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More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

bloomberg.com

31–40 of 298 posts

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#31
A few reasons I can think of:

* Wage garnishment is limited, maybe the ruined the credit score and the max % of garnished monthly paycheck (%15) is less than what they are already paying?

* The type of majors and students background who graduated changed. Maybe universities 4 years ago decided to accept more students into majors which are having a hard time finding employment. Universities don't care, they just want more students with 6 figure approved loans to roll in.

* It is possibly there was a hint or signal of debt forgiveness being implemented. It doesn't have to be true, just a rumor but it can start to self-perpetuate because people really want to believe it.

* Also everyone is pretty connected these day via social media so maybe if someone bragged about not paying and "look a few months later, nothing happened to me" others might start thinking, hmm, well maybe it's ok. Certainly nobody wants to be left still paying like a fool if all their cool friend stopped and they still seem to be doing ok, kind of attitude.

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#32
post #19

Earlier quoted context omitted.

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.

That's far too direct and obvious, we prefer expensive, obfuscated "solutions" here.

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#34
As this other Bloomberg piece notes [1], it's probably useful to break out the type of school and degree when looking at debt. It's not clear that basic undergraduate degrees are an issue with ballooning debt as much as for-profit schools and graduate degrees that don't do much for employment prospects. (The latter not just being a case of "useless" degrees but professional degrees like MBAs and JDs from low-tier or even just non-top-tier schools.)

[1] https://www.bloomberg.com/view/articles/2017-09-27/it-should...

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#35
post #19

Earlier quoted context omitted.

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.

[deleted]

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#36
Serious question: Who loses out if all the student debt got canceled? Not the colleges, I assume, because they already got the tuition. And not the students. So would it be loan companies and the US government? Would such an action be catastrophic?

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#37
post #17

In a nutshell, as a generic reasoning, say that a few years ago the student loan was about US$ 100,000 and once you got the degree you had - on average - a higher pay of around US$ 10,000 per year (net). You could repay it in 10 years time while living at the same level of your non-graduated friends. Now say that the student loan averages US$ 150,000 and - still on average - the increase in annual wages is US$ 7,500…

Speaking of lessened "value" of degrees, University's need to be held accountable for some of the debt that they are encouraging students to take on. For example, at my public university, STEM students were charges several thousand dollars a year more than humanities students. STEM programs also did their best to discourage enrollment. Meanwhile the anthropology department is literally begging students to stay and get a masters or phd with them.

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#38
post #21

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?

The uptick isn't. But if 1/5 student loans are more than 30 DPD, that will be a problem.

Honest question: why is 1/5 that much more of a problem than 18.8%?

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#39
post #19

Earlier quoted context omitted.

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.

You need to remember what country "we" are discussing, and adjust your expectations accordingly.

Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why

#40
post #19

Earlier quoted context omitted.

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.

And when public college becomes the new high school continue to add layers of education as needed.
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