Re: P#433

College Loan Bubble

It is predicted that the next bubble to burst will be college loans. Apparently, the crisis isn’t coming quickly enough so now the IRS will step up collections by docking Social Security benefits. We are talking about 2.2 million debtors.

What strikes me is that from the time a student loan is taken until one draws Social Security for most people is their entire working life. Those are the years that payment of the loans would be less painful. They are also the years that collection would be relatively easy as these people pay taxes and are “visible”.

There’s plenty of blame to go around. Student loans are never written off or forgiven. And they are awarded easily to what could be called “subprime” borrowers in many cases. They dog you forever. Many of the Senior’s debts for student loans are the result of co-signing for their children. Co-signing should be taken seriously. With the loans controlled entirely by the government, college expenses and curriculum are also controlled.

Now, the government is doing what it always does, take the easy road by letting the loans slide for years, and now taking social Security payments to repay them.

The college education system needs to be studied for results and for return on investment. And the public needs to consider the long term impact to their budgets. College is not the answer for everyone, regardless of the hype. And it may cost you your retirement down the road.
   
Merideth White
Englewood, FL

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