Since I am basically in the endowment building business, its no wonder I keep harping on the “Student Loan Bubble”. But, I am not the only one! Check out this new blog post:
Here is the startling fact brought out in the post: if you look at the delinquency rate of student loans (excluding student in school and not subject to any delinquency), it’s a delinquency rate of approx. 21%.
Considering that the U.S. Gov’t is ultimately on the hook for these loans, and that people took out way more than they can reasonably expect to earn to ever pay back these loans (at least not in the short term), and that U.S. student loan debt exceeds U.S. credit card and car loan debts, and so on. Not a great picture and possibly a problem not just for under-endowed colleges and universities, but the entire U.S. economy!