The next great American crisis

The following column from MIT’s newspaper compares the housing bubble’s burst with what may be soon to happen with the student loan situation. It makes sense: More and more and more kids are graduating with debt they can’t afford to pay. If those kids can’t find jobs, it’s easy to see how that plays out. Here’s a snippet from the story:

“Like mortgages, the financial product that played a large role in the more recent collapse, college loans are widespread. Approximately two thirds of all college students graduate with college loans, and in 2008, The Project on Student Debt estimates that 206,000 students graduated with debts of $40,000 or greater. And the situation is not improving; total student loan debt in the United States is increasing at a rate of about $2,853.88 every second.”

Read the whole thing.

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