Americans Now In More Debt With Student Loans Than Credit Cards

Monday, August 09, 2010 , , 5 Comments

At least when you are in over your head for a big screen TV and a Hummer you can say you're showing off and content surrounded by stuff, even if it's stuff you can't afford.

The problem with an education is that A) it won't do you much good right about now and B) unless you managed to get in at one of the rare schools where professors actually care about their jobs, odds are you popped out of college just as stupid as you were when you went in.

The education scam is sort of like the Big Pharma scam: doctors prescribe medication not because they feel it is the best solution for your ailments but because they receive tons of money from drug companies to pimp out their (potential) toxic products. Shock and awe, you say, isn't that why we have the FDA to keep tabs on all of that? Suuuuure. If you believe that I also have a bridge to sell you but want you to take this handful of red pills before you do.

Point being, your little lame liberal arts degree isn't worth the paper it's printed on if it means a lifetime of debt and little to show for it. America is learning that one the hard way.

WSJ's Real Time Economics:

Consumers now owe more on their student loans than their credit cards.

Americans owe some $826.5 billion in revolving credit, according to June 2010 figures from the Federal Reserve. (Most of revolving credit is credit-card debt.) Student loans outstanding today — both federal and private — total some $829.785 billion, according to Mark Kantrowitz, publisher of and

“The growth in education debt outstanding is like cooking a lobster,” Mr. Kantrowitz says. “The increase in total student debt occurs slowly but steadily, so by the time you notice that the water is boiling, you’re already cooked.”

By his math, there is $605.6 billion in federal student loans outstanding and $167.8 billion in private student loans outstanding. He estimates that $300 billion in federal student loan debts have been incurred in the last four years.

Expect that number to climb as more Americans dedicate themselves to the yoke of debt for longer stints in higher education as an alternative to having to face the reality of an awful job market. Will this make them more marketable when the downturn eases? Doubtful, you can't teach common sense out of a text book. Ingenuity, cleverness and talent are all sadly absent from college curricula and for good reason - Americans raised on crap public school wouldn't know what to do with such things.

What a joke. Like I said, at least with a big screen TV you get some sort of comfort out of that yoke chafing your neck. Even if it does just perpetuate your stupidity... hey, maybe educational debt and personal debt ARE pretty much the same thing!

Debt is the highest form of slavery after actually strapping you to the plough and forcing you to drag it: until we realize that, there's no hopping off this treadmill.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


elf2006real said...

It's shit simple.

Don't back it with the taxpayers $$.

When our govt gets into anything it becomes a racket.

elf2006real said...

Then they wreck it as a business or whatever function it's supposed to perform.

Then they take it over, and stick the tax serfs with the Bill.

Hal (GT) said...

It's just a matter of time before the gov bails out this market too.

Jill said...

The problem is that employers have all fallen for the mistaken belief that a degree (ANY degree) count more than experience or actual SKILLS. I've held two jobs since getting my degree. One was in politics and my current job is in education. My degree? Accounting. I haven't used my accounting training in either job - but all employers see is the piece of paper. Screwy!!!


Excellent point and you are totally right. If employers are looking for a degree, qualified individuals can never get an interview and meanwhile this guy with a piece of paper gets the job simply because he was able to get through four years of school with the student debt to prove it. Who cares if he is actually good at the job or possesses any essential skills such as communication, as long as he has a degree who cares!

It's silly.