Total student debt outstanding appears to have surpassed $1 trillion late last year, said officials at the Consumer Financial Protection Bureau, a federal agency created in the wake of the financial crisis. That would be roughly 16% higher than an estimate earlier this year by the Federal Reserve Bank of New York.
The new figure—released Wednesday at a banking conference in Austin, Texas—is a preliminary finding from a study of student debt that the bureau plans to release this summer. Bureau officials said the estimate is based on a survey of private lenders, as opposed to other estimates that rely on a sampling of consumer credit reports.
CFPB officials say student debt is rising for several reasons, including a surge in Americans going to college in recent years to escape the weak labor market. Also, tuition increaseswhich many colleges say are needed to offset big cuts in state fundinghave many students taking out larger loans for more useless strains of liberal education.In addition, the interest costs on older loans are climbing as borrowers fall behind on payments, reflecting mounting financial strains, bureau officials said. New York Fed data show that as many as one in four student borrowers who have begun repaying their education debts are behind on payments. With the OCCUPY folks now demanding free educations with which to powder their noses, the US budget is going bust on yet another stealth trillion dollar entitlement program crammed into the national debt.
Remember too that one of the first financial maneuvers of the Obama administration was to bring all student loans under the federal aegis. Do you think this President had a plan? I do, but it was not one we can as Americans vote for again.
Department of Education and the National Endowment of the Arts? Dismantle...