a bubble.
Unless people start to die before paying off their loans.