Jill Schlesinger for CBS News asks a good question: Is student loan debt the new subprime mess in our country?
While other types of debt has decreased, from home mortgage loans to credit card balances, since the recession, student loan debt has increased by a whopping 56 percent since 2008, as Schlesinger reports.
It’s a “college lending spree,” reminiscent of the mortgage lending spree (with plenty of subprime loans) that precipitated the housing bubble and thousands upon thousands of home foreclosures.
The problem with student loan debt is it usually cannot be discharged in bankruptcy. That means there’s poor lending standards, as Schlesinger describes it; practically anyone can get a student loan, no matter whether you’re going into a known in-demand occupation or not.
But there’s one ray of light in all this doom-and-gloom.
People having trouble making ends meet generally can still file for bankruptcy and/or work things out with their mortgage lender. By doing so, this would free up cash that could be used to help make student loan payments.
View the original here:
Student Loan Debt Hits ‘Serious Delinquency’ Rate