The Latest: NEW STUDENT LOAN NUMBERS
Going to college or a university over the past 15 years have been more and more difficult; AND very very expensive. According to the Department of Education this amount continues to increase approaching $1.5 Trillion($1,000,000,000,000.00) There are 12 Zeroes.
A recent Bloomberg report that came out today states $1.45 Trillion last month which is double the amount at the end of the GREAT RECESSION of 2019 which was a $675 Billion. We better start saving those pennies; better yet dollars.
This study shows that students who have loans from 2011-2012 have a much more difficult time paying them off; compared to those who took out similar loans prior to 2012.
This is not just a YOUNG person game either; older americans(62+) have a heavy burden as well. According to this study; Americans over 62 over a total of $62.5 Billion in federal student loan debt; that does NOT include private loans.
Further into the numbers shows that 2.8 Million people with student loan debt are in the hole $100,00.00 PLUS and 700,000 of those people owe $200,000.00. Now you have to assume that those people will have an advanced degrees like PH.D, M.D. or J.D. Can you imagine a bill like that for just having a Four Year Bachelor's degree?
These amounts are insane and they can even affect you and I, who do not have any student loan debt. 90% of these loans are back by Uncle Sam. You and I. If too many people stop paying; guess who is helping out-You and I. Just like the mortgage crisis of 2008. If you remember that the Treasury saved banks that are “too big to fail”. This could happen again which would lead us into some type of economic free fall.
Our amazing(NOT) Secretary of Education Betsy DeVos had proposed major changes to a student loan forgiveness program started by by President Barack Obama. This program allowed loans to be forgiven if the degree/education and loan was from a “for profit” school and such institution was known to have false advertising such as Corinthian College or ITT Tech. Under DumbVos' proposed plan, scammed students would have had to prove that schools had intended to mislead them, and it would have be up to the HER office to decide which, and how many, students could receive loan forgiveness. Furthermore; her proposal would cut 13 Billion in debt relief to those student who would otherwise be eligible. This proposal was stopped by a smart Federal Judge who rules that the changes were “arbitrary and capricious”.
Here is my take on this matter. First I am a proponent of higher education and I was a willing participant of the push for college that was thrust upon us by our parents and our parents parents. I am glad for that. Higher education is useful; but it must be undertaken with fiscal responsibility. A four year degree(unless Ivy League) is not worth 100k. You can get it better if you shop around and you if you are willing to make compromises-just like anything in life.
Also the notion that, your parents will foot the bill, is G.O.N.E. Parents CAN'T afford to put kids through college. While the idea of such is great; but in reality it is not possible for most parents in this age. Sure helping them out is one thing; but footing the bill is just not going to happen.