We're headed toward a financial crisis. Borrowers not being able to pay loans.. Awfully sounds like the mortgage crisis.
More Than 40% of Student Borrowers Aren’t Making Payments
111–120 of 441 posts
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#112Earlier quoted context omitted.
Don't teachers usually have loan forgiveness programs after X-years? I think a lot of government associated jobs offer a perk like this. I'm not sure if this is state specific or not though.
They are conditional with having employment in the first place as well as if the government entity they are under has approval for such forgiveness. My wife doesn't qualify under most programs and given the glut of newer grads or veterans (she's been beaten out by veterans for 10 positions with 100+ applications referred - none of which were non-veterans according to the hiring committee we managed to find out) she's…
We all bare our burdens... you should be so lucky that your burden loves you.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#113There's a simple solution, the Feds should cutoff loans for schools that don't get their students jobs. The government are the only ones that are able to accurately calculate which schools are completely worthless. In fact they should take it one step further and advertise to the whole world what percentage of students get jobs in their studied field and the average starting salary. That would finally put some market…
Just make the colleges partially responsible for defaults. Not enough that they won't take chances, but enough that the steer students away from $100000 teaching degrees.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#114That is a sad state of affairs, though I must say I have seen worse numbers back in India. Last time I talked with them, I was told that I was one of the 3 active accounts out of 20 granted ones that was repaying the loan. That's 17 out of 20 in default - a massive 85%. Some of them were actually not in a situation where they could pay back the loan. Others didn't want to. This was the situation at that single bank b…
I'm curious, how does the cost of higher education in India compare to the U.S.?
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#115Earlier quoted context omitted.
The TARP bailout was not money just handed out to banks. It was loans to banking and other industries which was repaid in full overall. And in fact it was the auto industry which failed to repay the loan, not the banking industry. I'm not a fan of the financial sector but let's keep the facts straight here
It was backstopping shitty loans with the full faith & credit of the gov't. Note that the person who received the shitty loan still got foreclosed on and lost their equity. The persons responsible, who made the loan, don't have to take a loss.
What sort of belief should I start from to be able to decide that people taking a loan they can't afford bear no responsibility? I imagine it's the same sort of thinking that leads to calling a property they never actually paid for theirs but I am not sure and when I am not sure, I ask.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#116> The Education Department has assembled a “behavioral sciences unit” to study the psychology of borrowers and why they don’t repay. Ha! There is a bit of a hypocrisy there -- if big banks / companies piss away money and choose to strategically default then (and some even get bail-outs), it is just business. If people do it for whatever reason, well clearly the are immoral, deficient somehow, their psychology needs t…
The TARP bailout was not money just handed out to banks. It was loans to banking and other industries which was repaid in full overall. And in fact it was the auto industry which failed to repay the loan, not the banking industry. I'm not a fan of the financial sector but let's keep the facts straight here
And what of quantative easing where trillions of assets of banks (including junk mortgage backed securities) were purchased by the Fed, relieving banks of the full impact of their actions?
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#117I wonder if there is investment vehicle I can short to make some profit if these loans do actually go bad?
Go to the bank and have them write you up a credit default swap.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#118A big takeaway from this article (for me) is that people are surprised that 17 year old kids don't understand what they're doing when they take out that college loan. Shock and astonishment despite there being little to no preparation for this kind of financial understanding previously in their education. That surprise and shock shocks and surprises me. Honestly it kind of reminds me of the whole Yelp minimum wage th…
I would interject that the problem is that problem isn't a lack financial literacy but a lack of good choices for those 17 year olds.
No amount of financial understanding can squeeze a good deal from "barrow $100K and maybe get great success or start on a minimum wage job now".
And sure, there are half-way points like entering a trade but the future of those positions is pretty uncertain as well.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#119We're headed toward a financial crisis. Borrowers not being able to pay loans.. Awfully sounds like the mortgage crisis.
Except the government owns most of the debt, and can easily adjust it since it also mints the money.
Re: More Than 40% of Student Borrowers Aren’t Making Payments
#120There's a simple solution, the Feds should cutoff loans for schools that don't get their students jobs. The government are the only ones that are able to accurately calculate which schools are completely worthless. In fact they should take it one step further and advertise to the whole world what percentage of students get jobs in their studied field and the average starting salary. That would finally put some market…
There's an even simpler solution -- fire the middle managers that are the largest driver of increases to college tuition[1], raise taxes, and provide higher education at low or no cost the same way the rest of the wealthy, industrialized world does. This is a solved problem everywhere else and we should be embarassed in the U.S. that the system we have persists.
[1]http://blogs.wgbh.org/on-campus/2014/2/6/growth-nonacademic-...