Yesterday, The Association has discussed in its BLOG, the impossible task for selected College graduates in paying their student loans because of lower return on their investment.

Therefore, the Association is not surprised when CNBC has reported in its September 22, 2018 article.  The signs of failures are all over the map.  It is just a matter of time, either a broad loans bailed-out scenario (loans moratorium) will happen or the Adam Smith’s invisible hand will make the correction.  If the market make the corrections, the consequences will be more painful.  It seems that more and more people, who got into the deep trap of their student loans take it into the extreme level, in that, they do not even care to pay their debts anymore.

They just give up in paying, even trying to convince themselves mentally that they do not have any loans.  This level of frustration occurs because their loans are ballooning far beyond all their combined wealth.  It is truly sad situation if a country fail miserably to pursuit of its citizens happiness as it has been stated in the second paragraph of the Declaration of Independence.  There are 8 million people who are defaulting their loans–that means 2.45% of the US total population in 2018 cannot pay their student loans at due date.  That is the same way to say that 8 millions graduates potentially will be impossible to pay their student debts, ever.

Reading the article closely, one may notice two important facts (1). Some students have attended the for-profit schools where employers may not in favor to employ graduates from these schools and (2). Most of them major in soft science (Example, humanities majors).  The reason is obvious–lower ROI (Return on Investment) as discussed before.