U.S. student loan debt has increased by 25% since 2008, according to the Federal Reserve Bank of New York.
From Justin Lahart:
Mortgage debt, home equity loans, credit card debt and auto loans are all down sharply — partly because people are being more careful, but also because many have defaulted.
But student loans are up sharply. There was $550 billion in student debt outstanding in the second quarter, up 25% from $440 billion in the third quarter of 2008.
And yet we have the worst job market for graduating college seniors since The Great Depression. I can’t help but feel that this is where the economic collapse of America is going to come from, not from medicare or medicaid maybe not even from the Bush Tax cuts. This system of student debt is unsustainable and has basically removed an entire generation from the American Dream.
As part of this generation, I would like to express that fact that this was a major contributing factor in the Arab Spring, the revolution going on in Spain, and the riots in London. This type of climate leaves young people disenfranchised, angry, and poor. The complete circus that is American politics destroys more faith in the system than it restores. The rich get richer, the poor get poorer, the privileged get more privilege and the oppressed become more oppressed. Society isn’t creeping towards a breaking point, it’s running at full speed. Once it hits, chances are it won’t be pretty.