Posts tagged ‘loans’

May 7, 2013

Student Debt

Yes, MSM did report on the “milestone” of US student debt increasing to over one trillion dollars.  They get a cookie for that, but only an oatmeal raisin (you know, the ones where the raisins totally look like chocolate chips).  But, they ignored a “promising solution.”  

Here, CNN and NBC’s pieces on the topic of student loan debt. 

However, as stated by Project Censored, student loan debt is the only form of consumer loan debt that has increased substantially since 2008.  The threat of massive student loan defaults requiring another taxpayer bailout is a systemic risk as serious as the bank failures that brought the US economy to the brink of collapse in 2008.  The Federal Reserve could introduce a new quantitative easing program to remove student loan debt, giving the economy a boost similar to that created by the G.I. Bill.  (Source)

That’s just a basic summary of Project Censored’s findings.  From there, they give readers links to sources with great reporting on the truth (and mess) of debts created by these loans.  

As stated on AlterNet, “even if by some miracle our unemployed and underemployed debt-laden graduates–” oh yeah, did I mention that nearly a third of college graduates are working jobs that don’t even require a degree? Well, that’s true, too (you don’t hear that that much, right?) –“all win decent jobs tomorrow, they money they make will go into paying off these now-delinquent loans instead of anything productive for the economy as a whole.  Banks will continue to see massive profits, in other words.”

The one “deep pocket” that could ease most of the pain for these students that comes up in these articles from non-MSM sites:  the Federal Reserve.  I mean, they did remove $1.3 trillion in toxic assets from the books of Wall Street…so….

So basically, what we have here is a mess.  A big one.  A vicious cycle that includes intelligent young men and women having no other options but to move back in with their parents, delay buying a house or a car, put off marriage and children, etc…all because they are already buried beneath such debt from loans that were supposed to be helpful and worth it.  (Hello, recipe for depression.)

Anyway, the bottom line here (since I can go on and on) is that this aspect of the crisis is highly under reported.  We’re told there’s no logical way out besides putting our lives on hold.