Saturday, September 04, 2010

Drowning in Debt: US students helpless to pay off education

A ticking time bomb of American debt. Over $830 billion are owed by college students in the US with $3 thousand more added on every second. The most traditional financial baggage for Americans was credit card debt. For the first time however, debt belonging to college students has over taken that number one spot. Students graduating in 2008, 2009 and 2010 are facing the worst job markets in a generation at least (just how bad is the job market? See chart below video). And so you have people with more debt than we have ever seen before, who are having a harder time finding any job, let alone a job that pays them enough to somehow pay off all this debt."

Chart Courtesy Calculated Risk


T Z said...

If you don't have the money, don't go to college. Loading oneself up with a $120,000 debt for college is stupid. Now I don't mean to be heartless to the younger generation. But if they think they qualify to enter college, then they should understand capitalism, finance, and how to work in this reality. They must understand that college deliver education for profit. That the people who give you a college loan intend to make a profit in addition to getting their money back. A college education can be useful, but not worth a $120,000 debt compounded up for decades.

As to college loan being sticky, I say good. I say all loans must be sticky. So that one cannot get out. That the millions who got a big mortgage to buy a house never intended to fully pay up the house, and walk once they are under water, must be taught a deep lesson.

All debts must be repaid. Can't handle that, don't ever get into debt. America's insane culture of debt must be destroyed to save the country.

Anonymous said...

"America's insane culture of debt must be destroyed to save the country."

Well said TZ....My quote of the day ;)


Michael said...

Say you can't repay your college loan and you have no job. What can they do, send you to debtor's prison?

mgibs17 said...

Well, it’s amazing. The miracle has been done. Hat’s off. Well done, as we know that “hard work always pays off”, after a long struggle with sincere effort it’s done.
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