Some people in US are asking rather obliviously, why are the students protesting on Wall Street (and main streets)?
The above may provide some hint.
•Defaults. The portion of borrowers in default — more than nine months behind on payments — rose from 6.7% in 2007 to 8.8% in 2009, according to the most recent federal data.
That’s default against the Federal government loans. Money that directly eat into tax revenues and increases the debt.
…total loans outstanding will exceed $1 trillion for the first time this year. Americans now owe more on student loans than on credit cards, reports the Federal Reserve Bank of New York.
So, that is about $88 billion in default in 2009. Additional consequence on top of unemployment.