A Federal Reserve report details the exploding amount of student loan debt and rising default rates, with 17% of borrowers now late on loans. The economy worsened so many decided to stay in school or go back to school. This only works if they can find jobs that pay enough for them to afford the loans, otherwise they just become debt slaves. Â Student loans are securitized and guaranteed by the federal government. This is just the same old banksters packaging slop together, just like they did with toxic mortgages. They have no skin in the game and the government backstops the loans. And everything goes fine until it doesn’t.
US student loan debt has soared to $966 billion, nearly tripling from 2004 to 2012, according to new data from the New York Federal Reserve.