What really caused this problem to take off was the Great Recession. The job market in terms of overall numbers employed did not recover to 2007 levels of total employment until late 2015...by which time it was still a significantly lower percentage of the total working age population due to population growth.
When you combine sky high student loan costs with an economy that does not produce the jobs people took out the student loans to get, you get massive defaults. Something had to give. If people have no money they can’t pay their loans.
Probably about half of the student loans went for degrees that had very low pay potential.
The colleges knew this but were only too happy to grab the cash.
Claw back the delinquent loans from the colleges.
Nope. Obamacare gave government a monopoly on student loans. All restraint on loan limits went out the window. Obama is guilty of creating this problem. Biden’s loan forgiveness promises made it worse. The cure is to ruin the credit rating of people who default on student loan payments.
No.
“Instant gratification” caused this debt crisis. The lust for I want it now.
Now subsequently we are stuck with a payment crisis because of all the deadbeats.
Bet they still have the latest iPhone.
“If people have no money they can’t pay their loans.”
Not my responsibility. Our responsibility was to pay our tuition at the beginning of each semester. Our responsibility was to save in order to send our kids to college and pay their tuition at the beginning of each semester. I made sure to get the maximum 21 hours each semester and summers to graduate in 3 years at age 20 instead of dragging it out longer meaning more $$$$. That was before kids could get college credit in HS which ours did. And we all had part time jobs and still had time for all the extra activities.
Today’s students whine about 6-9 hours. Set the phone down, get off your butts and get to class! No wonder the work force is in the dumpster.
The change Congress made in the bankruptcy law so that student loan debt is non-dischargeable.
If student load could be written off in bankruptcy, then most of the current student loans never would have been made in the first place. You would either pay cash for your "Studies" degree, or you would study something useful, or you would go to work.