Two Scary US Debt Bubbles – Student Loans and Auto Loans

Update: Student Loans Default Risks Grow - WSJ

http://www.wsj.com/articles/about-7-million-americans-havent-paid-federal-student-loans-in-at-least-a-year-1440175645

“Nearly seven million Americans have gone at least a year without making a payment on their federal student loans, a staggering level of default that highlights how student debt continues to burden households despite an improving labor market.”

A fantastic frontpage story (Grad-School Loan Binge Fans Debt Worries) in the WSJ highlights the growing debt accumulation amongst students in graduate programs –

“The doubling of student debt since the recession, to $1.19 trillion, has stoked a national discussion over how to rein in college costs and debt and is becoming a major issue in the 2016 presidential race. Little noted in the outcry is the disproportionate role played by postgraduate borrowers, who now account for roughly 40% of all student debt but represent just 14% of students in higher education.”

Related:

Federal Aid’s Role in Driving Up Tuitions Gains Credence

http://www.wsj.com/articles/federal-aids-role-in-driving-up-tuitions-gains-credence-1438538582

Low-income students struggle to pay for college, even in a state that still provides help

http://www.pbs.org/newshour/updates/low-income-students-struggle-pay-college-even-state-still-provides-help/

Hedge fund bets against the student loan bubble
http://www.bloomberg.com/news/articles/2015-08-11/hedge-fund-seeing-college-bubble-bets-against-companies

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Auto loans soar past $1 trillion (joining student loans in trillion dollar-plus credit club)
http://www.wsj.com/articles/total-u-s-auto-lending-surpasses-1-trillion-for-first-time-1439478198
http://www.zerohedge.com/news/2015-07-21/presenting-americas-900-billion-auto-loan-bubble-6-charts