Student Loans: The Next $1 Trillion Bailout?

[Guest]

Here’s what we do know about student loan debt: it’s roughly $1 trillion in size, greater than either auto or credit-card debt and second only to mortgage debt in the U.S.

Borrowers in their 30s today owe $28,500, on average. The debt burden has soared just as — and partly because — the recession hit, so younger graduates carrying the highest balances are hit with the double whammy of a weak job market (that still isn’t showing any sign of rapid improvement).

And this all comes as globalization and technological change have upended once-reliable career paths, wiped out many mid-level professional jobs and leave low-paying fields in health, food and beverage services, and retail as among the fastest growing job markets over the next decade.

http://conservativebyte.com/2012/04/student-loans-the-next-1-trillion-bailout/

[bonnie]

RICHARD

thank you for posting this article--it was interesting

we will have to see if the Federal Government

thinks the students are that important to get a bail out

dgrimm60

Perfect time for some enterprising young person to go into the production of wagons.Before election Obama will need more

[Guest]

Wagons for all the manure? Maybe not. I think the mainstream media have beefed up their old wagons, so that they can haul more than ever before.

[Dr. Shane]

Well a student loan bailout would give something to the common man. Perhaps Obama can make it an election issue and win on that.

[phkrause]

I agree.

[Bravus]

A smart American friend's response when I asked about this issue:

Quote:

Interest rates on subsidized stafford loans, those made after july 1 are set to double if Congress doesn't act. This is effectively an increase on the taxes paid by the federal government on their own debt, since the interest on subsidized loans is paid by the government while the student is in school. After graduation the student rolls all the loans, subsidized and non, into a single loan with a set payment plan. The Feds are already subsidizing a large portion of this, since the loans are from the government anyway they have broad discretion on them as opposed to private loans such as mortgages. The Feds also will allow an income based repayment option, where monthly payments are capped at 10% of borrowers 'disposable' income. Now, with student loans becoming such a burden on the recovery, since people just starting off in life are saddled with debt before they start earning, the idea of just forgiving it all and allowing those people to keep the cash to buy thing with is being floated again. While the reps will howl about it there is economic sense involved, why insist on people paying the government back when the government will just need to turn around and give them [censored] like food stamps and welfare.

Puts a slightly different complexion on it when you realise that the 'student debt' is actually largely debt that the government owes to itself and pays interest on to itself...

[Guest]

Well a student loan bailout would give something to the common man. Perhaps Obama can make it an election issue and win on that.

Are you saying you want four more years of this?