Archive for April 3rd, 2019

Student debt continues to skyrocket …

April 3, 2019

One of the byproducts of the recent college admissions scandal has been an elevated look at college attainment (i.e. what are students really learning) … and ballooning student debt.

Last week we looked at what students are really learning.

Now lets shift the spotlight to student debt.

First, some sobering statistics

Student debt has more than tripled since 2004, and is now over $1.5 trillion — second only to mortgage debt — and higher than both credit cards and auto loans.

That’s a problem because (1) The student loans fuel tuition increases by enabling colleges to fund inefficiencies (2) Servicing the debt load constrains borrowers lifestyle choices (e.g. marriage, home buying) by crowding out other debt capacity, and (3) When interest rates rise (and, they eventually will) repayment will pose an increasingly difficult challenge for many (most?) borrowers.

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Let’s drill down on that $1.5 trillion…

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