Nearly 40% Of Student Loan Borrowers To Default By 2023

[DamianTV]

https://www.zerohedge.com/news/2018-...s-default-2023

Over three years ago, when the full extent of the student debt crisis was becoming apparent, the Treasury Borrowing Advisory Committee released a startling analysis and long-term forecast which showed two things: i) up to a third of all student loans are likely to end up unrepaid...



... and ii) the total amount total student loans, which currently amount to $1.48 trillion (nearly 50% more than all the credit card debt in America), is set to hit a whopping $3.3 trillion by 2024.



Fast forward to this week, when a Brookings Institution report offered a new set of dire observations suggesting that "the looming student default crisis is worse than we thought."

The analysis "suggests that nearly 40% of borrowers may default on their student loans by 2023," a staggering number if one assumes the TBAC's forecast that there will be roughly $2.5 trillion in student loans outstanding by 2020 (see chart above). It would mean that no less than $1 trillion in student loans will be in some form of default in two years, an outcome which will necessitate another indirect, if ultimately taxpayer funded bailout from the US treasury: recall that the vast majority of student debt is currently issued by the US government.

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Full article on link

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Is this really the sign of a good healthy and strong economy for those that have no other choice but to live on Main Street?

[phill4paul]

Who would have thought that a curriculum built on social justice issues would have led to the inability to pay back student loans?

[timosman]

Who would have thought that a curriculum built on social justice issues would have led to the inability to pay back student loans?

Well, at least Uber will not be complaining about drivers shortage.

[dannno]

I was talking to someone in HR who works at an architecture firm and they received a wage garnishment the other day from the government for about $220k for student loans for one of the architects.

They are taking about $750/mo out of his paycheck per month (which goes up if he gets a raise) for the next 25 years.

[Todd]

We were given an answered prayer this year when by miracle we came into a situation that allowed us to pay off the wifes loans. Until that time, we were certain we would never pay them off in our lifetime and probably never retire. Let me tell you from 1st hand anecdotal experience that they are a TREMENDOUS Burden and life drain. There were many times I thought we would eventually default. And we were from a generation that was on the front end of the problem. Our college degrees are overrated. I'm very thankful for the critical thinking skills I gained, but not much else. If I had to do it all over again, I would do things differently to avoid the stress.

[DamianTV]

*bump*

Im wondering what this statistic will look like if we have another major stock market crash like in 2008 before 2023? Its not that far off and is plenty of time for another cyclical crash to occur. If we hit full on default, I would expect this 40% number to be much much higher. So is all that debt in student loans really worth it?