America’s Youth Aren’t Fine, Mr. President

During the last several months, the political classes have come to the realization that the level of student debt in the United States is reaching crisis level. Many have suggested that the burst of the student loan bubble will be more far-reaching and more damaging than the housing bubble that precipitated the Great Recession. This week, the Huffington Post linked to a new study from the Federal Reserve Bank of New York that showcased just how deep the student loan problem reaches:

  • Of the 241 million people in the United States who have a credit report with Equifax, approximately 15.4% — or 37 million — hold outstanding student loan debt.
  • The average outstanding student loan balance per borrower is $23,300. About one-quarter of borrowers owe more than $28,000; about 10% of borrowers owe more than $54,000. The proportion of borrowers who owe more than $100,000 is 3.1%, and 0.45% of borrowers, or 167,000 people, owe more than $200,000.
  • Borrowers between the ages of thirty and thirty-nine have the highest average outstanding student loan balances, at $28,500, followed by borrowers between the ages of forty and forty-nine, whose average outstanding balance is $26,000.
  • About 27% of the borrowers have past due balances, while the adjusted proportion of outstanding student loan balances that are delinquent equals 21%.

Many have put the blame on ballooning costs of public and private universities across the country. Christian Science Monitor reported this week that “between 1999 and 2009, tuition at public four-year colleges rose 73 percent on average, and tuition at private nonprofit colleges jumped 34 percent. In the same period, median family income fell by about 7 percent.”

0
Shares
Google+ Print

America’s Youth Aren’t Fine, Mr. President

Must-Reads from Magazine

Trump Tries a New Tack on the Peace Process

The definition of sanity.

President Donald Trump’s address to the UN last week received considerable attention for what he actually said. No less interesting, however, is what he didn’t say. The speech contained zero mention of the Palestinians, zero mention of their conflict with Israel, and zero mention of the peace process Trump has been trying to revive.

14
Shares
Google+ Print

Trump is Pavlov and We Are The Dogs

Podcast: Trump starts a fight, but will he win it?

The first COMMENTARY podcast of the week finds us (me, Abe Greenwald, and Noah Rothman) discussing the weekend of knee-taking and Trump-tweeting about patriotism and the NFL and blah blah blah while North Korea threatens hydrogen bomb-testing and Puerto Rico reverts to a state of nature. And we enjoy the decline and fall of Valerie Plame. Give a listen.

9
Shares
Google+ Print

Donald Trump, Cultural Wrecking Ball

What is he winning exactly?

Conservative political analysts seem so wrapped up in the matter of whether or not Donald Trump can, no one has given much thought to whether he should.

26
Shares
Google+ Print

London Is Closed to Competition

Competition is a scary thing.

Soon after last summer’s U.K. vote to leave the European Union, London Mayor Sadiq Khan launched a publicity campaign to reassure investors that his city would remain a dynamic, global hub after Brexit. “London Is Open” was the slogan, and it was supposed to “show the world that London remains entrepreneurial, international and full of creativity and possibility.”

20
Shares
Google+ Print

The Case for Kurdistan

A boon to America, the region, and the world.

The Kurds have been a people without a state for centuries. Monday’s independence referendum in northern Iraq’s Kurdish zone is an important step toward rectifying this historic injustice, and I believe the U.S. is making a grave mistake by opposing the vote.

69
Shares
Google+ Print