Student Loan Bubble Pushes Toward $1.3 Trillion
As outstanding student loans approach $1.3 Trillion, the US Federal Government has increased it’s ownership stake to nearly $900 Billion of the loans. Student debt now comprises 45% of all assets owned by the US Federal Government. (See Not Federal Reserve)
In 2013, the US Federal Government collected nearly $51 Billion in revenue off of the loans to America’s youth. That number represented 2% of the years’ annual revenue receipts.
With that kind of easy money, we can see why the government has done nothing in the way of curbing the sky rocketing cost of tuition. In fact, sounds like there is much more incentive ensuring the costs of college continue to increase at the current double digit rates.
With labor force participation rates plummeting to over 93,000,000 out of the workforce…
And with nearly 1 and 3 borrowers in default or 1 month behind in payments. We wonder how much more steam this government fueled bubble has…