The program to help student and their parents pay for education has ballooned into a YUGE financial drain to Americans from their 20’s to their 60’s…
The whole program is a mess….
Some student’s graduate to have their pay eaten up by loan repayments….
Some parents go into retirement with fixed incomes that force them to default on payments….
Loan companies give people put off’s and hike the amount owned (interest fee’s) to heights that will NEVER be repaid while thy collect fee’s presumably from the government….
Loans that supposed to be forgiven have fine print that allow loan administrators to deny the forgiveness to 99% of those who thought they would qualify….
And Congress has exempted the loans from bankruptcy …..
U.S. student loan debt outstanding reached a record $1.465 trillion last month and one particular set of borrowers is having a hard time paying back their loans, according to a Bloomberg analysis of student loan securitization data. This debt is raising fiscal risks.
“Over 90% of student loans are guaranteed by the U.S. Department of Education, meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget,” said Paul Della Guardia, economist at the Institute of International Finance in emailed comments.
The record student debt level is more than double the $675 billion outstanding in June 2009 when the recession ended.
For one group of young adults that took out loans in 2012, student loan debt is a particularly stark reminder of college. Loans disbursed in 2012 have defaulted at a faster rate than any other loan cohort since the financial crisis…..