re: Student loan bubble about to burst

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Education (especially higher education) is a privilege and not a righ

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Not just tuition. Prices for dorms or other forms of student housing continuously increase because people know they have access to these never-denied 20-40k yearly loans

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Under changes made by the Obama administration, more borrowers were allowed to lower their monthly student loan payments based on their income. The relief was welcomed by recent grads who hadn't yet landed a high-paying job, as well as others who were struggling financially after the Great Recession and feared defaulting on their loans.

But the expanded income-driven repayment plans come at a cost to the federal government, which lends about $100 billion in student loans each year. The program loses money because some participants, over the life of their loans, will pay less than they would under a standard repayment plan.

It's difficult to predict how much the program will cost in the future. But the Government Accountability Office estimates that loans issued between 2009 and 2016, originally projected to cost $25 billion, will cost $53 billion.
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The GAO found that the government will lose $21 for every $100 in student loans issued to someone who takes advantage of an income-driven repayment plan.

The number of people enrolling in these repayment plans has far outpaced what was expected. About 5.3 million people (24% of all borrowers) are currently paying back their loans this way, the report said

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And I, for one, welcome the coming collapse. Education (especially higher education) is a privilege and not a right. It's time we abolish the racket that is the Ivory Tower. And I say this as an employee of said tower.

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Neither should loans be seen as a means for upper middle-class people to have bigger boats or multiple Harleys at the detriment of saving for the children/s education.

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