Detroit collapse

Michigan school district that says it can't pay teachers to remain closed until further notice

Click on Detroit,

13 May, 2013

BUENA VISTA TOWNSHIP, Mich. -

A shuttered Michigan school district that says it can't afford to pay its teachers plans to remain closed until further notice.

The update is posted on the website of Buena Vista School District, located near Saginaw. It hasn't held classes since May 3.

The district laid off teachers and all but three employees May 7. The district has said it wouldn't be able to make payroll May 24 because the state put a hold on its funding to recoup about $580,000 for a juvenile detention education program the district no longer operates.

Meanwhile, MLive.com reports Democratic Congressman Dan Kildee of Flint says 91 percent of the district's students get federal food assistance through free and reduced lunch programs, and he wants to ensure the shutdown doesn't affect their nutrition.

Class of 2013: The Most Indebted Ever

Zero Hedge,

18 May, 2013

70% of graduates had at least some debt according to the latest poll from Fidelity Investments but as the Wall Street Journal reports the average student-loan debt for a borrower who received a bachelor's degree in 2013 is $30,000 - an all-time record. 

With $986 billion of outstanding student loan debt (up 50% from Q1 2009) and unemployment rates running at or near all-time highs for the 16-24 year old cohort in this nation, it is little surprise that delinquencies are surging. 

The unemployment rate among graduates is 7.1% (which is considerably worse than it looks given that many are stuck in low-paid jobs) but it is those who don't complete college that face the greatest burden - the median annual income of a non-completer was $25,000 (compared to $33,900 for a degree holder), less than the average student loan debt. 

As the WSJ notes though, the 2013 class is unlikely to hold the 'most indebted class ever' title for long as 2014 enrollments and tuition costs look set to continue the 20 year trend...

Chart: Wall Street Journal