That's sick. The average debt burden taken on by students and parents to get a collage education in 2010 is $34,400.
A lot of recent graduates simply can not find decent jobs and are earning under $30K a year. Starting salaries for college graduates dropped 5% between 2002 and 2007 (inflation adjusted), and are likely to have fallen MUCH further since the economic distress of the last three years.
Today about 70% of college graduates graduate in debt. One in seven student loan holders have defaulted and are in collections. Many are in garnishment, and up to 25% of disposable income may be garnished -- although anecdotal reports are heard that claim higher garnishments. The law limits it to 25% but some collectors are aggressive, and the persons in default are shy and beaten.
There are nearly two million young folks who have borrowed for college. One in four is delinquent, but not yet in default.
An graduate in default, is in default because they have a poor paying job. Say $12 an hour -- that's typical. Take home is $10, take away 25% garnishment, and those debt trapped youths are taking home $300 a week. The indentured slave class that supports the nearly $600,000 yearly income of Obama's economic Professor Egghead.
That's disgusting and sick.
Sources:
- http://www.coloradodaily.com/ci_18076249
- http://online.wsj.com/article/SB124181970915002009.html
- http://www.latimes.com/business/la-fi-student-loan-20110423,0,3353776.story
Also I’m sourcing my own recollections of data and cases I saw when I worked for a major debt collection company.