Student Debt Bubble - part 3

CURRENT DEBT STATISTICS

The last two decades have been marked by sharp increases in student debt, leading to record highs in 2013. According to a report by Mark Kantrowitz of Edvisors, the average debt per student is now $30,000. Debt has tripled since 1993 and the reason for it is simple: Colleges just keep hiking their tuition. And while tuition spirals upwards, real income for middle-class workers has essentially stagnated over the last three decades. Today’s graduates aren’t making enough to pay their loans and live a comfortable lifestyle. Analysts worry the most heavily indebted won’t have enough money to buy cars, houses, or much else. Worse yet, some may simply stop paying their loans altogether. This could lead to a severe economic downturn similar to the ones following the housing and dot-com bubbles.