After the housing crisis in 2008, you have to ask yourselves 'Is Student Debt Our Next Bubble?' Student debt used to be considered "good debt" because it was for a good cause, but now the amount that students have to borrow is getting out of control.
Almost every state has a substantial number of college graduates in debt, especially in the northeast. The total number of students borrowing money is calculated to be around 37 million people. Some graduate with over $30,000 in debt and as interest builds, it could grow to even more.
The worst part about student loans is that it really can begin to run one's life. People end up still paying off loans even when they've entered their forties.
Why This Trend Is Growing
- Student Loan Refinancing
- Fintech companies that offer student loan refinancing and consolidation solutions are disrupting the traditional banking industry, providing more affordable alternatives for borrowers.
- Income Share Agreements
- Income share agreements (ISAs) are becoming a popular alternative to traditional student loans, allowing students to pay for their education by pledging a percentage of their future income for a certain amount of time.
- Free Education Programs
- Free education programs are disrupting the traditional higher education industry, providing alternative routes for students to learn and gain career skills without incurring massive student loan debt.
Industries Being Reshaped
- Education
- The education industry can leverage innovative technologies and alternative financing models to address the student loan debt crisis and make higher education more accessible and affordable.
- Fintech
- Fintech companies can disrupt the traditional banking industry by offering more affordable and flexible student loan refinancing and consolidation solutions.
- Career Services
- Career services companies can disrupt the traditional higher education ecosystem by providing alternative routes for students to learn and gain career skills, such as apprenticeship programs, bootcamps, and vocational schools.
