The student loan debt crisis is not improving. Many former students cannot afford rent and other basic monthly expenses. Student loan debt has surpassed credit card debt, and many graduates are delaying marriage. Student loans cannot be discharged in bankruptcy. https://medium.com/@EugeneSchneur/5-interesting-facts-about-student-loans-334256caf00e

1. 5 Interesting Facts About Student Loans
The student loan debt crisis is not improving. Many former
students cannot afford rent and other basic monthly expenses.
Student loan debt has surpassed credit card debt, and many
graduates are delaying marriage. Student loans cannot be
discharged in bankruptcy.
The Average Debt Amount is Increasing
The average borrower leaves college owing more than $30,000.
The amount is steadily increasing. A decade ago, the average debt
was 70 percent lower. Debt in excess of $100,000 accounts for a
third of the total outstanding student loans. Five percent of
borrowers owe more than $100,000.
Default Rates are Increasing
In 2016, loan delinquency rates reached 11.2 percent. The
delinquency rate is higher than any other category of household
debt. After college, many students cannot afford their monthly
student loan payments. Former students are prioritizing their
rent, grocery bills and utilities. The recession ended eight years
ago, but thousands of people are still defaulting on their student
loans. Students from low-income areas have the highest default
rates.
Many Borrowers Cannot Make Payments
More than 10 percent of borrowers are in the 90 days late
category, and forty percent of borrowers fall behind on payments
within five years of repayment. The late payments are preventing
millions of graduates from purchasing homes. Half of Americans
make less than $30,000 a year. Many young adults have a high
debt-to-income ratio, and the large balances are contributing to
the national debt.

2. The Student Loan Bubble Can Burst
The student loan bubble will affect every American. If the
majority of former students default, the burden of repayment will
fall on the taxpayers. The government might cut social safety net
programs. When the student loan bubble bursts, the collapse may
be worse than the 2008 financial crisis. There will be thousands of
job losses in the real estate industry and the automotive industry.
Competition for Jobs
Graduates of for-profit colleges have a disproportionately high
amount of student loan debt. Many entry-level jobs require a
master’s degree, and some white-collar jobs do not pay a living
wage. More than 25 percent of new graduates cannot afford to rent
an apartment after graduation.
The IRS can seize tax refunds and garnish wages. Borrowers can
utilize the student loan forgiveness program, but the borrower
must pay taxes on the amount forgiven. The tax bill will
accumulate interest, and many former students will find
themselves owing the IRS tens of thousands of dollars.