Pam Martens is worried about student loan debt. At $1.2 trillion is is larger than credit card debt. Worse, it threatens the financial recovery, weak as it is. The Financial Stability Oversight Council (F-SOC), a unit of the U.S.
Treasury, has warned that high levels of student
debt that it could “impact demand for housing, as young borrowers may be less
able to access mortgage credit. Student debt levels may also lead to
dampened consumption.” The Consumer Financial Protection Bureau (CFPB) has expressed concerns about consumption - because the debt issue negatively affects household formations, which are an important factor in economic growth - and entrepreneurship - because heavy debt burdens will disqualify many from small business loans. And the impact also affects student's parents and grandparents, who have co-signed loans.
Martens also feels that there has been some chicanery by the banks in granting these loans.
1 comment:
On ProjectTuitionReimbursement I have ask for your top 10 reasons for the 1.2Trillion Student Loan Debt that is growing faster today than ever before. I ask this question, because I felt after 4 years of research when My employer ask me if there was one cause/reason to the student loan debt. I told him I know that there are at least 10 if not more reason for the student loan debt bubble that is getting ready to bust if something is not done quickly. I should have been able just to name each but I was caught off guard. This to those of us that want to solve this crisis. We should have a list and the reason each are on the list. I have only one agenda! That every child should have an affordable education and the opportunity to live the ..............American Dream.
Nearly every man who develops an idea works it up to the point where it looks impossible, and then he gets discouraged, That's not the place to become discourage
Thomas Edison
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