sovereign-investor.com / By Evaldo Albuquerque / October 23, 2012
There’s no question we have another bubble in student loan debt, thanks to government policies. Take a look at the chart below. It shows that over the last 10 years, tuition costs have outpaced income growth.
No wonder almost no one can afford tuition these days. What’s the government’s plan to fix the problem?
Well, the government wants to lower student loan debt through the income-based repayment plan (IBR). It currently allows college graduates to spend just 15% of non-discretionary income on student loan repayments with complete loan forgiveness after 25 years.
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