The next bubble that will burst?Posted: July 11, 2011
My friend and I were talking about student loan debts and he told me he had about 30k which shocked me. I thought my 15k was bad but his made me shudder. We chatted about how odd it was that gambling debts could be wiped out by filing for bankruptcy but not student loan debts. I believe that after the housing market crashing, student loans will be next. The main reason being is the economy. I have friends with masters degrees and they are having issues finding a job. How are they suppose to pay off their debts if they can’t find a job? Secondly, are the interest rates. I have seen some ridiculously high student loan interest rates. I’m talking double digits high. (I have a buddy with a 17% interest rate.) Lately, there are some talks of help for federal student loans but the private ones are still bothersome. Sallie Mae isn’t exactly the most understanding company. (I read of a man that had a 40k one only to have it default and end up being a 170k one.)
Of course there are people that believe that people who have student loan debit should live with the consequences. Sure it’s easy to take that route but education in America isn’t exactly cheap. (6k for one semester at my school not counting books and I had in state tuition and it was a public college.) Understand that many of the people that take out these loans are working to become your doctors and lawyers. Your kids’ teachers.
So far I have 15k left from the 18k that I borrowed. That’s barely a dent in it and I have been living very frugally. (I pay student loan, rent, utilities first.) My goal is to have it paid off before I head off overseas for school. (It’ll be about an 12-18 month plan and I want to have an associates in my hand before I go as well.)