Education

United Cash Loans 123 Says Student Loans May Represent Threat to US Economy if Left Unchecked

10th Feb `14, 05:50 AM in Education

While delinquencies for credit card, car and mortgage debt have all been in decline since reaching a peak…

BDMS
Guest Contributor
 

While delinquencies for credit card, car and mortgage debt have all been in decline since reaching a peak during the financial crisis, student loan delinquencies remain on the rise. As this younger generation struggles under the burden of their outstanding student loan debt, the economy will be impacted by this group’s inability to buy homes, cars and other purchases that can help the economy continue its recovery.

It is a concern that the central bank shares, as the New York Federal Reserve has moved to measure the size of the current student loan load. While the Federal Reserve is trying to determine the size of the loan load, other questions should be raised, including the reason for the continued increase in outstanding student loan debt.

“It seems that a big part of the issue has to do with timing,” said a representative with United Cash Loans 123. “Many of these individuals that are struggling with their student debt graduated during a time when the economy was struggling through a recession, and job growth still has not risen all that much in the time since. Many graduates were not able to find the lucrative careers they studied for, and had to accept lesser-paying jobs to make ends meet.”

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