STUDENT LOAN CRISIS

Long before the COVID Pandemonium struck, there was a college debt crisis in the U.S. The 43 million Americans carrying student loan debt – averaging more than $32,000 per borrower – were allowed to skip payments during the economic shutdown, a measure implemented as part of Congress’s CARES Act bailout plan.

The reprieve ends on 1 October unless Congress renews it.

Democrats in Congress are pushing to extend the deferment, with some urging outright cancellation of $10,000 of each borrower’s debt. Republicans are mulling extending payments’ suspension, but only for borrowers who have no income.

Before the economic shutdown, about 2 percent of workers with a bachelor’s degree or higher were unemployed; in April, the proportion quadrupled to 8 percent. More than 85 percent are still jobless.

The U.S. education department has yet to weigh in on the proposals, saying in a statement it is “still assessing its’ options.”

TREND FORECAST: Beyond college debt, current and former students are saturated with credit card, car, housing debt, etc. Thus, they will fall deeper in personal debt and despair as many who are out of work won’t find jobs, and those that do have jobs will lose them.

The implications will spread across the economy – from real estate to retail, from leisure to hospitality – with all sectors dragged lower as younger generations grow poorer… and so, too, will the homeless population.

As “people lose everything and have nothing left to lose, they will lose it,” thus, crime among the indebted student sector will sharply rise.

10 Comments
  1. Jay Jericho 1 week ago

    Debt Jubilee, please.

  2. Philip Zyrski 1 week ago

    Here’s another reason why colleges and universities are obsolete! Besides the obvious reason “It’s not what you know; it’s who you know.” Always been that way…always will be that way! Another reason is that you’ve made such an enormous investment into your future. What do you have to show for your investment? Student debt that will last until you reach your sixties?!?!

  3. Mountain Man 1 week ago

    There has been this stigma that if you don’t go to college you won’t be successful. That’s true for certain professions but not for all. If you accumulate debt in pursuit of a degree that can’t achieve a return on an investment to overcome the debt, then the debt acts as an anchor to hold you down and back. It all depends on how you define success. There is a great demand for quality trades people that recognize the importance of striving to be the best at what they do. Happiness is a critical component of success.

  4. YoungCajun 1 week ago

    @ Philip Zyrski: So true. It’s called nepotism and it exists in every country of the world.

  5. a1achiropractic 1 week ago

    If we are honest with ourselves, we all had dreams or have dreams. The people I went to college with took student loans out too, in order to fulfill their dreams. Most of us paid them back. In a way it taught us that we couldn’t have everything we wanted until these debts were gone. The things we did not have were cheap interest rates or easily obtained credit. We were forced by high interest rates to learn how to get out of debt and to be careful about entering into it again. HEAL loans at that time in history were 14% interest. I think these lessons can be learned by younger generations too.

    However, the younger generations will have a much tougher go of it, because the rotten stinking government has torpedoed the economy and they now have no way to earn an income. This would have embittered me and it will them too. The thing to watch out for is where will they vent their rage, at the older generations or at their phony government and corrupt political parties.

  6. crazyjoecus 1 week ago

    its a serious situation and the education system makes it worse. There is no connection between education and employment. If things get bad enough you will find people queueing up outside if army recruiting stations. That is how you will know we have hit rock bottom. Hate me if you want but its the truth.

    • Kit Knight 4 days ago

      Re: “there is no connection between education and employment”

      “The U.S. Department of Education’s National Center for Education Statistics (NCES) has conducted a biennial analysis of employee earnings data, ordered by education level. According to the findings, those who hold a college degree attract a much bigger salary than those who do not… an average salary earned by bachelor’s degree holders is 66% higher than that earned by those who hold only a high school diploma. Over the last twenty years, while there has been an increase in the wages of college-educated workers, there has also been a decrease in the wages earned by individuals with only a high school education.”

      Source: http://educationcareerarticles.com/education-articles/higher-education-articles/salary-differences-between-college-graduates-and-non-college-graduates/

  7. JustSayin 6 days ago

    Push back against the politicians, not each other. We need each other more than ever !

  8. John Wieczerza 2 days ago

    These students pay tens of thousands of dollars and all they learn is how to destroy statues, burn down building and riot endlessly.

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