More Doomsday

If death from nuclear war or a massive decline in bug population wasn’t enough to make you jittery, perhaps this little article will.  One in ten people is more than 90 days in default on their student loans.  Student loan debt has grown by 157% in just over a decade.   What does that mean?  Over $1.5 trillion dollars in existing student loan debt.  Interest rates on student loans have topped 5% for undergraduate loans and are nearly 7% for advanced degrees.

Yet one cited expert in the article posits the student loan debt rise isn’t nearly a crisis on the scale of the housing collapse a decade ago.  He claims the difference is that student loan debt isn’t systemic.  I’m not sure what he means by that, considering earlier in the article another expert described the situation as systemic.  Elsewhere the article reported a further increase in the number of people living at home with their parents still by age 35.  Generations of people are unable to do the things their parents did by their late 20’s and 30’s because they’re saddled with massive student loan debt and, surprise surprise, aren’t able to find jobs that enable them to continue paying it off.

Meanwhile, tuition rates are basically at all-time highs and continue  to climb.  Why not?  If people are being groomed to see college education as an absolute necessity for future financial security, of course people are going to keep taking out loans to pursue that education.

Those most likely to default on their loans?  People who attended for-profit schools, minorities, and those who started on their education but didn’t finish.  Also, as a whole it’s the smaller loans that are defaulted on, rather than the big, six-figure loans.  Those who spend a lot of money to get advanced schooling for careers in law and medicine tend to be better able to repay their loans.

Meanwhile, the government just keeps handing out loans.  After all, it’s not  the government’s money.  It’s yours.  And mine.

I don’t know how any financially sensible person could see this situation as anything but a massive bubble waiting to burst, and burst it eventually will.  At which point I’m sure the effects will be very systemic.  And pervasive.  Destruction by nukes, bugs, or financial meltdown.  At least we have options to place our bets on.

 

One Response to “More Doomsday”

  1. You Don’t Say? | Living Apologetics Says:

    […] could prove to be the undoing of the world or large portions of it, whether by a lack of bugs or education-related financial collapse.   Neither of which was on the horizon as I was growing up under the shadow of imminent nuclear […]

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