The share of Americans at least 31 days late on loans from the U.S. Department of Education ticked up to 18.8 percent as of June 30, up from 18.6 percent the same time last year
Is this newsworthy?
More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
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Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#22>unemployment is low Yes, but many people have been designsted as "having stopped looking for work", which means the statistic doesn't count them. Additionally, those who are employed perhaps are underemployed, working as an Uber driver or bartender or chipotle or etc. >the economy has improved For the top 6% of Americans that are millionaires, it absolutely has improved. Most of their income is from capital gains, d…
> which means the statistic doesn't count them
They do, they're called "not in labor force" [0]
If you include the unemployed as well as those who want a job but aren't actively looking, it's around 5% which is considered low.
But the point of the article is that the unemployment rate is moving in the opposite direction to the arrears rate. Unless the basis for these figures has changed recently, this would require that an abnormal number of graduates aree becoming less emlpoyed while an abnormal, and larger, number of grads are becoming employed. Seems unlikely.
> ...perhaps are underemployed
Are you sure? I'm not totally familiar with the exact counting mechanism in the US but, in the UK, if someone is in part-time work but is looking for more hours or full-time work, then they count as unemployed, not employed.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#23Due to government involvement, there is a lack of a true market pressure when student loans are underwritten. Not surprising in the least that this bubble is starting to pop.
This is such a silly meme. Its not "due to government involvement." Its "due to the manner of government involvement." Loans that are guaranteed by the government, for all students, that can't be discharged by bankruptcy, is an idea clearly put together by lenders. If we wanted government subsidies for private education, there are plenty of alternatives. Here's one: government guaranteed loans for all students; but r…
Or we could make public college free, just like we did with high school.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#24From the article: "Department of Education ticked up to 18.8 percent as of June 30, up from 18.6 percent the same time last year, new federal data show."
There's your answer - 0.2pp is totally insubstantial, which makes the title borderline clickbait. The economy doesn't uniformly grow or distribute wealth, so a change so small could just be from the distribution of college leavers in a particular year being overindexed towards sectors that aren't growing.
Further to that point, it typically takes years for people to adjust their majors towards sectors of the economy that are particularly productive, so we shouldn't expect to see such a quick change in the numbers.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#25Is it possible that some graduates are realizing that for all that money, their education was not what they were promised, and a bit of resentment has led them to make the decision not to pay?
I feel like it might actually be somewhat socially related as well. If people see that their friends/coworkers with large student loans are simply deciding not to pay and nothing horrible is happening to them while at the same time they are living more extravagant lifestyles with the student loan money they're not paying, that's an encouragement to not pay yourself as well. Pair this with the last administration taki…
Extravagant? Is this related to avocados?
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#26Is it possible that some graduates are realizing that for all that money, their education was not what they were promised, and a bit of resentment has led them to make the decision not to pay?
I feel like it might actually be somewhat socially related as well. If people see that their friends/coworkers with large student loans are simply deciding not to pay and nothing horrible is happening to them while at the same time they are living more extravagant lifestyles with the student loan money they're not paying, that's an encouragement to not pay yourself as well. Pair this with the last administration taki…
I don't know man?
Social pressures are more complicated than that, and they come from many different directions. I mean, in the hip-hop world, "I Finished Paying Sally Mae Off!" is one of the top rated songs right now. And listening to that song, it's clear that the rapper had fallen behind on his loans from time to time.
So if that "pay it off" attitude has made it down to the hip-hop world, it must be prevalent in the larger society as well. And that's just one "for instance" when you're talking about social pressures around student loans other than the desire to walk away from them.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#27[deleted]
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#28>unemployment is low Yes, but many people have been designsted as "having stopped looking for work", which means the statistic doesn't count them. Additionally, those who are employed perhaps are underemployed, working as an Uber driver or bartender or chipotle or etc. >the economy has improved For the top 6% of Americans that are millionaires, it absolutely has improved. Most of their income is from capital gains, d…
The amount of people I know with degrees who work in retail, or something completely unrelated is staggering. From my observations, I'd guess "underemployment" is the biggest contributor to the late payments. This is just another example of why I urge any young people I know (high school age) to think long and hard before choosing to go to a 4 year college. When I graduated high school in 99', we were primed to think…
The key is a marketable college degree. In fields such as aerospace and defense where the credential is the key to open the door, get the credential as cheaply as possible. Do a couple of years at a community college and then finish at a state school. Name-brand degrees bring no extra value. Oh yeah, and get your master’s while you’re still in the zone.
The idea that trade school somehow is lower tier or oppressive is a staggering disservice. Just like every college-bound high schooler is not med school material, not every high schooler is college material. Put a wrench or saw or blowtorch in the hands of a doctor or engineer, and crummy is the likely result. Skilled trades are an honorable, respectable way to earn a good living. Forcing people into tracks for their own supposed good but where they feel hopeless is horrible social engineering.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#29The share of Americans at least 31 days late on loans from the U.S. Department of Education ticked up to 18.8 percent as of June 30, up from 18.6 percent the same time last year Is this newsworthy?
The uptick isn't. But if 1/5 student loans are more than 30 DPD, that will be a problem.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#30Is it possible that some graduates are realizing that for all that money, their education was not what they were promised, and a bit of resentment has led them to make the decision not to pay?
I feel like it might actually be somewhat socially related as well. If people see that their friends/coworkers with large student loans are simply deciding not to pay and nothing horrible is happening to them while at the same time they are living more extravagant lifestyles with the student loan money they're not paying, that's an encouragement to not pay yourself as well. Pair this with the last administration taki…
I repaid, but the Equifax information is wrong.....