Now our economy is facing the biggest student loan debt bubble in the history of the world, and when our new college graduates enter the “real world” they are finding out that the good jobs they were promised are very few and far between.
Then they discover they are tens of thousands of dollars in debt with loans that can not be discharged even by bankruptcy. This basically is been a sleazy hustle like subprime mortgages. Pump out the loans, which are backstopped by the federal government, securitize them, and everyone makes money. Little thought is given as to whether the college students can afford the loans. At least someone in foreclosure can wake away from the loan. Those with student loans can’t. Yes, of course students should be careful in taking the loans. But they are young and the loan waters are infested with sharks.