Above The Law’s Elie Mystal says that the student loan market is heading for disaster, and is expected to get worse. Salaries and employment rates have dropped drastically and the average starting salary is only $27,000, down from $30,000 a couple of years ago. Outstanding student debt has climbed 25 percent since the start of the financial crisis in 2008 and more and more of those loans are not getting paid off on time. The rate of student loans that were more than 90 days past due rose from 10.6 percent to 11.2 percent, in the second quarter of 2011.
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The Student Loan Bubble: Only Stupid People Will Be Surprised When It Bursts