published Tuesday, April 3rd, 2012

Student loans, and other debt

A government study finds that student-loan debt has reached the frightening figure of $1 trillion!

That’s shocking. But is it “good” or “bad”? Does it mean more young people are getting a fine education? Does it mean more are getting deep in debt? The answer to both questions is yes.

A college degree can be a path to a good job and a more fulfilling life in many ways. But when young adults leave college with a massive debt load, it limits their ability to do things such as buy a house.

And what of students who borrow a good deal of money for college but then do not complete their degrees? They face the worst of both worlds: high student debt but little to show for it.

In addition, we Americans carry credit card debt that is nearly as great as the $1 trillion student loan debt figure.

And most troubling of all, our national debt is a staggering $15.5 trillion — and growing. Yet Congress and the president seem incapable of even beginning to reduce that debt.

How we handle our debt — both individually and nationally — has huge implications for our individual finances and for the future of our economy as a whole.

But there are painfully few indications that we are ready to confront the debt problem realistically. So, unfortunately, we will face serious consequences.

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nucanuck said...

The student loan program is structured to benefit banks first and foremost. Many of the loans should never have been made, but banks have no incentive to screen and limit loans because they have almost no downside risk.

The student loan program will end badly within the next few years.

April 3, 2012 at 1:14 a.m.
Mila78 said...

It's just awful how many debts we and our government have.Debts are everywhere.Getting an education is great, but what about getting a debt?The challenge is that without getting a debt it's almost impossible to get an education,sky-high prices make people apply for student loans.And lots of student can not save money to buy a house because they are paying off their loans.I am not an expert and do not know where's a solution for this problem,but something gotta change and than sooner than better.There should be a compromise between getting a degree and getting into the debt.

June 14, 2012 at 4:20 a.m.
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