Student loan debt has grown to over $1.5 trillion.
And that just accounts for loans held by Federal Student Aid. It doesn’t include private loans. Meanwhile, the Department of Education says 43% of those government-backed loans are considered “in distress.”
In a speech last month, Education Secretary Betsy DeVos put the current level of student debt in perspective.
“One-point-five trillion dollars is almost impossible to fathom. So, let me put it this way: $1.5 trillion is more than $10,000 of someone else’s student loan debt for each and every American taxpayer—145 million of them.”
Most people saddled with this debt aren’t paying it off. According to DeVos, fewer than a quarter of student loan borrowers are paying down their principal. Most are simply making interest payment — if they are paying anything at all. Nearly 20% of all loans are delinquent or in default. That’s seven times the rate of delinquency on credit card debt, according to DeVos. Nearly 43% of all loans are currently considered “in distress.”
For many borrowers, their debt is actually increasing over time. CNBC provides this anecdotal case.
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3 comments:
USA Debt over $22 Trillion
Credit Card debt over $1.6 Trillion
college debt over $1.5 Trillion
Trillion with a T...….when do we start paying? The can kicking down the road cannot last forever!
Scary sh*t if you think too much about it, but as long as I have my bourbon (or one having their vice of choice) enjoy while you can!
"We" aren't going to pay the debt.
It cannot be paid, and was never meant to be paid.
The debt has been created out of thin air - literally.
The Bankers simply enjoy the endless income of interest payments . . . and oh yea, the payments of principal. Think about creating the debt out of thin air, and then, getting "paid back" the principal - which has absolutely no counter party risk!
They are genius!
Can anyone else hear the snowball rolling down the hill?
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