Last week Jamie Dimon gave a speech indicating some perspective on college student loan debt.
In his speech he recited that one in six student loan borrowers are in default and banks are actually glad to be out of the student loan process because of the coming default wave. When Democrats controlled Congress in 2010, they voted to force commercial banks out of the federal student loan market.
How has the federally controlled student loan program turned out? On April 7th, the Wall Street Journal ran a story showing a brutal financial truth on student college debt:
More than 40% of Americans who borrowed from the government’s main student-loan program aren’t making payments or are behind on more than $200 billion owed, raising worries that millions of them may never repay.
Colleges and student loans are about to go through a financial crash. There will not be a bailout this time because the federal government has no more money.