5:52 PM, Apr 8, 2015 • By GEOFFREY NORMAN
Kasia Klimasinska of Bloomberg reports that:
Student loans in February were worth more than half the value of outstanding Treasury debt with a maturity of 10 years or more.
That represents a lot of money. About $800 billion and according to Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut.
"If you were fairly confident that all those loans are going to be paid back, then it wouldn't be that big of an issue. But ... we've got double-digit delinquencies on student loans, and the problem only seems to be getting worse.”
And if that trend continues, the government will go from making:
about 14 cents on every dollar lent, according to the Congressional Budget Office.
To a situation where:
On subsidized student loans (the most basic kind), the government is forecast to start losing money as early as next year. The CBO already revised up its estimate of how much the loans will cost the government for 2016-2025 by 30 percent, citing higher estimates of the number of loans in default (which in turn would mean the government won't be able to collect on as many payments as initially thought).
3:23 PM, Jan 29, 2015 • By IKE BRANNON
New York governor Andrew Cuomo, not content with President Obama’s proposal to make junior colleges free, recently introduced his own plan for New York to essentially waive the first two years of student debt payments for college graduates living in the state.
2:02 PM, Jan 7, 2015 • By DANIEL HALPER
Know a college student interested in political philosophy, economic policy, or the study of war? Encourage them to apply to the Hertog Foundation's summer fellowships where they can learn from an outstanding faculty, including some names that will be familiar to WEEKLY STANDARD readers -- Bill Kristol, Yuval Levin, James W.
8:04 AM, Jun 24, 2014 • By DANIEL HALPER
Hillary Clinton will be getting $225,000 to speak at a university fundraiser later this year. Students at the same school, the University of Nevada, Las Vegas, have recently been outraged that the institution is raising tuition by a staggering 17 percent.
1:01 PM, Dec 16, 2013 • By JIM SWIFT
According to the University of Maryland student newspaper The Diamondback, the university’s student health insurance plan is considering requiring coverage of sex change operations.
12:55 PM, Jul 18, 2013 • By MARIA SANTOS
On Tuesday night, a small bipartisan group of senators met at the White House to discuss plans to fix the interest rates on student loans. The exact details of the plan are still being drafted, but a formal release is expected soon.
10:37 AM, Jul 2, 2013 • By DANIEL HALPER
Steve Hayes, with Mara Liasson and Charles Krauthammer, last night on Fox News:
1:05 PM, May 31, 2013 • By JERYL BIER
Reprising the "Don't Double My Rate" theme used during the 2012 presidential campaign, the White House is pushing a plan by President Obama this week to prevent interest rates on some student loans from doubling effective July 1. However, the savings for most borrowers is rather less significant than might appear at first glance. The White House uses the example of an incoming freshman, who they say will save $4,000 under the president's plan:
7:04 AM, May 20, 2013 • By GEOFFREY NORMAN
Student loan debt runs to about $30,000 per graduate of the class of 2013, as Phil Izzo writes in the Wall Street Journal. And the total amount of student loans outstanding runs to almost a trillion dollars: more than either credit card balances or automobile loans. More than any form of consumer debt other than home mortgages.
Student loan debt is $956 billion, with an 11 percent rate of delinquency. 4:05 PM, Nov 27, 2012 • By DANIEL HALPER
Household debt jumped once again to $2.7 trillion, according to the New York Fed. "[T]he Federal Reserve Bank of New York announced that in the third quarter, non-real estate household debt jumped 2.3 percent to $2.7 trillion," reports the fed. "The increase was due to a boost in student loans ($42 billion), auto loans ($18 billion) and credit card balances ($2 billion)."
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