Can tomorrow's College Grad own a home


Debt begats slavery.

Inquiring minds are looking at an article and jumping to conclusions! The NYTimes has an article Placing the Blame as Students Are Buried in Debt and the question begs to be asked, “If we saddle our ‘best and brightest’ with huge debt, how are they going to pay for expensive homes?

Like many middle-class families, Cortney Munna and her mother began the college selection process with a grim determination. They would do whatever they could to get Cortney into the best possible college, and they maintained a blind faith that the investment would be worth it.

Today, however, Ms. Munna, a 26-year-old graduate of New York University, has nearly $100,000 in student loan debt from her four years in college, and affording the full monthly payments would be a struggle. For much of the time since her 2005 graduation, she’s been enrolled in night school, which allows her to defer loan payments.

From specific case to general case:

The Project on Student Debt, a research and advocacy organization in Oakland, Calif., used federal data to estimate that 206,000 people graduated from college (including many from for-profit universities) with more than $40,000 in student loan debt in that same period. That’s a ninefold increase over the number of people in 1996, using 2008 dollars.

Oh, and just so it isn’t lost, there is the problem of repaying:

Ms. Munna does not want to walk away from her loans in the same way many mortgage holders are. It would be difficult in any event because federal bankruptcy law makes it nearly impossible to discharge student loan debts. But unless she manages to improve her income quickly, she doesn’t have a lot of good options for digging out.

The problem of a debt bubble bursting is that debt has wedged itself into every crack of the economy creating a problem much larger than most realize.

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