WHAT STUDENT DEBTS IS DOING TO THE ECONOMY. Two-thirds of students take out loans to pay for college, and their combined debt could have a broad impact on the housing market and overall economy, according to a new analysis from the Authorities This is the case because people are taking out more loans than they used to, but their ability to pay them off hasn't kept pace. Professionals note that banks have written off billions of dollars and approximately 850,000 former students have defaulted on loans just in the first few months of 2013. People used to take out loans, go to school, get jobs and pay off their debt in a reasonable amount of time. But rising college costs paired with a struggling economy and high unemployment among young people has made that difficult. Latinos and African-Americans, particularly, are more likely to take out private student loans instead of federal loans than in the past. That can be problematic because private loans often carry higher interest rates and repayment plans are less flexible. Many people now graduate and return home to live with their parents -- sometimes without a job -- which means they aren't buying their own homes. Home ownership rates among young people are at some of the lowest points in decades. Minorities, who are more likely to be burdened with student debt, are expected to represent more than 70 percent of net household growth between 2010 and 2020. So going to school too is like a risk in business, especially when your tution fees were paid from LOAN!!!! Let ponder on this... Prof. Yemitan seyi