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What Student Loans Are Really Spent On

Tyler Durden's picture




 

There was a time when student loans, now almost entirely funded by the US government, and thus a general obligation of all US taxpayers who however have no recourse to ever collect on any collateral, were spent on such trivial things as, well, higher education. Sadly, it appears that that is increasingly no longer the case. To wit: "feds accuse Newport man of using school loans on drugs, motorcyles, games and tattoos." At least no iPhone 3, 3S, 4, 4S or 5 was purchased using private and taxpayer cash.... in this case.

From PennLive

Robert Thomas Price Jr. borrowed about $105,000 for his tuition at Harrisburg Area Community College from 2005 and 2007, federal authorities say. It doesn’t cost anywhere near that much to study at HACC, though.

So Price, 45, of Newport, is facing federal student loan fraud and mail fraud charges.

 

A U.S. Middle District Court indictment alleges that Price spent much of the loan money on crack cocaine, cars, motorcycles, jewelry, tattoos and video games.

 

U.S. Attorney Peter J. Smith said today that Price secured about $92,000 in private student loans and around $13,000 in federal PELL grants and Stafford loans. Price was aided in the alleged scam by his ex-wife, a former HACC employee who is not charged or named in the case, Smith said.

 

He said that if convicted Price could receive up to 20 years in prison and $250,000 in fines.

 

Tuition for 12 credits of study at HACC currently costs $2,022 per semester for students from sponsoring school districts and $2,748 for those from non-sponsor districts.

And now we know.

Of course, another curious place where as we pointed out in the past there is an odd correlation, is between federally funded student loans and the cash holdings of a certain fruit-shaped stock...

... as well as its stock price.

But don't worry: correlation never implies causation. What causation there is, will be apparent in a few short years, when the Fed, having failed with QE8 (just like the BOJ last week), proceeds with QE9 - monetizing student loans... and the bad debt held by Apple Bank of course.

And for those curious what other 'fringe benefits' exist for banks as a result of cheap student debt, and the willingness of student to take on more, more, more debt, here is an interesting infographic

 

h/t @Cate_long

 

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Thu, 09/27/2012 - 15:11 | 2836341 moskov
moskov's picture

The Fed is too stupid not to introduce a shopping loan for average citizens to create more demand!

Thu, 09/27/2012 - 15:13 | 2836354 drivenZ
drivenZ's picture

that's called a credit card. 

Thu, 09/27/2012 - 15:19 | 2836386 Pladizow
Pladizow's picture

Moral of the story: Dont steal from theives!

Thu, 09/27/2012 - 15:21 | 2836396 redpill
redpill's picture

Don't steal at all! (the government hates competition)

 

Might as well blow your loan on blow, there won't be a job for you once you're done with your edumacations anyway.

 

Thu, 09/27/2012 - 15:28 | 2836410 MillionDollarBonus_
MillionDollarBonus_'s picture

I am once again appalled at the level of verbal reasoning skills displayed in the comments sections of this site.

Reasoning 101:

An argument consists of two parts

  1. Proposition
  2. Reason and evidence for  the proposition

For example, students would be unable to attend college without student loans from the government (proposition) because college tuition fees are too high (reason) as documented in college brochures (evidence). I find it pitiful that silly ZH readers can’t even construct a coherent argument. The lack of well formed arguments on this site is a stark testement to the simple mindedness and an inferior intellect of the zerohedge readership.  

Thu, 09/27/2012 - 15:34 | 2836431 crusty curmudgeon
crusty curmudgeon's picture

Thanks for the lesson!  I was going to say, "I like lint" but now the new edumucated me says, "I like lint 'cause it's got colors and it's all fluffy and stuff."

Thu, 09/27/2012 - 15:34 | 2836459 Chris Jusset
Chris Jusset's picture

ZH should hold a competition as to when the Fed will begin monetizing student loans.

 

My guess is September, 2013.

Thu, 09/27/2012 - 16:55 | 2836741 CPL
CPL's picture

Do it like a draft season pick board with spreads.

