Student Loan Bubble Strains Colleges

An event people should have foreseen was the consequences of the mass amount of student loans and the subsequent student debts. With grants and scholarships being fewer and far between, many students are taking out loans.

If students attend college for two or four or even more years, they can incur a great deal of interest. If they decide to wait the six months before they have to pay and pay only the minimum payment, they will be in big trouble.

Yet, while the students suffer from debt, colleges suffer more.

Student Loan Bubble To Burst, Putting Colleges in Tight Spot

While the students are in debt, the colleges are even more debt. Some top colleges are in debt in the millions. This is not a good position for them to be, as the loans continue to rack up, for both students and schools.

It is just another big symptom of the overall disease of the economy. Reckless spending without any accountability. The economy will get much worse, before things get much better with educational institutions.

The price of a good education is something that has been debated, as many have questioned the worth of a degree, given the economy. With a number of experienced workers losing their jobs and being on the open job market, those businesses who are hiring are going with the experience workers, as opposed to the recent graduates.

It is a smart business decision, as they have to train graduates, but they don't have to train experienced workers.

In the end, if students cannot pay the debts, colleges suffer. Colleges suffer and those students that might be able to pay suffer worse.

It really does make you fear for the future, as the cycle of debt is going to swallow higher education, as the bubble bursts.