Student Loans: The Next Bailout?

Parents Forum
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<p>"Here’s what we do know about student loan debt: it’s roughly $1 trillion in size, greater than either auto or credit-card debt and second only to mortgage debt in the U.S. </p>

<p>Borrowers in their 30s today owe $28,500, on average. The debt burden has soared just as — and partly because — the recession hit, so younger graduates carrying the highest balances are hit with the double whammy of a weak job market (that still isn’t showing any sign of rapid improvement). ...</p>

<p>... This, in fact, is why it may be far less costly for taxpayers in the long run to forgive as much of the current student-loan burden as possible. Before doing anything like that, however, there must be systematic reform to ensure debt loads simply won’t start to pile up again. (Not to mention the need for repercussions for those borrowers who most benefit from any such initiative, for the sake of fairness.) That is why the need for innovation or overhaul is so pressing.</p>

<p>One thing is certain: if we do nothing to alter the status quo, we will have no one to blame but ourselves for the bleak outcome."</p>

<p>News</a> Headlines</p>

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<p>Wouldn’t we have said exactly the same about mortgage debt? We bailed out the banks, not the homeowners.</p>

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<p>You carry student loans forever right? Even through bankruptcy (in most cases)?</p>

<p>The only way a bank (or the government) could ever possibly lose money on a student loan is if you died without paying at least the principle the amount back. So in short, don’t expect anything to happen anytime soon!</p>