Prepare For An Unprecedented Wave Of College Bankruptcies
From Sense On Cents
The student loan debt bubble is beginning to get a LOT of attention. As well it should.
That attention is deserved when a level of debt surpasses $1 TRILLION. The New York Times drew further attention to this situation this weekend in an extensive and very personal commentary, A Generation Hobbled by the Soaring Cost of College.
I have tried to draw focus to the MASSIVE size of this problem and its accompanying implications over the course of the last year in writing the following:
1. Are Student Loans an Impending Bubble? Is Higher Education a Scam?; April 26, 2011
4. Student Loan Debt Bomb’s Collateral Damage; February 28, 2012
5. The Prohibitive Cost of Higher Education: A Racket?; April 10, 2012
I provide these links only because they address a number of issues connected to this problem and it will hopefully serve as an easy resource for students and families involved in or facing student loan questions. What are some of the issues?
The very integrity of our college and university system. The costs of higher education in general. The impact this student debt bomb has on the development of new families, new housing starts, and our entire economy. The fact that there are young female students literally engaging in prostitution in an attempt to make their loan payments. I hope any young woman will seek other avenues to address their loan payments than resorting to prostitution.
Who else shares my concerns on the problems embedded in the student loan market?
Mark Cuban, who lays out in spades the ultimate impending doom and consequences of this problem. I fully concur with Mr. Cuban’s assessment which he comprehensively outlines in writing, The Coming Meltdown in College Education and Why The Economy Won’t Get Better Anytime Soon (credit to eWallstreeter):
Its far too easy to borrow money for college. Did you know that there is more outstanding debt for student loans than there is for Auto Loans or Credit Card loans ? Thats right. The 37mm holders of student loans have more debt than the 175mm or so credit card owners in this country and more than the all of the debt on cars in this country. While the average student loan debt is about 23k. The median is close to $12,500. And growing. Past 1 TRILLION DOLLARS.