Could Student Loans be the Next Housing Bubble?

7 years 6 months 6 days ago Wednesday, August 17 2011 Aug 17, 2011 Wednesday, August 17, 2011 4:12:00 AM CDT August 17, 2011 in News
By: Christie Nicks
loading

COLUMBIA- It's such a vicious cycle- the job market is slow...which makes people want to go back to school to make themselves look more appealing to employers... but then tuition rates are also up, forcing more students to take out more loans in order to pay for their education. But with rising tuition rates, a soft job market and low graduation rates- Moody's Analytics, a credit rating firm, has a bleak forcast for whether students will actually be able to pay back their loans.

     So now the new fear... could student loans become the next housing crisis? Tuition increases have climbed steadily higher than housing increases when comparing the two. Moody's also reports that even during the housing bubble where real estate grew in cost, the tuition growth rate exceeded the real estate rate.

     An indication of this sort of student education bubble starting to form, is that student loan delinquencies (falling behind on loan payments) have increased... The only other deliquency rate that's higher than the student loan rate is from credit cards which is actually dropping.

 

More News

Grid
List
ST.LOUIS - Men transform into kings and represent their university and ancestors in an annual competition. Harris Stowe State... More >>
1 day ago Wednesday, February 20 2019 Feb 20, 2019 Wednesday, February 20, 2019 2:35:00 PM CST February 20, 2019 in News
HARRISBURG - An energy company is hoping to bring a wind farm to Boone County and wants to get to... More >>
1 day ago Wednesday, February 20 2019 Feb 20, 2019 Wednesday, February 20, 2019 2:33:00 PM CST February 20, 2019 in News
STURGEON –The city of Sturgeon put its police chief on unpaid administrative leave Tuesday, after firing and reinstating him. The... More >>
1 day ago Wednesday, February 20 2019 Feb 20, 2019 Wednesday, February 20, 2019 2:12:00 PM CST February 20, 2019 in News
CAMDEN COUNTY - The state fire marshal is investigating multiple potential cases of arson after officials found bales of hay... More >>
1 day ago Wednesday, February 20 2019 Feb 20, 2019 Wednesday, February 20, 2019 11:40:00 AM CST February 20, 2019 in News
JEFFERSON CITY - Mothers advocating for gun control rallied at the state Capitol Tuesday. The Missouri Chapter of Moms... More >>
1 day ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 11:04:00 PM CST February 19, 2019 in News
JEFFERSON CITY - A Missouri legislative committee is looking into a calculation error that could impact some people's taxes and... More >>
1 day ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 11:00:00 PM CST February 19, 2019 in News
COLUMBIA - The Columbia Police Department confirmed a death investigation near the 2500 block at Quail Drive. Sgt. Harlan... More >>
1 day ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 10:11:00 PM CST February 19, 2019 in News
COLUMBIA - This season's winter weather has caused cancellations, potential revenue loss and headaches for high school athletic departments. ... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 6:55:00 PM CST February 19, 2019 in News
COLUMBIA – Dayan Reynolds said he didn’t know his dad had a mission to convince people they aren't gay, until... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 6:26:00 PM CST February 19, 2019 in News
COLUMBIA - An official with Boone County Public Health and Human Services said it is still early in the investigation... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 5:16:00 PM CST February 19, 2019 in News
FINAL UPDATE: Snow, sleet, freezing rain will continue overnight and exit between 6-9am on Wednesday morning. Freezing drizzle is also... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 4:30:00 PM CST February 19, 2019 in Weather
COLUMBIA - Rep. Vicky Hartzler, R-Missouri, visited Boone Hospital Center on Tuesday to learn about its initiatives in fighting the... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 4:27:00 PM CST February 19, 2019 in News
COLUMBIA - Investigators are again asking for the public's help finding a man charged in a January murder. 60-year-old... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 3:33:00 PM CST February 19, 2019 in News
COLUMBIA - Job Point will receive a $1.1 million grant to assist with its YouthBuild Program. The money will... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 2:42:00 PM CST February 19, 2019 in News
COLUMBIA - A former Columbia business owner who served in World War II celebrated his 100th birthday on Tuesday, surprised... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 1:20:00 PM CST February 19, 2019 in News
COLUMBIA - Some school districts across mid-Missouri have already started adjusting their school year calendar because of the severe winter.... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 11:02:00 AM CST February 19, 2019 in News
MONITEAU - Deputies arrested a woman Friday after she allegedly tried to sneak methamphetamine into the Tipton Correctional Center. ... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 10:41:00 AM CST February 19, 2019 in News
JEFFERSON CITY - The Missouri chapter of Moms Demand Action for Gun Sense in America will bring more than four... More >>
2 days ago Tuesday, February 19 2019 Feb 19, 2019 Tuesday, February 19, 2019 5:52:00 AM CST February 19, 2019 in News
Columbia, MO
Broken Clouds 34°
10pm 34°
11pm 33°
12am 32°
1am 32°