Jan 23 2012

The Student Loan Bubble Continue to Grow

US Housing Finance: Is Government Involvement Necessary ...The occupy Wall Street movement has mostly been seen as a movement against the unethical wealth-gathering tactics of the super rich. Everyone is aware that Countrywide Mortgage engaged in predatory lending and was instrumental in the housing bubble burst. In recent years, Salle Mae has come under a lot of scrutiny for giving student loans to people who have professional goals that are impractical. This act by Sallie Mae and other lenders has led to an increase in students with defaulted student loans. The simple fact is that outstanding student loan debt is growing by more than 5% each year and shows no evidence of slowing. A recent news report showed that almost 14% of college graduates from the classes of 2006-2010 can’t find full time jobs. Student loan experts stated that only 55% of people between the ages 16-29 have jobs. That is lowest rate of employed college graduates since 1945. This translates into one out of every 5 young adults living beneath the poverty line. The federal government can do more to stop this madness.

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