11 Rage-Inducing Facts About America’s Wildly Out Of Control Student Loan Debt Bubble

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Higher education has become one of the biggest money-making scams in America.  We tell all of our young people that if they want to have a bright future, they must go to college.  This message is relentlessly pounded into their heads for their first 18 years, and so by the time high school graduation rolls around for many of them it would be unthinkable to do anything else.  And instead of doing a cost/benefit analysis on various schools, we tell our young people to go to the best college that they can possibly get into and to not worry about what it will cost.  We assure them that a great job will be there after they graduate and that great job will allow them to easily pay off any student loans that they have accumulated.  Of course most college graduates don’t end up getting great jobs, but many of them do end up being financially crippled for decades by student loan debt.

In all of American history, we have never seen anything quite like this student loan debt bubble.  Since 2007, the total amount of student loan debt in America has nearly tripled.

Let me repeat that again.

Since 2007, the total amount of student loan debt in America has nearly tripled.

But of course the quality of college education has not tripled over that time.  Instead, it has progressively gotten worse.  At this point most college courses have been so “dumbed down” that the family pet could pass them.  If you would like to look into this more, you can find a list of 37 of the most idiotic college courses in America right here.

These days, most college courses do not require any actual writing.  Instead, your performance is judged by a series of “tests” consisting of multiple choice, fill in the blank, and true/false questions.  And the questions are usually ridiculously easy, because most of our high school graduates need to take remedial courses in basic skills when they get to college.

I spent eight years at public universities, and the quality of education that I received was a joke, and that was many years ago.  Now the quality of education has deteriorated so dramatically that most college degrees are essentially worthless from a practical standpoint, but for many professions you still need that “piece of paper” in order to “qualify” for certain jobs.

So the scam continues, and thousands upon thousands of “administrators”, “diversity specialists”, “career counselors” and “college presidents” are taking home massively bloated salaries at our expense.  Beautiful new lecture halls, residential complexes and sports stadiums are going up at colleges and universities all over the country, and textbook publishers are laughing all the way to the bank.

If everything but the basics was stripped away, the cost of actually delivering a college education to students would be quite low.  In fact, most learning could be done over the Internet.

But instead, the “college education industry” has convinced all of us that we desperately need their services, and that we shouldn’t care about the price.

Of course many of our young people are filled with regret once they get out into the real world and they realize that student loan debt is going to financially cripple them for the rest of their lives.

At this moment, America is drowning in more student loan debt than ever before.  The following are 11 rage-inducing facts about America’s wildly out of control student loan debt bubble…

#1 The student loan debt bubble has now grown to 1.4 trillion dollars.

#2 In 2007, the total amount of student loan debt in the U.S. was just 545 billion dollars.

#3 Over the previous ten years, student loan debt has grown by a staggering 176 percent.

#4 Americans now owe more on their student loans than they do on their credit cards.

#5 In 2003, student loan debt accounted for just 3.3 percent of all household debt.  Today, that number has grown to 10.5 percent.

#6 The current student loan 90-day delinquency rate is 11.2 percent.

#7 30 percent of all student loans in the United States are either in “deferment” or “forbearance”.  The most common reason a loan is placed into one of those categories is because the borrower cannot pay.

#8 It is being projected that a whopping 40 percent all student loan borrowers will default on their loans by 2023.

#9 From 2007 through 2017, “college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent.”

#10 In 2001, 18.6 percent of all U.S. households led by someone in the 18 to 34 age bracket were carrying household debt.  Today, that number has jumped to 44.8 percent.

#11 Each year, more than a million Americans default on their student loans.

This article originally appeared on The Economic Collapse Blog.  About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

10 COMMENTS

  1. As the father of a recently-graduated high school student, I can attest to the fact that most US universities are no longer worth the price of admission. In other words, there is no positive R.O.I. (Return of Investment). Pretty silly when one of the reasons students pursue higher education is to “become smarter and better prepared for the real world”. So after getting eyeball-flattening tuition estimates from several “prestigious” universities, we decided she would do a gap year and actually work. What followed was a 30 day certification course as English tutor; tomorrow she leaves for her first gig in Europe. It doesn’t pay a fortune, but it includes housing and beats slinging burgers. It will also look much better on a resume. In the meantime, we’re looking into overseas schools which offer good service at affordable rates. In other words, better ROI.

