Return of the debt crisis? Yale sues former students

Bloomberg is reporting that Yale University joined other institutions of higher learning going after former students who default on loans.

But Yale’s not the only school that’s struggling with debt. Statistics show that schools across the state, including nursing, community college and vocationals have people defaulting on debts.

According to the U.S. Department of Education, there were 2,717 Connecticut residents who defaulted on federal student loans in 2010, the most recently published statistics.

When you get down to the school level, what’s particularly alarming is the numbers of defaults appearing as early as 2009, the only statistics available for schools.

Bloomberg has a first-rate story on the student loan issue, but here in the Mines, we can’t help but be concerned about the bigger problem of debt in America and what direction it’s pushing the economy.

Later this month, the Fed Bank of New York releases its quarterly report on household debt and that should provide a better picture of how close we are to a “double-dip debt crisis.”


Rob Varnon