As Student Loans Hit All Time Record, One High School Valedictorian "Gets It"
This it NOT what you would expect from a traditional valedictorian speech. Hopefully people, especially young people, are starting to wake up to just how corrupt and broken at its core, the US educational system is. Alas, tangentially, as the following data from Stone McCarthy indicates, there is little danger that the revelations captured in this video are anywhere near widespread, courtesy of record after record rise in the next big bubble: student loan debt, which is nothing but even more voluntary indentured servitude in hopes that the latest piece of paper certifying one is "smart" will make one's resume more attractive to potential employers. Alas, if they only knew...
And from SMRA:
In this morning's Chart of the Day, we reexamine the rising trend of student loans outstanding. Back in late June, we highlighted the steady increase of student loans that has occurred since January 2009. In the most recent release of the Fed's Consumer Credit Outstanding report, student loans outstanding increased $15.66 billion on a non-seasonally adjusted basis in July, the largest month over month increase since January. In turn, nonrevolving credit outstanding (seasonally adjusted) rose a whopping $15.4 billion, the largest monthly increase since November 2001.
We attribute the overall rise in student loans to a number of factors. However, we suspect the major reason is a struggling labor market and bleak outlook for jobs. As the economy continues to generate a less than ideal number of jobs, more people are heading back to school to enhance their education in order to make themselves more marketable to potential employers. The unemployment rate for people aged between 20 to 24 years was 24.5% in August, up from 23.1% in July. The unemployment rate for this population range averaged 15% from 2002 through the end of 2007. However, as the labor market continued to struggle, the unemployment rate for persons between 20 and 24 years of age rose to 25.7% in November 2009 and has remained elevated over the past two years. Not to mention that the unemployment rate for the civilian labor force has been above 9% since May 2009. Additionally we suspect the increased cost of tuition is forcing students to take out larger loans in order to pay for rising education costs.