The Risk/Reward of Student Debt

The political posturing in regards to America's student loan debt (estimated at from $850 billion to upwards of $1 trillion) is escalating.  President Obama recently spent a week traveling from one college campus to the next, declaring his compassion for college students and his deep concern for the debt they had incurred funding their education. Obama, and a number of Republicans, are leery of a reset in the interest rate on many of these loans from 3.4% to 6.8% on July 1.  Whichever political party deemed responsible for a rise in the rate and a corresponding rise in the students' payments would surely lose some votes on Election Day. Images abound of these students at protests with signs around their necks showing the dollar amount of how much they owe in student debt.  Some of those striking numbers are in the tens or even hundreds of thousands of dollars. While the debate rages as to freezing interest rates at 3.4% and, if we do that, how to make up for the...(Read Full Article)