The rapidly growing student debt bubble is so scary, it’s now worthy of its own mini horror film.
Student loans haunt more Americans than ever before. Earlier this month, a new report from the Federal Reserve Bank of New York showed the total amount of outstanding student loans among households reached $986 billion in the first quarter – a new record high.
The number of borrowers who have fallen behind on their student debt by at least 90 days now stands at 11.2 percent. Prior to the financial crisis, the average student delinquency rate averaged roughly 7 percent.
To help borrowers better understand the consequences of loans, the American Student Assistance financed a short film directed by Sundance award-winners that encourages young people to confront debt. It is called “The Red” and uses ominous red smoke to terrorize the borrower.
“It isn’t easy to get young people who feel panicked about their debts to do something about it,” said Sue Burton from ASA. “To connect meaningfully with them, we produced something very entertaining that acknowledges how frightening it can be, yet portrays their own power and offers a path out of the nightmare.”
Check it out below:
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