Top Pro & Con Arguments
Student debt could cause another financial crisis.
As of 2012 student loan debt was over $1 trillion dollars, and more than 850,000 student loans were in default.According to the National Association of Consumer Bankruptcy Attorneys, student loans are “beginning to have the same effect” on the economy that the housing bubble and crash created. Former Secretary of Education William Bennett, PhD, agrees that the student loan debt crisis “is a vicious cycle of bad lending policies eerily similar to the causes of the subprime mortgage crisis.” On Feb. 3, 2012, an advisory council to the Federal Reserve also warned that the growth in student debt “has parallels to the housing crisis.” As of Jan. 2013, the rate of default on student loans hit 15.1%–a nearly 22% increase since 2007. Read More