Student loan debt clock ticks to $1.57 trillion on Election Day 2016
The academic bubble is about to burst, as academics in their infinite wisdom tell us that they know best how to run our society and civilization. Doesn’t that seem strange to you? They don’t seem to have their own house in order, and yet they want our entire country to function as one giant, really interesting college campus. These same academics want to tell us how to vote, redistribute wealth, and how to think, well, I think doomsday is right around the corner, and I’m afraid what’s to come won’t be pretty. No, I don’t want to be the one to say; “I told you.” Surely, there are others with more followers on social networks who see the reality of the situation to give that slap when the time comes. Okay, so let’s talk, okay?
40% of student loans are technically in default (90 days in the back with no further catch-up agreements). That’s $583 billion in defaulted loans that we may never see paid off. Trust me when I tell you that the college loan bubble has burst and it is an extreme crisis. Why is this allowed to continue? Well, if it stops, it will collapse academia, it will become a big problem for our federal government, it will add over 1/2 trillion to our $20 trillion national debt, and it will cause heartbreak for millennials whom the Democrats have almost promised “Free university for all”. “during the 2016 presidential election.
Still, by the time the election is over, student loan debt will be $1.57 trillion, though official figures claim it’s only $1.2 trillion, which was actually the figure before the start of the 2015 academic year. .
If you don’t see the enormity of the problem, let’s talk about the auto industry right now. It turns out that the number of “subprime” auto loan defaults is at another all-time high of 4.5%: Subprime means loans made to people with no proof of ability to pay or marginal credit scores, perhaps from low socioeconomic borrowers. The last time this happened, the auto industry collapsed and needed a big bailout, and now we’re hitting those same numbers, and we realize this is only 4.5%, not 40-50% like the loan problem. student.
Scared yet? Well, today is Halloween 2016, and I am, and no, there won’t be any good witches flying on their broomsticks to win the next election and using hocus pocus to make this problem go away; in fact, both presidential candidates are likely to see the auto loan problem get worse, as well as the student loan debt problem, not to mention our stock market is breaking all-time highs with PE ratios and records for the major stock indices.
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