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The Student Debt Crisis...

Discussion in 'News and Weather' started by simple mind, Jul 4, 2014.

  1. simple mind

    simple mind DI Forum Patron

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    The Student Debt Crisis Is Being Manufactured To Justify Debt Forgiveness

    "A Google search for student loan crisis returns 12,100,000 items, most of them bemoaning the crushing debt of today’s students and demanding action to address the problem. The Huffington Post even has a special page collecting the dozens of articles it has published under the heading of “Student Loan Crisis.” There is a non-profit named Student Debt Crisis. Articles have even blamed the rising student debt load for a fall in housing demand among younger buyers. Yet, an unbiased look at the data suggests there is no student loan debt crisis.

    A recent Brookings Institution study by Beth Akers and Matthew Chingos carefully compared debt, education, and income levels from 1989 through 2010. They find that debt levels are rising more slowly than the income gain from a college degree, that debt payment burdens are actually falling thanks to lower interest rates, and that most of the really large debt amounts belong to those with graduate degrees who are most able to pay for such large of debt loads."

    The Student Debt Crisis Is Being Manufactured To Justify Debt Forgiveness - Forbes
     
  2. muddyfeet

    muddyfeet DI Member

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    With a debt of $1.2 trillion and it is not a drain on US economy????

    "Yet, an unbiased look at the data suggests there is no student loan debt crisis."

    By what criteria are you using to make this statement????

    This is from WIKIPEDIA.

    Distribution of student loan debt in the U.S.
    The Economist reported in June 2014 that U.S. student loan debt exceeded $1.2 trillion, with over 7 million debtors in default. Public universities increased their fees by a total of 27% over the five years ending in 2012, or 20% adjusted for inflation. Public university students paid an average of almost $8,400 annually for in-state tuition, with out-of-state students paying more than $19,000. For two decades ending in 2012, college costs rose 1.6% more than inflation each year. Government funding per student fell 27% between 2007 and 2012. Student enrollments rose from 15.2 million in 1999 to 20.4 million in 2011, but fell 2% in 2012.[5][6] Bloomberg reported in July 2014 that: "The biggest growth in the program came in the past decade, as student debt rose an average of 14 percent a year, to $966 billion in 2012 from $364 billion in 2004, according to New York Fed data."[7]

    There were around 37 million student loan borrowers with outstanding student loans in 2013. According to the Federal Reserve Bank of New York, outstanding student loan debt in the United States lies between $902 Billion and $1 Trillion with around $864 Billion in Federal student loan debt.[8] As of Quarter 1 in 2012, the average student loan balance for all age groups is $24,301.[8] About one-quarter of borrowers owe more than $28,000; 10% of borrowers owe more than $54,000; 3% owe more than $100,000; and less than 1%, or 167,000 people, owe more than $200,000.[8] Of the 37 million borrowers who have outstanding student loan balances, 14%, or about 5.4 million borrowers, have at least one past due student loan account.[8] It is also interesting to note that for every student loan borrower who defaults, at least two more borrowers become delinquent without default.[8] In 2010 for the first time ever, student loan debt exceeded credit card debt and in 2011 student debt surpassed auto loans.[9] According to Mark Kantrowitz, publisher of FinAid.org, student loan debt is growing by $3,000 per second.[9] Rising student loan debt is exacerbating wealth inequality.[10]
     
  3. OP
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    simple mind

    simple mind DI Forum Patron

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    Thanks for your contribution, that throws light from another angle, I am sure the situation is not any better locally...
     
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