By now, we are all familiar with the housing bubble. It was a period in our history where home prices skyrocketed because of demand and speculation. As with all things that go up, they eventually come down. As result of this housing bubble, we’ve experienced record-setting foreclosure rates as people simply can’t keep up with the payments. For years there has been talk of a similar bubble emerging in the student loan market. Many industry experts believe that student loans will be the next wave to disrupt economic growth. A recent report puts the crisis in context as more Americans are opting to put off their payments. As opposed to using deferments and forbearance as safety nets, Americans are using these options as a means to avoid monthly payments. And these monthly payments can be substantial. As of 2012, the average student graduates with $27,000 in student loan debt; however, that’s just an average. There are many graduate struggling with $50,000, $75,000, and even over $100,000 worth of student loan debt. The kicker – the job market isn’t what it used to be.
Learn more about the student loan crisis by reading “More students delay repaying loans.” Also, we would like to hear your thoughts on the crisis. Do you have student loan debt? If so, how are you managing repayment?
Until next time, I’m Thom Fox for Cambridge Credit Counseling Corp.