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DR. MARK W. HENDRICKSON: THE STUDENT LOAN PROBLEM |
You may have seen the recent story about the 41-year-old doctor who graduated from medical school in 2003 with student-loan indebtedness of $250,000 that has since swelled to more than $555,000. She is now scheduled to pay $990 per month until she is 70 years old. Ouch!
This is an extreme example of a widespread problem. Only 40 percent of the $730 billion of outstanding student loans are actively being repaid. This isn’t healthy for financial institutions and it isn’t healthy for many young Americans. Just as was the case with the ongoing mortgage fiasco, there is plenty of blame to go around for this sorry state of affairs. Still it is significant that almost all student loans are taken out by Americans too young to know what it takes to pay their bills and make a living on their own.
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