From our good friend Tim Iacono we get some more info on the massive amounts of student debt piling up.
I was very fortunate to have sports (golf and tennis) pay my way through University however I did have many friends could not have gone to post-secondary school without student loans. These loans are valuable to many people but the fact is there are drastically more post-secondary degrees earned each year than there are high paying jobs. As Tim outlines below the student debt has grown to over 40% of the total government assets. Unless we start creating more high paying jobs the fear is that these University graduates will never have the chance to pay these debts off…
Click here to visit Tim’s website and read more great posts.
The Student Loan Hockey Sticks
Via this Bloomberg story on Friday by Noah Smith come the two charts below that help to explain why the nation’s student loan mess (that continues to slowly spiral out of control despite pleas from indebted students) will not likely see any substantive reform efforts.
Granted, the lower chart is a bit misleading because it doesn’t include Federal Reserve assets (another even more impressive hockey stick) or land owned by the federal government. Nonetheless, this is the sort of thing where it is sure to end very badly and whoever touches it between now and then is likely to be blamed for that outcome.