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Don't forget that the Federal government took over all student
loans in 2010. This affects not only the kids, but the Baby Boomer
parents who let the kids borrow money in the parents' name!

When neither can repay this debt, there will be yet another write-off
just like the mortgage-backed security crash of 2008.


[link to www.economicpopulist.org]

Ah, the American Dream. Go to college, work hard, graduate, get a good job, career and then you'll be set for life with
high earnings, enough money to buy a home, raise a family and retire comfortably.

Oops, rewind, this isn't the Ozzie and Harriet show, it's real life. Did you know student debt is one of the few
debts one cannot declare bankruptcy on, no matter what? That literally you have to be in a pine box, or close to it,
to have your debt forgiven? That 53.6% of those under the age of 25 with a four year college degree or better cannot
find a job?

Student loan debt is now the next great bubble, threatening the U.S. economy as the mortgage crisis did. The NACBA
released a study and calls student loan debt the next financial crisis, on the level of the mortgage crisis.

College seniors who graduated with student loans in 2010 owed an average of $25,250, up five percent from the
previous year. Borrowing has grown far more quickly for those in the 35-49 age group, with school debt burden
increasing by a staggering 47 percent.

Students are not alone in borrowing at record rates, so too are their parents. Loans to parents for the college
education of children have jumped 75 percent since the 2005-2006 academic year. Parents have an average of $34,000 in
student loans and that figure rises to about $50,000 over a standard 10-year loan repayment period. An estimated 17
percent of parents whose children graduated in 2010 took out loans, up from 5.6 percent in 1992-1993.

Of the Class of 2005 borrowers who began repayments the year they graduated, one analysis found 25 percent became
delinquent at some point and 15 percent defaulted. The Chronicle of Education puts the default rate on government
loans at 20 percent.

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