Student Debt

Similar to other types of debt, such as auto loans and home mortgages, student debt is a form of debt taken by a person from a lending institution in order to attain higher education. Student debt, like other forms of debt, can also go into default; this happens if the loan has not been paid after a certain time period.

Over the past few years, student debt in the U.S. has increased significantly, recently surpassing over $1.0 trillion. What is troubling with a large portion of student debt is that it is guaranteed by the federal government; therefore, the government has to absorb the losses from those who default on their student debt. If the default rate increases, this additional liability can have a significant impact on U.S. national debt.

In the second quarter of 2014, the student debt in the U.S. economy stood at $1.12 trillion—an increase of $124 billion from a year ago. About 10.9% of all the student loans were more than 90+ days delinquent or were in outright default.


Can it be true? The U.S. Department of the Treasury has reported that for the federal government’s fiscal 2013 year, which ended on September 30, 2013, the U.S. government budget deficit was $680 billion—the smallest budget deficit in five years.…

Gold bullion prices are taking a hard hit. Headlines are blaring with negativity, and bears continue to say the precious metal is useless. Dear reader, they may have done a good job driving the gold bullion prices lower, but they…

A report from the National Institute of Retirement Security (NIRS) found that American households have a shortfall of anywhere between $6.8 trillion to $14.0 trillion when it comes to their retirement savings. Looking at their assets only in their retirement…

I’m sure the politicians will have a field day with this today… The U.S. Bureau of Labor Statistics (BLS) reported this morning that the U.S. economy created 236,000 jobs in February 2013. The U.S. unemployment rate dropped to 7.7% in…

There’s a one-trillion-dollar student debt time bomb ticking in the U.S. economy. And it’s only matter of time before it implodes and takes the sovereignty and credit rating of our nation with it. The majority of student debt in the…

The threat of another credit rating downgrade for the U.S. national debt is increasing. But it’s not just due to the government’s inability to control its deficit; it’s about items not considered in budget talks. Student debt, for example, which…