The figure is staggering. It was released by FICO, which surveys Americans’ debt position in order to issue their credit ratings.
Students are amassing debt as never before. Some students are taking out two loans. This figure has risen by 90% since 2005. The percentage of adult Americans with two ore more student loans is almost 12%. That is one in eight. In 2005, the percentage was 6.2%.
The average debt is almost $27,000. It 2005, this was about $17,000.
“The rich ruleth over the poor, and the borrower is servant to the lender.” (Proverbs 22:7)
Well said.
These loans will never be paid back in full by the person who borrowed the money.
At best, the borrower will go on the 'income-based repayment' plan and pay around 15% of their outstanding balance (with taxpayers picking up the rest)
Or the FED will inflate, and the debt will be repaid with debased currency. Keynes was wrong, again. Eventually, we're NOT all dead. Keynes lives on, and on, and on…
Yes, high inflation is the most politically expedient way to reduce debt if you are a politician.
No need to vote to raise taxes or cut benefits, just blame your favorite scapegoat when it's time for re-election.
IIRC, Brazil has managed to inflate away most of the sovereign debt it issued in the 1980s/1990s and its economy is doing very well, though too bad for all those foolish enough to buy their debt.