Student loan nightmare. Man finds out his student loan balance is 200k after he graduates

[lonewolf674]

21. Thank you

Although I personally believe media outlets choose to publish these kind of anecdotes because they know most people won't dig deeper into the issue, just as the entire mainstream media tried dismissing the cause of the mortgage crisis on profligate borrowers, and some outlets still do. As you say, this is a problem issue. With $1.8 trillion in outstanding student loan debt, much of it sliced and diced into CDOs, like residential mortgages were, and then sold to institutional investors, I've seen estimates ranging between 9%-25% of borrowers are either in forbearance or default. And whichever estimate is chosen exceeds the similar rate for other types of debt such as credit cards, mortgages, auto loans, etc. Further, home builders and auto companies have admitted the sales of their respective products to the 40 and under demographic are in the toilet because of student loans. With high interest rates and the inability to discharge this debt through bankruptcy, those who are able to make their monthly payments are seeing a substantial part of their incomes eaten up by debt service. It's only a matter of time before this snowballs beyond those two industries and starts affecting other sectors of the US economy at large. That's if this particular bubble doesn't implode before then.