Biz, U.S.: Bubble watch: Is the student loan market about to crash?
- $24k average amount of debt a graduating college student has
- $800B amount in outstanding student debt — with 30% of it securitized
- 40% number of student loans that are in default after 15 years; not good source
- » This is huge. To put it in perspective: Student loans are the nation’s largest source of debt – even more than credit cards. Tuition has risen faster than inflation, and lenders are quick to help students. That’s because until 2009 the government had a program in place that purchased loans that weren’t paid back. That sounds a lot like the housing market, right? Couple all of that with the fact that college graduates are having harder times finding jobs, and you don’t get a very good picture over the long-term.