American Elephants

Student-Loan Debt Tops $1 Trillion: Guaranteed by You. by The Elephant's Child
March 26, 2012, 6:55 am
Filed under: Democrat Corruption, Domestic Policy, Economy, Education, Election 2012

The amount American’s owe on student loans is far higher than earlier estimates indicated. It could be a real burden on some consumers leading them to postpone buying homes and  slowing the housing recovery officials said last Wednesday.

Total student loan debt seems to have surpassed $1 trillion late last year, said officials at the Consumer Financial Protection Bureau, a new agency created by the Obama administration. That’s 16% higher than earlier estimates. And it’s growing at $40 to $50 billion each month.  Now it seems that as many as 27% of all student loan borrowers are more than 30 days past due.  That means that at least $270 billion in student loans are no longer current.

This is happening at a time when interest rates are at record lows.  As Tyler Durden says, “This is a loud wake-up call that it is not rates that determine affordability and sustainability— but general economic conditions — which may make the popping of the student loan bubble inevitable.”  If the climb in interest rates continues, then the bubble will pop that much faster and bring down another $1 trillion in unintended consequences down on the shoulders of the U.S. taxpayer, who once again will be footing the bill.

The Bureau  of Labor Statistics estimates the current unemployment rate for 18–24 year–olds at nearly 14% and for those 25– 34 years old, 8.7%. No, it’s way worse than that. The employment rate is barely above half at 54%—the lowest in 64 years, and 7% worse than when Obama took office promising change
(click to enlarge)

This technically means that 46% are unemployed, but this is the age group where wages have dropped the most. So they’re not only in very big debt, they’re poor as well. And Obama has been urging those who are unemployed to go back to school, get retrained for a new green job.  Oh wait!

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