(From the Los Angeles Times):
HEADING FOR THE STUDENT DEBT CLIFF
College graduates are defaulting on their loans in record numbers. The $1.1 trillion in debt is consigning jobless borrowers to an underclass and rivals the housing bubble.
Cable news channels regularly stoke their viewers’ fears about China holding $1.1 trillion of U.S. debt. But they’re focused on the wrong $1.1 trillion of loans.
The borrowers of this other $1.1-trillion debt are far more likely to default on their obligations: students, particularly those who went to for-profit colleges. The global consequences could be — and likely will be — staggering.
More than 38 million Americans have student loans outstanding. To put this in perspective, 38 million is the combined population of New York and Florida. And this collective debt is on par with the entire GDP of Mexico. READ MORE HERE