Explosion in High-Priced Student Loans Sow Seeds of Trouble for U.S. Economic Growth

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"This is literally a new form of indenture ... something that every American parent should be scared of," said Barmak Nassirian, associate executive director of the American Association of Collegiate Registrars and Admissions Officers.



http://biz.yahoo.com/ap/070930/student_loans_the_spiral.html?.v=3

High-Priced Student Loans Spell Trouble
Sunday September 30, 2:14 pm ET
By Marcy Gordon, AP Business Writer
Explosion in High-Priced Student Loans Sow Seeds of Trouble for U.S. Economic Growth

Many in the next generation of workers will be so debt-burdened they will have to delay home purchases, limit vacations, even eat out less to pay loans off on time.

Kristin Cole, 30, who graduated from Michigan State University's law school and lives in Grand Rapids, Mich., owes $150,000 in private and government-backed student loans. Her monthly payment of $660, which consumes a quarter of her take-home pay, is scheduled to jump to $800 in a year or so, confronting her with stark financial choices.