Since the debt ceiling is to rise, a lot of students fear that their interest rates are going to sky rocket. A lot of students that have been out of college for years now are still paying back their debt for going. The skyrocketing amount of student loan debt is one cause for concern. This is one hurdle that seems it will never be crossed over. They are calling it America’s next bubble. Student loan debt has grown over 500 percent over the past 12 years, and continues to steadily grow. The other debt from credit cards, households, mortgages, etc. have only climbed 100 percent in the same amount of time.
So what does the outstanding student loan debt look like now? We are looking at over $930 billion in student loans, and is expected to reach around $1 trillion by the time the year ends. The student loan debt is affecting the economy. A lot of students that graduate are delaying the other things in their life such as buying cars, houses, getting married, and having children because they have a lot of student loan debt to hurdle. Those that cannot pay their student loans are making the debt rise, but honestly with the economy and jobs in a downfall, who can blame them?
Student loans have become to much available for those students out there, and the risk of this is that if they do not pay it back then everyone can suffer from it. Although, with the economy at its worst, who is to say that are actually able to pay it back instead of paying for their rent or mortgage payments. People are choosing to spend their money on their other housing bills to continue living.
For more information about America’s next bubble, check out Fox News.