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Another disconnected from reality subject is of course the cost of a college education and the commensurate debt accrued by the average student in its attainment.  The Department of Education recently noted that 43% of students are in default, this despite a 5% unemployment rate, go figure.  This works out to about 9,500,000 defaulting students with an average debt load of $54,500 according to the paper.  Interestingly an economist Carlo Salerno referenced in the piece noted that student loans are the modern answer to real estate’s infamous liar loans because the government imposes virtually no credit checks on borrowers, requires no cosigners and doesn’t screen people for their preparedness for college-level course work.  At least the students don’t have to lie, too bad they end up with a lengthy period of indentured servitude compliments of the 2005 Bankruptcy and Consumer Protection Act as it forbade the discharging of student loans in bankruptcy, almost without exception.

This is Caleb Lawrence Registered Investment Adviser Inc. Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.

You can catch me on the radio at noon each business day as well on California’s central coast.  KPIG 107.5 FM in the Monterey Bay or KPYG 94.9 FM in San Luis Obispo.

Advisory services offered through Caleb Lawrence Registered Investment Adviser Inc.

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