Educated Americans Have More Debt Woes
They 'thought they were immune' to the financial crisis
By Neal Colgrass, Newser Staff | Suggested by Guvner
Posted Oct 28, 2012 4:15 PM CDT
A rich man's C-note goes up in flames.   (Shutterstock)

(Newser) – Think highly educated Americans came out better in the 2008 financial crash? According to two new studies, those with college degrees actually took on more unmanageable debt than other Americans, reports Time. "People with college educations may have thought they were immune to any economic problems," says Sherman Hanna, who co-authored the research. "But when people stop believing things might go bad, that’s when they get in trouble."

Researchers drew the line of "unmanageable debt" at the point where monthly household debt payments equaled 40% of income. More than one in four Americans crossed that line in 2008, up from 17% in 1992—and highly educated people were more likely to be among them. What's more, 35% of renters were in that group compared to just 21% of homeowners, showing "that the financial crisis wasn’t all about housing speculation," says Hanna. "There was too much debt in all parts of the economy.”

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Showing 3 of 48 comments
Oct 30, 2012 4:26 AM CDT
Does this surprise anyone? Just because you are highly educated doesn't mean that common sense prevails. In fact I almost believe that one reduces the other. Just look at our Congress and current President! Enough said! Actually the last 3 presidents. Even Clinton left some debt. He may have balanced it one year. But the truth of the matter is they seem to think running in the red is just a given. I think they should be treated like any large corporate CEO. They should be graded. In this case the public should be the one who determines there longevity. Just like the term limits that should be in place for Congress. But do you think they are going to bite the hand that feeds them? Just like when they vote there own raises in. Public sentiment right now says they should all be thrown out on there rumps. Simply put most of Congress is just a part of a large fraternity and sorority group. They are nothing more than actors, putting on a show. There performance to date has been nothing less than despicable. We need more actual public representation. Because these highly educated people who think there "smarter" than the rest of us are failing miserably.
Oct 29, 2012 10:51 AM CDT
I have a few relatives with MBA's, not a lick of common sense.
Oct 29, 2012 10:16 AM CDT
Sounds about right PHD's, but NO COMMON SENSE! No household budgets , just spend and worry about debt later... Hey, is this about Obama , sure seems about right!