5 July 2012 0 Comments

Student Loan Bubble Part 2: Going In Wrong Direction

Going in the Wrong Direction. The more the government (productive taxpayers) subsidize billionaire, big business, education corporations, both for profit and non profit, the higher tuition and salaries go, and more buildings are built however we fail to see any improvement in student learning or performance.

WSJ May 31, 2012   Americans are borrowing more to pay for college  as a weak job market prompts more people to go to school and pay these climbing tuition rates.  (shown by Federal Reserve Bank of New York data.)

Americans owed $904 billion in student loans at the end of March, nearly 8% more than a year ago.  This came out on thursday when the New York Fed issued it’s quarterly report on consumer credit. This figure compares with the $679 billion that was owed on credit cards at the end of the first quarter.

Between the fourth quarter of 200 (when credit-card debt peaked) and the first quarter of 2012, this type of borrowing fell by $187 billion, or 21.6%, said the Fed.  Over the same period, student-loan debt rose by 41.4%, or $264 billion.

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