Seniors in debt over kids’ school loans

“The early-morning calls from debt collectors continued even after her massive stroke, waking Bella Logan to daily reminders that she owed $75,000 in student loans. Logan is 94.” This is from today’s Columbus Dispatch, and the story is a grim recessionary tale:

Light at the End of the Road

“The federal government garnisheed $200 a month from Robert Austin’s Social Security checks for years for student-loan debt, leaving Austin without money he needed for medications. He is 83. After Ray Stockman’s wife died, he wanted to move but was turned down three times Continue reading “Seniors in debt over kids’ school loans”

Student loans to soon trigger economic crash

You may not want to hear this, but a threat is facing the U.S. economy that no one is talking. As discussed today in Le Monde, a veritable Frankenstorm of factors is now coalescing to crash the U.S. economy in the near future, along with other nations. Student loans are spiraling out-of-control  due to declining family incomes, skyrocketing tuition costs, and the wholesale abandonment of public universities by state governments. Christopher Newfield writes in “America’s Degree Scam” that “student debt may succeed subprime mortgages as the next disaster in the crisis of US capitalism. It is estimated at more than $1-trillion and has doubled over the last 12 years. Average debt for graduates with student loans rose to $23,200 in 2008; public university debt was only slightly lower, at $20,200. Despite the impossibility of discharging student debt through bankruptcy, the student loan default rate has gone from 5% to 10% between 2008 and 2011.” A similar story entitles “Debt Tops $1-Trillion” appears in the current Voice of Detroit. Continue reading “Student loans to soon trigger economic crash”