Spoiler alert: You, me and every other taxpayer will get stuck with the $1.5 Trillion in student loans.
And the default rate is soaring.
Put this in perspective: The estimated costs of the US government’s involvement in the War in Iraq is $1.3 Trillion.
The bottom line is students (and former students) in America owe more money to the Federal Government than the totalvalue of every tank, every bullet, every aircraft carrier, and every acre of land in our national parks.
To add insult to their snowflake injuries, student debts cannot be forgiveneven in bankruptcy.
Thanks to a law passed by Bill Clinton in 1998, students, with loans, have become indentured servants.
And so are we.
Unfortunately, these kids aren’t making decent wages to cover their debts. And to make things easier, the wise guys in DC allow the debts to go into “forbearance.” Which basically means the payments can be delayed until a later date.
Tell the kids they don’t have to pay (and of course they won’t) and let the interest keep piling up.
It’s a familiar story called “kicking the can down the road.”
The irony is, this mountain of debt (bonds) is the #1 asset on the balance sheet of the US government. It’s equal to 30% of the total assets outstanding.
My question is: How can you consider something an asset when the majority of that asset is in default forbearance?
Are you starting to get the picture about why the bond market bubble is ready to explode?
Maybe it’s time kids start to consider investing in themselves instead of college.