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Student Loan Debt Hell: 21 Things To Be Aware Of

April 28, 2011

From The Economic Collapse:


Is going to college a worthwhile investment? Is the education our young people are receiving at our colleges and universities really worth all the time, money, and effort that is required? Decades ago, a college education was quite inexpensive and it was almost an automatic ticket to the middle class. But today, all that has changed.

At this point, college education is a big business. There are currently more than 18 million students enrolled at the nearly 5,000 colleges and universities currently in operation throughout the United States. There are quite a few “institutions of higher learning” that now charge $40,000 or even $50,000 a year for tuition. That does not even count room and board and other living expenses.

Meanwhile, as you will see from the statistics posted below, the quality of education at our colleges and universities has deteriorated badly. When graduation finally arrives, many of our college students have actually learned very little, they find themselves unable to get good jobs and yet they end up trapped in student-loan-debt hell for essentially the rest of their lives.

Across America today…

Read more here.

Filed under economics economy college tuition college tuition higher education college degree student loan debt

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Pimco's Bill Gross: Going to college is now worthless

Tuesday, June 21, 2011

by Tyler Durden

A few weeks ago we pointed out what may be the most troubling (and Marxist) observation in America’s labor arena, namely that the labor’s share of national income has dropped to the lowest in history as a record number of Americans now focus on wealth creation through assets (i.e. owners of capital) instead of labor.

In his just-released, latest letter (below), Bill Gross piggybacks on this observation in what is one of the most scathing notes blasting the traditional of higher education, and in essence claiming that college, as means of perpetuating a broken employment status quo which redirect labor to a now-expiring Wall Street labor model, is now worthless:

"The past several decades have witnessed an erosion of our manufacturing base in exchange for a reliance on wealth creation via financial assets. Now, as that road approaches a dead-end cul-de-sac via interest rates that can go no lower, we are left untrained, underinvested and overindebted relative to our global competitors. The precipitating cause of our structural employment break is…

Read more here.

Filed under economics economy college tuition college tuition college costs college degree Bill Gross global economy Main Street Wall Street unemployment jobs

Notes

 
The student debt bomb
 


Average student debt can spiral up to $100,000 with interest and late payments. Room and board charges at colleges have doubled in actual dollars since 1982.
It’s no great secret that student loan debt is exploding. The total amount is set to top $1 trillion, more than total credit card debt. But accompanying that post-recession surge in student debt (as all other consumer debt is being paid down) is a surge in delinquencies. As The Wall Street Journal reports, “In the second quarter, 11.2% of student loans were more than 90 days past due and the rate was steadily rising, according to data from the Federal Reserve Bank of New York. Only credit cards had a higher rate of delinquency — 12.2% — but those numbers have been on a steady decline for the past four quarters.”
The rise in student borrowing is a longtime trend, but things have clearly gotten worse in the recession.

The government has cut Pell Grants, and of course students’ families are able to put less and less aside for college tuition, fees, and other expenses.
But clearly colleges and universities have played an important role.
Read more: 

The student debt bomb

The student debt bomb

Average student debt can spiral up to $100,000 with interest and late payments. Room and board charges at colleges have doubled in actual dollars since 1982.

It’s no great secret that student loan debt is exploding. The total amount is set to top $1 trillion, more than total credit card debt. But accompanying that post-recession surge in student debt (as all other consumer debt is being paid down) is a surge in delinquencies. As The Wall Street Journal reports, “In the second quarter, 11.2% of student loans were more than 90 days past due and the rate was steadily rising, according to data from the Federal Reserve Bank of New York. Only credit cards had a higher rate of delinquency — 12.2% — but those numbers have been on a steady decline for the past four quarters.”

The rise in student borrowing is a longtime trend, but things have clearly gotten worse in the recession.

The government has cut Pell Grants, and of course students’ families are able to put less and less aside for college tuition, fees, and other expenses.

But clearly colleges and universities have played an important role.

Read more: 

The student debt bomb

Filed under economy economics debt students student loans tuition tuition costs college costs