A few months ago, my husband's friend predicted that the next financial bubble to burst is going to be the student loan bubble. And I have to say that sadly I agree with him. I've always been taught that an education is the most important thing, that student loan debt is good debt: unlike buying a Porsche or a new pair of Jimmy Choo heels.
Here's the sticking point though: The kind of high-paying job nessesary to be able to afford said car and shoes (or even a run-down two bedroom shack) generally requires a college degree. And these days college educations don't run cheap either. My friend Melanie just started her first year of vet school at the University of Minnesota. She's going to graduate with $200,000 in student loan debt, probably more when you consider tuition hikes. Melanie will be paying off her student loans for the rest of her life.
When you combine the amount of student loan debt necessary to get a bachelor's degree (and I'm not talking ivy league univeristy degrees) with the high unemployment rate and the horrible economy, it's only a matter of time before something has to give. What's even worse, according to an article I found on the web, student loan debt can't easily be erased by filing for bankruptcy. To me it seems kind of ridiculous that someone who spends years running up excessive credit card debt because of poorly-made choices can get bankruptcy relief, but a college student, who incurs debt getting an education, can't.
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