#1 Student-Loan Debt Tops $1 Trillion03-22-2012, 11:26 PM
By JOSH MITCHELL and MAYA JACKSON-RANDALL
The amount Americans owe on student loans is far higher than earlier estimates and could lead some consumers to postpone buying homes, potentially slowing the housing recovery, U.S. officials said Wednesday.
Total student debt outstanding appears to have surpassed $1 trillion late last year, said officials at the Consumer Financial Protection Bureau, a federal agency created in the wake of the financial crisis. That would be roughly 16% higher than an estimate earlier this year by the Federal Reserve Bank of New York.
The new figure—released Wednesday at a banking conference in Austin, Texas—is a preliminary finding from a study of student debt that the bureau plans to release this summer. Bureau officials said the estimate is based on a survey of private lenders, as opposed to other estimates that rely on a sampling of consumer credit reports.
CFPB officials say student debt is rising for several reasons, including a surge in Americans going to college in recent years to escape the weak labor market. Also, tuition increases—which many colleges say are needed to offset big cuts in state funding—have many students taking out bigger loans.
In addition, the interest costs on older loans are climbing as borrowers fall behind on payments, reflecting mounting financial strains, bureau officials said. New York Fed data show that as many as one in four student borrowers who have begun repaying their education debts are behind on payments. Read More>http://online.wsj.com/article/SB1000...googlenews_wsjThe difference between pigs and people is that when they tell you you're cured it isn't a good thing.
03-22-2012, 11:37 PM
Amt of student loan debt is basically meaningless unless compared to default rate and is that default ratio is also increasing.The 21st century. The age of Smart phones and Stupid people.
It is said that branches draw their life from the vine. Each is separate yet all are one as they share one life giving stem . The Bible tells us we are called to a similar union in life, our lives with the life of God. We are incorporated into him; made sharers in his life. Apart from this union we can do nothing.
03-22-2012, 11:52 PM
03-23-2012, 12:38 PMStudent-Loan Debt Tops $1 TrillionEducation without values, as useful as it is, seems rather to make man a more clever devil.
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C. S. Lewis
Do not ever say that the desire to "do good" by force is a good motive. Neither power-lust nor stupidity are good motives. (Are you listening Barry)?:mad:
03-23-2012, 12:49 PM
So let me get this straight, they took out loans they had not ability to pay off and now are getting bit in the ass? So I guess the American tax payer has to bail their freeloading ass out.
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