The Student Debt Crisis Is Exploding

Nothing Less Than a Student Debt Jubilee Will Do

The level of student loan debt in the United States has risen to $1.5 trillion, and defaults are at more than 40% of debtors and rising. Student loan debt has grown to overwhelm all other categories of non-housing consumer debt in this nation.

Underneath this crisis are rising tuition costs, a predatory student loan industry and an absence of consumer protections for students. Student debt is the only debt that can’t be removed through bankruptcy.

Governor Cuomo recently signed a new law that is supposed to help with the cost of higher education, and Senator Sanders introduced similar legislation at the federal level, but these are not real solutions to the crisis.

Alan Collinge, the founder of Student Loan Justice, says that these efforts will not relieve current students of debt, nor will they protect future students from acquiring debt. He anticipates that this crisis will explode within the next 12 to 18 months. Nothing short of a student debt jubilee will work. We discussed this issue in depth on Clearing The FOG…. continue reading

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