This is a great review of Student Loan Debt crisis in this country, from Bloombergs “Chart of the day”- Reeve
2012-05-15 21:33:54.32 GMT
By David Wilson
May 15 (Bloomberg) — Colleges and universities are due for
a meltdown as students are increasingly saddled with debt they
can’t repay, according to Mark Cuban, the billionaire owner of
the HDNet cable-television channel.
As the CHART OF THE DAY illustrates, the amount owed on
loans for tuition and other educational expenses exceeds the
comparable totals for credit-card or auto debt, according to
quarterly data from the Federal Reserve Bank of New York.
Student debt rose to $867 billion last year, according to
the New York Fed, whose methodology for compiling the data was
revised during the year. More than $1 trillion of loans are
currently outstanding, according to the Consumer Financial
Borrowing to pay for higher education is “the collegiate
equivalent of flipping houses,” Cuban wrote two days ago on his
blog. “At some point, potential students will realize that they
can’t flip their student loans for a job in four years.”
For-profit education companies are among institutions at
risk as students look to other schools, according to Cuban, who
lives in Dallas and owns the Dallas Mavericks basketball team.
He cited the University of Phoenix, run by Apollo Group Inc.,
and Strayer Education Inc.’s namesake schools in the posting.
Cuban received a bachelor’s degree in business
administration from Indiana University’s Kelley School of
Business in 1981. He went there because tuition was the lowest
among top-10 business schools at the time, according to a story
on Kelley’s website.
–Editors: Stephen Kleege, Michael P. Regan