The most educated and indebted generation ever – Average student debt has tripled since 1990 while earnings have gone stagnant for college graduates. How much is the college rite of passage worth?
Most have very fond memories of their college going years. Going off to college is one of the few rites of passage that we have in the United States ushering future generations into official adulthood. Yet the cost to attend this passage has gotten astronomically expensive. College has now turned into a very large business […]
Is College Worth the Price and Debt? Private student loans make up $150 billion of the $1 trillion in outstanding student debt. Private student loans grow hand and hand with for-profit institution growth.
Few will ever argue that getting an education is a worthy goal. College is seen as the gateway to a better life and mobility into the middle class. The middle class has been shrinking while the cost of attending college has skyrocketed. The cost to attend college has far outstripped any sensible economic measure and […]
The sound of rumbling from the student debt bubble – Jump in consumer credit last month came mostly from student debt growth. For two decades student debt expanded at a rate above 17 percent per year.
The flashing alert signs permeating from the higher education bubble should give people pause to the next flavor of the day bubble. This month information was released regarding consumer credit growth. Most of the headlines took this as positive economic news but digging deeper into the data we realize that the bulk of the growth […]
Deleveraging from one bubble to another – $6.2 trillion in mortgage debt was added between 2000 and 2008. Since the peak in 2008 $1.3 trillion in US household debt is gone but another bubble is brewing hidden under the rubble of the busted housing market.
There is some interesting data on the deleveraging that is occurring with the American household. Since the peak in Q3 of 2008, US households have lowered their outstanding debt by $1.3 trillion. It is important to understand how this deleveraging is occurring. First of all, Americans are largely paying down existing debts much faster and […]