Student Loan Debt Bomb: Set To Blow? | 101 KXL

Student Loan Debt Bomb: Set To Blow?

Written by Steve Leader on April 4, 2014
Julia Anderson image III

Remember the housing bubble? Now, what keeps some economists up at night is the growing amount of student loan debt.

FM News 101 Business Expert Julia Anderson says college loan debt has crossed the one-trillion dollar mark– more than all of our credit card debt. She says kids are coming out of college with an average of $26,000-$29,000 of student loan debt. The figure is much higher for specialties like medicine.

Anderson says the years it’ll take to pay off that debt means young people are putting off buying houses, buying cars, getting married, having children, or saving for retirement.   All that is bad for our consumer-driven economy, she says.

Student loan debt has been piling-up for some time. Anderson says many people who lost their jobs during the Great Recession had no choice but to borrow money to go back to school to learn new skills.  Students have also been facing huge increases in the cost of higher education.

Anderson says almost half the students attending the University of Oregon this year have taken out  loans to help pay for the cost of getting a degree.  Costs at U of O can run as high as $41,754 for a non-resident, $24,582 for residents, according to Anderson.

Julia Anderson is heard Thursdays at 6:49am and 8:49am.

 

Posted Under: Business News, Local Headlines

2 replies to “Student Loan Debt Bomb: Set To Blow?

  1. Jeff

    My wife and I have a total of $240k in loans – undergrad, an MBA and a phd. We can’t buy a home or have kids, all because we wanted to educate ourselves. We did the right things in life and now we’re saddled with this. We make $130k combined and live paycheck to paycheck. Its the $1500/ month loan payments at 6.8% and higher, some as high as 10%. These payments will be FOREVER. I can get an auto loan for 4.7% and walk away from it if need be. I’m fine with paying it but make it reasonable. 25% of my net is too much.

    Reply

  2. Hammerheart

    Maybe some day you’ll get the message at Counter-currents.com by the people concerned with that exact point.

    Reply

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