Tag / student loans

by Hoosier Econ

More Proof Student Loan Debt Will Crash in the Future

Robert Wenzel over at EconomicPolicyJournal.com posted two impressive charts which defy the reality of economics and shows the coming student loan debt bubble will be a hard crash when it happens. Biggest reason student debt is skyrocketing is because most student loans are financed by the federal government. Unfortunately the only ideas being floated is more government intervention.

First chart is the mega growth of student loans compared to other loans in the economy
student loans 1

Another chart he posted shows that only 29% of people paying off student debts and the principle is going down.
student loans 2

by Hoosier Econ

Inflation Alert: College Textbooks

college textbooks

Recent data compiled is showing college textbooks are rising at a double digit rate. The National Association of College Stores has price comparisons on new textbooks college students buy.

    Average Price of New Books
    2007: $56
    2015: $72
    Price increase of 22%

Here are some other stats concerning college students and textbooks

    Average student spending for a semester of course materials
    $509

    Average college bookstore profit margin for a new book
    21.1%

    Percent of students who buy their books at their college bookstore
    47%

    Percent of students who say they have skipped buying a textbook because it was too expensive
    65%

H/T StatisticBrain.com

by Hoosier Econ

College Student Loan Debt Exploding

image

When talking about economic “bubbles” one that is hardly ever mentioned is student loan debt. CreditCards.com had this about the amount of debt:

Debt affects people of all ages, but an explosion of student debt is weighing down this generation of young adults like no other before. According to data from the Federal Reserve, U.S. student loan debt soared from $550 billion in 2007 to nearly $1 trillion by 2013.

An April 2014 Wells Fargo survey reported that 29 percent of millennials (people between 22 and 33 years old) are worried about paying off their student loans, and data from FICO show that the burden of student-loan debts is contributing to a downturn in the number of millennials carrying credit cards.

You can read the rest of the article here.