The Wall Street Journal reports today that the economic recovery in the U.S. is being slowed by the volume of student loan debt. 2012 ndergraduate students who borrowed and graduated owed on aaverage about $30,000.00 an increase of 25% from 2008, and borrowers now owe over one trillion in student loans.
The Federal Reserve Bank of New York indicates that defaults are on the rise and delinquent loans now represent 12% of all student debt was delinquent in the 3rd quarter.
This is going to get worse before it gets better. Last week WSJ reported that over one million folks are coming off of the unemployment rolls because their benefits are exhausted. Don’t be fooled by the improvement of the employment rate due to these folks falling off the charts.
Believe me that these folks did not all of a sudden find a 100k job! I think we got to button down and start looking hard at overall debt and our students need to start thinking about working while they are in school.