Student debt -- the next bubble?
BBC News - US student loans: The trillion dollar debt trap: " . . . The federal government has strong tools to help recover debt from delinquent borrowers, including garnishing 15% of their take-home pay, and retirement income, according to education finance expert Mark Kantrowitz, publisher of the FinAid and Fastweb sites. "It's like a trip through hell with no light at the end of the tunnel," he says. Borrowers in default cannot get a mortgage or a car loan. And their credit will be ruined, which can affect their ability to rent a flat or even get a job. "We are at a tipping point," says Anne Johnson, director of Campus Progress, an advocacy group. The long-term impact of heavy debt on young people is overwhelming, says Ms Johnson. "It's changing their entire economic outlook for their future," she says. "It's a huge challenge." She says that the rising cost of higher education is a large part of the problem. In the past 30 years, tuition costs have risen by about 1,000%. A four-year degree from a private university can cost close to $150,000. . . " Read more here
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