Last year was a disappointing year for credit card debtors everywhere, as their unique collective title of "largest group in debt" was trumped by those with student loans. These students are expected to top the trillion dollar mark within the year, landing yet another blow to those with credit debt who have held their proud title for decades.
According to the New York Times, a whopping two-thirds of those who graduated with bachelor's degrees in 2008 were in debt, compared to 1993's underwhelming student debtors who only comprised less than half of the year's graduates. The 2008 student debt front-runners had an impressive average of $24,000 in debt apiece, which has really been giving those in credit card debt a run for their borrowed money.
To rub even more salt into credit debtor's wounds, apparently student debt is considered "good debt" by Susan Dynarski, who is a professor of education at the University of Michigan. Dynarski lumps student debt into the same "good debt" category as mortgages, especially to all of those who have lost their homes after the recent mortgage crisis.
In an effort to add even more insult to injury, the New York Times reports that both Barrack and Michelle Obama graduated school with over $60,000 worth of student loans apiece. Apparently it is no longer good enough to have credit card debt to win the presidency, but mountains of student debt as well.
There is one good piece of news for those in credit card debt though: those in debt from student loans cannot use the same bankruptcy escape plan, and their wages are subject to being garnished over time as well. With these invaluable tools at their disposal, it might prove to be the credit debtor group's ace in the hole, and with some patience and a lot more rampant consumer spending, those in credit card debt might one day retake their precious title of the group with the most debt in America.
I feel that it is unfortunate that those who apply for a student loan and can't pay for it, are unable to file for bankrupcy,but student loan debt is up there with credit card debt. Many people say that student loans are good investments, however how good are they if you can't find a descent job that will allow you to pay the loans back? Student loans, can sometimes leave a person with their back up against the wall despite the fact that the loans were taken out to invest in their future.
ReplyDeleteI think a lot of people fail to realize that any gross debt, no matter the source, is hurtful to everyone. Massive outstanding debt puts a strain on the entire economy and in the environment we have now it's especially important for everyone to be concerned about it. We, as a county, need to be just as wary of the student loan crisis as we are of credit card debt.
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