The deficit, the debt ALL OF IT, are related to loss of the job making machine,,, NEXT: Moody's-Student Loans-The Next Financial Bubble To Burst

Record borrowing by college students who are graduating without jobs could lead to major problems in the nation’s economy, according to a recent report by Moody’s Analytics.

“The long-run outlook for student lending and borrowers remains worrisome,” concluded the report, which came out in July.

“Unlike other segments of the consumer credit economy, student loans have not demonstrated much improvement in performance despite some improvement in the broader economy. … [T]here is increasing concern that many students may be getting their loans for the wrong reasons, or that borrowers — and lenders — have unrealistic

If we do NOT identify the right moves to enhance employment, FIX Free Trade to be FAIR to all workers, and remove the govt burden from those who create employment to the maximum extent possible, there WILL BE INEVITABLY, people in the streets.

in addition to college enrollment tripling over the past four decades, “demand [for student loans] is driven by the cost of education, which has grown at an extraordinary rate over the past three decades.” Based on Consumer Price Index data, the cost of tuition and fees has more than doubled since 2000, and has outpaced inflation across all goods, health care, housing and energy.

The student loan debt load now outpaces credit card debt,

“Fears of a bubble in educational spending are not without merit,” the Moody’s report said.

For-profit schools, which have much lower graduation rates than traditional colleges, have also grown rapidly.

Youth unemployment among those under the age of 24 has been much higher than the rest of the workforce — creating an even more pessimistic outlook for student loan repayment. In the U.S., it was over 15 percent for the first quarter of 2011, and is similarly problematic around the world.

The 2008 financial crisis was brought about by a few incremental points in unemployment, which cascaded to a few incremental points in late mortgage payments.

If student debt outpaces credit card debt in the USA, what is lurking out there as a result of the evisceration of the American job making machine.