Recently, those who work at ETFA noticed an increase in the articles concerning the student loan crisis. The many reasons given can be as varied as people offering their insights. However, one cannot escape the fact this debt is becoming critical. Therefore, ETFA will try to offer its own thoughts to the debate. We will discuss who and why this event is happening.
Who, despite what some people think this crisis is affecting students/parents from very... diverse backgrounds. Meaning this crisis is affecting students from all groups within society. Yes, certain minorities tend to have a higher percentage in default. However, the one unescapable fact that tends to be associated with these groups is the rate of unemployment or underemployment follows the rate of default.
Unemployment or underemployment is the main cause for the crisis. If these students had the jobs they expected to get when they graduated most would be able to pay their loans. Employment is the cure for this problem. Despite what analysts say in the media about the recovery the fact is many of the jobs that have been created do not match the income of the ones that were lost. Plus, there are more people with degrees than ever before. These factors are beyond the control of most people unless one starts their own business. Our next edition will cover what the student can do to avoid default.