A statistic that’s hard to believe. Let’s think about it – more Americans own credit cards than have student loans. But thinking about the state of the economy, how hard it is to find a decent job with benefits (especially if you are a recent college graduate), it makes sense that the collective balances on student loans is much higher than the collective balance on credit cards (plus Americans got hampered earlier during the Great Recession by credit card companies with increased interest rates or reduction in the maximum line of credit or both).
Did you realize that, in the vast majority of instances, student loan debt is not dischargeable in bankruptcy? In other words, if you take out a significant amount of student loans during college, and have difficulty making those monthly payments, those student loans become a noose around your neck.
And you think the collection agencies for credit card companies are bad? I’ve heard horror stories about efforts to collect on student loan debt. Yikes.
Americans, individually and collectively, have borrowed so much, we are overwhelmed by our debt.
To get a better perspective on the issue of student loan debt, I’ve attached a link to On Point with Tom Ashbrook. A recent show – Paying Student Loans – aired on April 23, 2012.