<p>Seems like this has been discussed on CC for quite awhile…</p>
<p>[High</a> Student Debt Poses Risk To Growth, Federal Reserve Says](<a href=“HuffPost - Breaking News, U.S. and World News | HuffPost”>High Student Debt Poses Risk To Growth, Federal Reserve Says | HuffPost Impact)</p>
<p>I’m seeing increasing numbers of inquiries on message boards from people desperate about loans that they or a person they care about owe that just aren’t going to be paid off. I just read one from a young couple, where an elementary school teacher is owing over $100K. With her salary, the payments over 25 years are even stifling and not doable. Interest only is even a hefty piece. They are a life time sentence unless they strike it rich.</p>
<p>This reminds me of the mortgage mess. 1/3rd have mortgages, 1/3rd own their home without mortgages, 1/3rd rent. We have a minority that have mortgage problems but it’s a vocal minority. Still, there have been a series of bailout attempts.</p>
<p>About 1/3rd get degrees, right? And some number of those with degrees have big debt problems but I think that the vast majority have manageable debt loads or no debt at all. Do we bail out those with crazy amounts of debt?</p>
<p>I think that we have some level of moral hazard in both areas. Already we’re seeing bubbling housing prices in some parts of the country.</p>