What a Student Loan 'Bubble' Bursting Might Look Like

Re:What a Student Loan 'Bubble' Bursting Might Look Like by JumpCrisscross on Wednesday January 02, 2019 @09:15PM (#18812267)

> spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year

The cost isn't $100k. The minimum wage pays $15k per year [1]. Four years of lost wages equals $60,000. Add that to the tuition debt and you have a real cost of $160,000.

The surplus wage is apparently no more than $25k. Even here, we see a 15% return on investment. Not shoddy per se, and certainly a sustainable debt load.

[1] https://www.epi.org/publication/minimum-wage-workers-poverty...

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Re:What a Student Loan 'Bubble' Bursting Might Look Like by AstralStorm on Wednesday January 02, 2019 @09:47PM (#18812408)

Presuming you actually get that job. If you do not, you will be wholly unable to pay off this debt.

Even if you do, you cannot just set all 40k to pay for it, you have to live somewhere and probably have a family, not insignificant expenses. So real repayment rate might be as low as 5k/year... and this assumes you keep in good health, do not get laid off etc. This is at best a 10 year debt for your typical middle class.

And where do you get a house here on top?

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