With the rapid rise in college tuition and an ever more competitive job market, student loan debt has ballooned to nearly $1 trillion. These loans, however, are not loans in the traditional sense. It is almost impossible to refinance them, and unlike a typical loan, you cannot shed this debt through bankruptcy. Many students emerge from college laden with debt and unable to find work that pays enough to keep up with repayment. This debt will follow them around for years to come and many will become delinquent. In fact, we are starting to see student loan debt become a problem for senior citizens. Some may argue that the problem is that in an economy where job growth is slow, tuition should be more affordable. In fact, tuition increases have far outpaced inflation. Having a good education is essential if you want to get ahead. But society has to find a way to help students graduate without crushing debt.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).