One in five U.S. households currently includes at least one resident carrying student debt, and the amount of outstanding student debt in the nation now totals almost one trillion U.S. dollars, experts said on Tuesday. Some analysts fear that the situation could be the start of a new subprime crisis.
Sharon Sakson of New Jersey is an example of a person encumbered by student debt. She finished her graduate degree in 2005, and then had to begin repayments on her $40,000 student loan. Sakson had expected to find work immediately after graduating, but she couldn’t find work until 2009. She was forced to declare personal bankruptcy, and now her home is in the process of foreclosure.