Student debt is a problem, and it’s only going to get worse as defaults shoot up and the millennial generation cut spending to repay their debts. Hedge fund manager James Rickards of Tangent Capital, discussing the US experience, even describes it as “the next subprime crisis” waiting to happen.
Here are some scary facts about the US situation: in 2013, total student debt hit $1trn – more than total US consumer debt (excluding mortgage debt). The average individual owes $24,000, but 11% had more than $50,000. This is at a time when US higher education costs have soared [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 4 week FREE trial to get instant access.