From Profit Confidential January 10, 2013 - 11:56am
Another crisis looming in the air…
Student debt is going to be the next big hurdle to deal with in the U.S.’s economic recovery. Total student loan debt currently stands very close to $1.0 trillion and defaults on these loans are increasing at an alarming rate, placing more pressure on economic growth.
In the third quarter of 2012, student loans delinquent over 90 days stood at an alarming 11%. (Source: Federal Reserve Bank of New York, November 2012.)
I expect this delinquency rate and default rate to rise. It’s not rocket science: there is no economic recovery or real economic growth. Americans are still suffering. The more they suffer, the more they fall back on their loan payments. Thus, how can students get a break?
Here is what the U.S. secretary of Education Arne Duncan said about the looming student debt crisis: “We continue to be concerned about the default rates and...
This is the largest topic on ewallstreeter. This topic aggregates news and investment advice from over 200 different news sources. It covers all the financial markets, collectively known as Wall Street, as well as international news which affects our markets.