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Tuesday, March 13, 2012

Student Loans: America’s Next Debt Bomb

One after another, the financial bombs will eventually detonate. Student loans are hugely problematic because the young who are saddled with these loans lack the jobs and resources to service the debt.
The Washington Post recently concluded that student loans could be America’s next “debt bomb”: “Bankruptcy lawyers have a frightening message for America: They’re seeing the telltale signs of a student loan debt bubble,” notes the Post. “Bankruptcy lawyers have seen a substantial increase in the number of clients seeking relief from student loans in recent years.” Many of the “parents or guardians who co-signed the student loans face the prospect of losing their life savings, cars or homes to collection agencies.” In recent years, student loan debt has skyrocketed from $100 billion to $867 billion, “surpassing the $704 billion in outstanding credit card debt,” says UPI. There has been a massive “spike in” student loan debt owed to the Education Department over the “last three years.”
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