The Student Loan Bubble

Call it a bubble, call it a catastrophe, call it whatever you’d like, but student loan debt has become an increasingly large burden and more and more people are starting to notice. The issue was most recently highlighted by our largely stagnant Congress who allowed the subsidized loan rates for undergraduates to double to 6.8% because they were unable to agree on how to keep it at 3.4%.1 With student loan debt now topping $1 trillion,2 young Americans have been effectively barred from investing in other areas of the economy, the hardest hit sectors being home ownership, savings, and retirement investments.3 These staggering debts paired with decreased investment will slowly but surely drag down the rest of the American economy, and create “not just a problem for individual borrowers but a problem for all of us.”4

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