Student loans outstanding will exceed $1 trillion this year — from USAToday.com by Cauchon
Excerpts:
Students and workers seeking retraining are borrowing extraordinary amounts of money through federal loan programs, potentially putting a huge burden on the backs of young people looking for jobs and trying to start careers.
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 (emphasis DSC). Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York.
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Students are borrowing twice what they did a decade ago after adjusting for inflation, the College Board reports.
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“It’s going to create a generation of wage slavery,” says Nick Pardini, a Villanova University graduate student in finance (emphasis DSC) who has warned on a blog for investors that student loans are the next credit bubble — with borrowers, rather than lenders, as the losers.
From DSC:
Again, this speaks for the need for higher education to work hard on reinventing ourselves — innovating and thinking creatively to come up with significantly lower cost alternatives in offering a quality education to the youth of today.