in education, politics, Uncategorized

Americans Now Owe More on Student Loans Than Credit Cards

USA Today has a sobering report on student loan debt in the U.S.:

The amount of student loans taken out last year crossed the $100 billion mark for the first time and total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York.

Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports. Total outstanding debt has doubled in the past five years — a sharp contrast to consumers reducing what’s owed on home loans and credit cards.

Alex Pareene has some further perspective on it. In short: our generation is doomed.

  • I am currently investigating this huge disaster for a personal project and I am totally shocked how abysmal the system works atm. There is a huge collusion between for-profit education, the financial industry and those who like the current system because it tames campus life.

    Especially the fact that most of these debts are "uber"debt (cannot be voided by bankruptcy, have to be paid from anything with absolutely no treshold) is brutal.

    Recommended essays:

    If you track the beneficiaries of this industry and development you get a glimpse of what the "Occupy" movement is fed by.