The massive bubble in higher ed has been expanding for some time now, but late last year it hit a new, ignominious milestone when total student loan debt topped $1 trillion. Not only is this a record high; it is 16 percent higher than already pessimistic estimates by the Federal Reserve Bank of New York.Don’t think you’re off the hook if you aren’t one of these students who owes money. Many economists now believe that we may be approaching a crisis point at which the crushing debt burden faced by twenty and thirty somethings will forestall important life steps like buying a car, getting married, or owning a home. This last item in particular could be a serious blow for the still-shaky housing market. For Boomers looking to retire and supplement their savings with house equity, this is going to hurt: if the rising generation is too burdened by debt to pay top dollar for housing, retiring Boomers are going to get less of a windfall than they were hoping.Reducing college costs doesn’t just matter to young people; the inefficiency and high costs of our post-secondary ed system are a drag on the whole economy.
Higher Ed Bubble Hits Housing Market
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