The Truth Behind the Student Loan Crisis Isn’t as Bad as You Think

Recently announced news has shown student loans in America have now topped $1 trillion, and a lawsuit showcases the dangers of attending ITT Educational Services, but a college degree is still wildly valuable.

Mar 15, 2014 at 1:00PM

With total outstanding student loans now topping $1 trillion, many have said it has now become a full-on crisis, but that may not be entirely true.

The rising costs of college need to be addressed by all parties, from educational institutions themselves to the Federal Government, and everyone in between. However, data has revealed the absolute importance of college, as those with college degrees in the recent Millenials generation can now expect to earn 50% more in annual salary versus those with some college or a two-year degree. This is a wide disparity compared to the Silents generation -- those born between 1925 and 1942  -- where a person with a college degree could expect to earn 15% more than someone without one.

In addition, the recent suit by the Consumer Financial Protection Bureau (CFPB) against ITT Educational Services highlights the need for students to be aware of both the true costs and benefits of the institutions they're attending, as it showcases some of the for-profit colleges are only seeking to enhance their bottom lines, and not the lives of students. 

In this segment of The Motley Fool's financials-focused show, Where the Money Is, banking analyst David Hanson is joined by Fool contributor Patrick Morris to discuss the student loan industry as a whole, plus the recent lawsuit announcement that sent ITT Educational Services stock tumbling and what it all could mean to investors and individuals everywhere.

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Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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