When student loans default the effects are far reaching and painful for everyone. An economy in which even the most highly educated are jobless and impoverished reveals deep flaws in both practice and mindset. Things have to change if true financial security is to be found everywhere, and unfortunately we have a long way to go.
Currently in the American economical system, the minimum requirement for most mid-pay jobs is a college degree. Those who don’t have a degree are stuck with manual labor. Professionals need education beyond that. Everyone knows this. What is less apparent is the cost. Most college students graduating are in dept on a scale of YEARS OF PAY. Thirty or forty thousand dollars easy, a full 12 months of work (if they didn’t have to live somewhere or eat anything, let alone taxes) before they can even break even! College students are shackled from the beginning, walking with manacles of dept to pull their spending down and funnel their money away from them to go to a system where it can be recycled and lent to another school to pull down more students in the process.
It is worse for professional students. Although they make more usually, jobs for lawyers or doctors are actually suffering as well now, and many are struggling to find anything to pay back the hundreds of thousands they owe. It is decades before they can dig free and actually save money to retire, let alone spend a cent on anything fun!
Since now all the high spenders are suffocated, no air available and no spare dollars to spend, debts. don’t get paid (putting a burden on society and lenders) and less dollars are being spent on anything fun. This shuts down retail and manufacturing and basically reveals a system choking itself, a great educational system indeed.