“The US Department of Education has become the Countrywide of student lending. After a lending binge started in 2009, it now holds a massive $452 billion portfolio of student loan receivables, according to Federal Reserve data. This so-called ‘asset’ will become a liability by next year. Thanks to the punk job market, a huge percentage of these loans will go bad or have to be restructured. When that happens, Congress will have to appropriate money to make up for the loan-payment shortfall. What was quietly off budget will soon make a big splash on the federal budget.”
http://dailyreckoning.com/snap-crackle-pop-goes-the-student-loan-bubble/
Related posts:
Surveillance State? Washington Post Explains It ... Not!
Justin Raimondo: The Prisoner
World learns to manage without the US
Jamie Dimon Knows What You Don't Need to Know About U.S. Default
Glenn Greenwald: The Right's brittle heroes
Like Ted Cruz, Canadians had nothing against the United States, until now
U.S. Government vs. DEFCAD 3D Printable Gun: You Can’t Fix Stupid
Smoking Gun Memo Changes Context of Middle East
Dictator for Life: The Rise of the American Imperial President
The Blunt Truth about The Trayvon Martin Case
The U.S. Will Regret Intervention in Syria
Bill Bonner: Papal Fallibility
As Predicted, Third Way Surges to Fore in Middle East
Which Shade of Lipstick Looks Best on a Pig?
Catalonia Shows the Danger of Disarming Civilians