  2. I worked with student financial aid programs for almost 15 yrs..the federal government, when they had 3% loans and serviced them.
    What people need to be aware of is that the first thing funded in a student’s college budget is tuition & fees! This is a cost that is funded before the student receives the $$$! College t&f cost rise each yr and out distance inflation. They justify this by saying that they have to remain “competitive” with attracting the best professors, etc., for the school. BUT, the ultimate insult is that those high/well paid professors rarely teach undergraduate courses…the majority who pay their salary, they have a TA teach them.

    I talk to students to first learn a trade, a skill. WORK and SAVE $$$. Yes, you won’t go right away unless you’ve saved previously, but it sure beats a lifetime of indebtedness!!!! Student loans are now managed by the corrupt. Unlike other debts, it can’t be discharged in bankruptcy and they are working on provisions for garnisheeing Social Security!!!

  3. The DOE can do ANYTHING. They steal my husband’s money. He was in HIGH SCHOOL when I obtained MY student loan for the scam school I attended in 1988. I refused to repay the money. The school admitted they stole the money. They shut down in the middle of my education. I was STILL on the hook. I get my tax returns garnished every year. They take and he has to file and “injured spouse” form….they still take his money….they don’t care………that 8K I borrowed in 1988? I paid probably 6K of it back before I gave them the big middle finger…..it turned into about 22K when they found me……..it’s probably 60K now…even with the money they steal every year for the past…what 30 years now? Thieves…..the schools…AND the DOE…….

    • The D.O.E. pays private for profit banks to purchase defaulted loans BECAUSE WE ARE SUPPOSED TO BELIEVE THAT IT IS THE RESPONSIBILITY OF GOVERNMENT TO PREVENT FAKE BANKS WHO LEND FAKE MONEY FROM LOSING PROFITS ON THE SCAM OF LENDING FAKE MONEY ON A FRACTIONAL RESERVE BASIS.

  4. This is how the people who REALLY run America control us.
    Hitler called it “Interest Servitude”
    “Our” Federal Reserve prints money out of thin air then loans it out and we have to pay it back with real money.
    “Our” Federal Reserve is owned by the international bankers most of whom are not even Americans.
    END THE FED and you remove at least some of their power over us.

  5. Since most who who go to college are now women they know debt forgiveness will come via feminist movement. They’ll keep spending like theirs no tomorrow. That’s what they do best. I’m not going to associate the increased debt with increased women going to secondary. They can have the money, the power, the taxes, the stress, the ensuing health problems, lol, the power.

  6. What was it that the so called “banks” “lent” to the “borrowers”?
    Fake money pentagon military scrip Federal Reserve Notes cost nothing to create out of thin air.
    Fake banks pretend to “lend” fake money on a fractional reserve basis.
    There is no “STUDENT debt crisis”. THERE IS ONLY FRAUD AND SLAVERY UNDER MILITARY RULE WHERE THE ARMY PRINTS THE MONEY AND ONLY THE MILITARY CAN VOTE IN THE FAKE ELECTIONS.
    A nationally chartered “bank” is nothing by a FRAUD PRETENDING TO LEND FAKE MONEY AT INTEREST.

  7. Voters’ economic illiteracy allows this nonsense to continue. The Good Book says: “For lack of knowledge the people perish.” We borrow worthless ‘munny’ (digital dollars created out of thin air by the FED and banks) and pay back the loans by the ‘sweat of our brows’. The parasite banks get to buy everything in sight at zero cost. The Swiss National Bank has bought over $100 billion worth of FANNG stocks with Swiss franks they conjured up out of thin air. What is to prevent the Central banks and too big to fail commercial banks of the world from buying up all real, tangible wealth with ‘munny’ they conjure up on their computers at no cost? They would end up owning everything and anything of real value at zero cost. The rest of us would end up with only worthless currencies as starving millionaires, then starving billionaires, then starving trillionaires … Oh, they would roll back worthless currencies by deleting three, six or nine zeros, like Venezuela just did.
    And we are stupid and ignorant enough to let them do it and get away with it. There is no hope. Look no further than Venezuela to see our future. What they have done to them they will surely do to us. Mark my word!

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