Have Student Loans Become a Ponzi Scheme?

According to the National Center for Education Statistics, college enrollment skyrocketed 38 percent, from 14.8 million to 20.4 million, between 1999 and 2009. (The previous decade it had only gone up 9 percent.) This should be a good thing—except it was not accompanied by measures to make tuition affordable for working families who wanted to send their kids to school. Combined with the decline in the type of union manufacturing jobs that used to allow workers to be comfortably middle-class without a college degree, we’ve wound up with working-class families taking on debt to send their kids to college, which they are told will help those kids make more money.

…the same banks that broke the economy by creating that housing bubble are responsible for the student debt crisis—as well as the federal government, which issues student loans. “[T]hese debts were incurred with broken promises. Much of that money is owed to the government itself, and billions are owed to the banks we bailed out at taxpayer expense.”

Is the Near-Trillion-Dollar Student Loan Bubble About to Pop? | AlterNet

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One Response to Have Student Loans Become a Ponzi Scheme?

  1. Alex,

    You should check out the article I just pressed here: http://cas-csid.cas.unt.edu/?p=2013.

    Talk about the future of the university!

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