I know quite a few millennials that have a LOT of college (inc. post graduate) debt (like $100 - 200K). To make it worse, there aren’t as many well paying jobs in their fields as there used to be so they’re underemployed and not really able to save much money.
They have basically given up on ever paying it back, so they’re just going to pay interest for 20 years until they can default, then take the tax hit that will occur then.
I hope they send a note of thanks to the U.S. taxpayers.
I am of the belief the reason college loans got so far out of hand was because they took the risk from the colleges.
They have no incentive to make sure that the borrower can ever pay the money back. Also there is no incentive to keep cost under control.
Student loans should not be guaranteed by the government. Student loans should be able to be cleared in bankruptcy.
Let the free market work it self out.