The Great Student Loan Debt Default: Over $270 Billion in Loans Are 30 Days Or More Past Due
March 26th, 2012
Like the housing bubble, which was predicated on easy money and rising prices, student loan lending has increased to unprecedented levels over the last decade.
There is some $1 Trillion in outstanding student loan debt in the United States, the majority of it borrowed by individuals who were sold the idea that they could go to college, party with their buddies at fraternity and sorority houses for four years, get a piece of paper that says they’ve received higher education, and then land a job paying $100,000 a year right out of school.
Somewhere along the way, however, things changed. When these highly educated young adults finally received their degrees, it turned out that all of those hundred thousand dollar jobs they were promised were either exported to countries where laborers are paid a fraction of the cost to do the same work, or they simply evaporated as demand for goods and services in America and around the world collapsed.
With no jobs, no way to pay for their own livings expenses, and a mountain of debt an alarming 85% of 2011 college graduates were forced to move back in with mom and dad after they got out of school.