Opinion: The Scary Reality of the Student Loan Bubble in 5 Charts
"The explosion of the student loan bubble could lead to the next financial crisis in the United States, says a new federal report -which highlights the growing problem in these alarming new charts," reports Money Morning. "As of 2012, about $1 trillion was tied up in student loans - more than the total amount of credit card debt in the nation, the report by the Federal Reserve Bank of New York said. The majority of the student loans are backed by the federal government, which means the public bears most of the risk associated with student loans. And those loans are looking riskier by the day. That's because college tuition becomes more expensive every year, median income levels continue to fall, and hiring of young graduates remains tepid, especially for those with little experience. No longer does a bachelor's degree guarantee a secure job, enough income to buy a house or the opportunity to advance in a career. These days, a degree is often associated with debt, unemployment and the need to get another degree in order to get a good job."
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