Contact Attorney Richard Keyt: 480-664-7478|rk@keytlaw.com

Recovery Threatened by Runaway Student Loan Debt

Today’s Middle Class is feeling squeezed from multiple directions: underwater with their homes and mortgage loans, feeling the impact of a faltering economy, and overwhelmed by debt.  Student loan debt is a non-yielding threat to the majority of struggling middle-class professionals and, surging above $1 trillion, U.S. student loan debt has surpassed credit card and  auto-loan debt in the U.S.  The National Association of Consumer Bankruptcy Attorneys warns that escalating student loan debt and delinquencies could be the next debt bomb for the U.S. economy.

The Bubble: Higher Education’s Precarious Hold on Consumer Confidence

National Association of Scholars:  “The price of attaining a college degree has skyrocketed while the rewards of attaining a college degree have slumped. Sooner or later, people will notice that they are being asked to spend a great deal of money for a meager result. If enough people notice this and consequently decide not to spend at comparable levels and to seek lower priced alternatives—daisies instead of tulips—the bubble will burst.”

Dear Alma Mater: I Can’t Pay

Times Union:  “At New York’s colleges and universities, the arrival of a new school year brings anticipation tinged with anxiety. For many students, the second emotion is prompted by one nagging question: How am I going to pay for this? . . . As of July 1, HESC listed 145,437 accounts with $1,983,922,931 in college loans that had gone into default.”  That $2 billion consists only of money owed to schools in New York.

Copyright 2009-2015 Richard Keyt
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