America’s $1.5 trillion student-loan industry is a failure

From MarketWatch:

Ask economists and policy makers to what extent we should be worried about 20 and 30-somethings’ historically high levels of student debt and you’ll get a broad spectrum of answers. After all, this group is also the most educated ever and higher education is becoming increasingly necessary to guarantee a decent standard of living in the U.S.

But ask many borrowers in this generation whether they worry about how the loans will affect their future and you’ll get a slew of bleak replies: It’s stopped them from getting their car fixed, switching jobs, buying a home and having children. Even a tax credit aimed at helping working low- and moderate-income Americans can be seized to repay defaulted student loans.

They feel that the $1.5 trillion in student debt has crippled their progress towards financial stability. A paper released Tuesday by the Roosevelt Institute aims to put some economic rationale behind those sentiments…

Continue reading at MarketWatch…

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