Article Image
IPFS News Link • Economy - Economics USA

Pimping Youth: Student loan debt now surpasses total credit card debt

ne of the more ominous statistics coming from this recession is that student loan debt has now surpassed total credit card debt in the United States. The reason for this is based on the deep impact of the recession. Credit card debt peak at $975 billion back in September of 2008 and is now down to $826 billion. This is good news right? Well the main reason for the decline has been through the rise of bankruptcies. As this number decreased student loan debt has continued to soar and is now larger than total credit card debt. Part of it has to do with the fact that you are not allowed to discharge student loan debt through bankruptcy. The government is the biggest player in the student loan market but the banks are the folks dishing out the loans. Similar to the housing bubble, when banks and government combine you usually end up with inflated prices and very wealthy bankers. The working and middle class end up paying for the bad bets in the end with inflated prices and giant amounts of debt.

1 Comments in Response to

Comment by Ed Price
Entered on:

Is there any student loan that does not have a Social Security Number connected to it? Is that SSN your number, or is it the number of a SS account? If it is the number of a SS account, and not your number, why did you sign the paperwork that said it was your number, rather than signing as the account holder or trustee of the account? Because you didn't know. Did they explain it to you?

There is abundant fraud on their part for not explaining the details of what was going on in the loan. And how does it go? Something like, "Fraud vitiates all contracts." ALL contracts. No loan. You are free and clear.

Of course, then there is the part where they didn't loan you anything, anyway. Jon Stuart is applying this part of the concept to mortgage "loans" and is winning.