Skip to comments.Fed Policies Encourage Households to Take On More Federal Student Loans
Posted on 10/05/2012 3:12:18 PM PDT by whitedog57
Consumer credit in the U.S. rose more than forecast in August, propelled by a surge in borrowing for education and automobiles. The $18.12 billion rise, the most in three months, followed a revised $2.5 billion decrease in July, Federal Reserve figures showed today in Washington. The median forecast called for a $7.25 billion increase. The pickup in non-revolving borrowing, which includes student and automobile loans, was accompanied by the first gain in revolving credit in three months.
Consumers took advantage of declining interest rates to buy vehicles, while higher gasoline prices helped push up the value of their credit-card borrowing. At the same time, job gains may be giving households enough confidence to spend borrow and spend.
Student loans have been growing from the Federal government since 2009 and just took a huge spike upwards.
So, the Federal government is the biggest source of credit in the US and mostly for students. This is NOT a sustainable growth model for the economy. And mortgage debt outstanding continues to decline.
So, Federal student loans skyrocket while Federal mortgages (FHA, Fannie Mae and Freddie Mac) continue to decline. Talk about the Federal government picking winners and losers!
(Excerpt) Read more at confoundedinterest.wordpress.com ...
It’s less expensive for graduates with student loans to take out more loans and attend additional classes, than to pay them off, because they stop the interest while they are students. Perpetual students.
These loans are evil. Any debt that cannot be forgiven through bankruptcy is Godless. Shame on us all.
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