While I have found varying information regarding that exact statistics of student debt currently in the US, there appears to be well over a trillion dollars in outstanding loans and student debt. Many sources state this is the second largest debt, behind housing, which is taking graduates around 20 years to pay off.
I am interested in how defaults on these federal loans will impact the United States stock market. I linked a recent article which discuss an individual who has nearly a million dollars in debt. This individual only pays the interest rates every month while the debt continues to grow. This individual is an orthodontist, obviously a high paying profession, who has no motivation to pay these loans. Instead only pays the monthly interest rates to please the government.
How will defaults on student loans impact the United States markets? How will individuals who use loans to become lower paying professions, not doctors or orthodontist but rather teachers or other professions(is there any hope for lesser payed college graduates to repay these ever growing loans), who default and have no chance of repaying these loans impact the markets. Could a mass default send markets into another 2008 crash.
Just curios about this since we are currently in a large bull market and it appears that all of this debt is overlooked. I am rather new to the field and any answers are appreciated.
http://www.businessinsider.com/how-you-get-to-1-million-in-student-debt-2017-5
Submitted June 09, 2018 at 12:36AM by foremt16 https://ift.tt/2sHW506
