The student loan bubble is at $1 trillion and growing by $40-50 billion a month. Loans are backstopped by the government. Colleges and lenders have no incentive to insure that the loans can be repaid and this increasingly toxic slop of student loans is immediately securitized. Everyone makes a bundle, no one bears any responsibility.
The student loan bubble is like the real estate bubble. And we all know how the real estate bubble turned out.
The early warning signs are already there for student debt. 27% of loans are more than 30 days past due.
Market-Ticker.org has the solution. 1) No more government-backed student loans, 2)Allow loans to be discharged by bankruptcy. This would force lenders to evaluate the risk of the loan.
It is time to stop financially raping our young adults and if we don’t, we will all deserve what they do to us in just a few short years’ time.