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FarCenter

(19,429 posts) Thu Feb 28, 2013, 06:40 PM Feb 2013

How Student Debt Tripled In 8 Years, And Why It's Becoming A Growing Economic Problem

The Fed offers five reasons to explain this trend:

- More people attend college and graduate school
- Parents take out student loans for their children
- Students stay longer in college and more often attend graduate school
- Lower repayment rates as borrowers delay payments through deferments and forbearances
- Discharging student debt is very difficult and the balance stays with the borrower

Meanwhile, 17 percent of borrowers are now late on their debt payments. This is up from 10 percent in 2004.

What follows is the Fed's presentation showing the incredible rise of student debt and how it is quickly becoming a big problem.

Read more: http://www.businessinsider.com/ny-fed-student-loans-presentation-2013-2?op=1

4 replies

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Highlight:

How Student Debt Tripled In 8 Years, And Why It's Becoming A Growing Economic Problem (Original Post) FarCenter Feb 2013 OP

Another reason for increased debt: States slashing education spending. denverbill Feb 2013 #1

The U.S, guarantees the loans and eats the losses, while the big banks skim the profits. vt_native Feb 2013 #2

Guarantees the loans, so Riftaxe Feb 2013 #4

Another reason: graduates can't find jobs LiberalEsto Feb 2013 #3

denverbill

(11,489 posts)

1. Another reason for increased debt: States slashing education spending.

Reply to FarCenter (Original post)

Thu Feb 28, 2013, 06:48 PM

Feb 2013

Colorado used to subsidize state universities and tuition was pretty reasonable. Thanks to Republicker tax cuts and the recession, tuition rates have exploded.