Tags: Levin | student | loan | debt

Credit.com's Levin: Skyrocketing Student Loan Debt Threatens Entire Economy

By Michael Kling   |   Monday, 16 Dec 2013 07:26 AM

Student debt is out of control and threatens the entire economy, and politicians ignore the looming crisis at their own peril, says consumer protection advocate Adam Levin in an article for the Huffington Post.

They risk the wrath of a growing block of discontented voters who name student loan debt as a top concern, says Levin, founder and co-chair of Credit.com and Identity Theft 911.
Surveys indicate that young adults agree that student debt is a serious problem.

"The average debt load for someone who graduated in 2012 was a staggering $29,400 - but the unemployment rate in that age bracket was 11.6 percent in November," states Levin, a former director of the New Jersey Division of Consumer Affairs.

Editor’s Note:
Retired Americans Slammed by Obama’s Redistribution Plans

Many recent graduates are burdened by debt loads close to their annual salary. And they can vote, he says, noting that 68 percent of 18 to 29 year olds are registered to vote.

"Millennials know that it's increasingly hard to do as well as their own parents, if not better, and the path they're all trying to follow to achieve that goal — a college education — is getting much more expensive."

Who do they blame? Thirty percent blame the federal government, 42 percent blame higher education institutions and 8 percent blame state government.

"If you thought Social Security was the third rail of politics in the '80s and '90s, just wait until the next time Congress jerks around and dangles sky-high student loan interest rates in front of all those un- and underemployed millennials trying to pay off loans the size of the Greatest Generation's first mortgages."

Congress must take their concerns seriously because the entire economy will be in trouble as millenials find themselves unable to finance homes, cars and other large purchases that represent the backbone of our consumer-based economy.

Students, he argues, should be able to refinance loans and even discharge them in bankruptcy, and regulators must crack down on abuses of colleges and non-bank student loan servicers.

Skyrocketing student debt does indeed endanger the economy, agrees former Virginia secretary of education Wade Gilley in a guest column for the Richmond Times-Dispatch.

"America has faced several crises recently, but the greatest yet to come could be just around the corner. This will be the financial crisis of our colleges and universities, which will shake the nation."

Outstanding student debt exceeds $1 trillion and is growing fast, Gilley notes. At its current pace, student debt will be half of all consumer debt in the nation by 2020.

Editor’s Note: Retired Americans Slammed by Obama’s Redistribution Plans

Related Stories:

© 2015 Newsmax Finance. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved