Its incredible, but it’s true. America’s new debt is due to the institutional powerhouses. Who owns this crazy debt? People under 40 years old own most of it as per the chart below. And every year it grows like a wild fire.
from: Federal Reserve Bank of New York
The combination of student debt plus unemployment have cause a mass increase of delinquent balances in the recent years. Notice the inverse effect of other debt in the graph below. When students can’t pay their loans, they can’t get credit. With out credit, these young unemployed professionals can’t get mortgages, car leases, or a credit card.
It’s a shame, but this problem is only getting worse. So if you re thinking about borrowing money to go to college; think again. With the mass availability of information in the internet. People can educate themselves and do the jobs that Undergraduates and Graduates are fighting for, without falling into the trap of borrowing money that will not pan out prosperity.