Thu, 09/27/2012 - 17:19 | 2836771 Pure Evil
Pure Evil's picture

So who's a bigger retard, the idiot that looks down his nose at all the intellectually inferior ZH readership, but yet continues to stick around because its the only way he can feel superior over the simpletons, or the silly ZH readers unable to construct coherent sentences.

MDB, if you don't like crawling around with trash, pick yourself up out of the gutter.

Fri, 09/28/2012 - 05:05 | 2837925 The Alarmist
The Alarmist's picture

Or go to Cancun, the town practically built on Student Loan money.

Thu, 09/27/2012 - 17:12 | 2836785 crusty curmudgeon
crusty curmudgeon's picture

Why would the Fed monetize student loans?  The slaveowners need slaves.  It's not like the Fed doesn't already give the banks far more than they ever lose in bad loans.

Thu, 09/27/2012 - 22:38 | 2837490 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I am glad someone wisely used the student loans on various drugs and tattoos instead of indoctrinated Marxism.

Thu, 09/27/2012 - 23:45 | 2837611 A Nanny Moose
A Nanny Moose's picture

Tat's and blow? Smart money is on boats in which to have unfortunate accidents.

Thu, 09/27/2012 - 15:36 | 2836465 nope-1004
nope-1004's picture

Problem here is that he stole from the Government.  Had he stole, oh..... say $1.3 Billion from private, it would go unnoticed.  The amount matters NOT, but who got fleeced.

 

Thu, 09/27/2012 - 15:42 | 2836491 CrimsonAvenger
CrimsonAvenger's picture

You're missing the most beautiful point here. Since he stole $100K from the government, we're going to jail him for 20 years, at a cost to the government of at least $100K/year. If we forgave the debt we'd come out ahead by $1.9 million.

Thu, 09/27/2012 - 15:50 | 2836526 Ptero9
Ptero9's picture

Yes, and when he gets out we'll set him up with another loan so he can pay the $250,000 fine.

Thu, 09/27/2012 - 16:04 | 2836589 Pure Evil
Pure Evil's picture

Who's stupid enough to pay $2,748 per semester to go to a Community College?

Must be one of MDB's extended family members.

Fri, 09/28/2012 - 05:08 | 2837928 The Alarmist
The Alarmist's picture

Sounds like he didn't actually go to community college, just used it to funnel loan funds to other purposes.  Not so stupid after all (except for the getting caught part.)

As for the costs of incarceration, don't forget that he will probably be used as prison labor for a few cents per hour, helping to on-shore yet another value adding job.  This has gotta be good for us, right?

Thu, 09/27/2012 - 16:17 | 2836620 CrimsonAvenger
CrimsonAvenger's picture

At the rate the Fed is going, he won't need a loan in 20 years to pay $250K - that'll be pocket change.

Thu, 09/27/2012 - 15:56 | 2836563 CommunityStandard
CommunityStandard's picture

It's 42k per year for a prisoner in PA, though your point still stands.

http://www.vera.org/files/price-of-prisons-pennsylvania-fact-sheet.pdf

Thu, 09/27/2012 - 17:19 | 2836809 BurningFuld
BurningFuld's picture

Thank God I live in Canada. A judge here would actually say: "You think people want to pay to keep you in jail? You should be ashamed of yourself! Now go home. 3 months house arrest." End of story. But then our government would not be stupid (corrupt) enough to lend that amount of money in the first place.

The USA really really needs a third political party. Come on you guys!

Thu, 09/27/2012 - 17:53 | 2836897 Cathartes Aura
Cathartes Aura's picture

amrka has enough party-ing already. . .

agree with the * 0.o * at a COMMUNITY COLLEGE charging over $2k per semester - but there's where one might start the investigation. . . it will no doubt end up at a for profit prison complex. . . circle jerk all round!

just like JPM's SNAP cards funneling monies to prop up corporate fud-stores and fast fud drive-thru hot spots, student loans are keeping "colleges" in the employment business, not to mention the new buildings these places offer all their new students, so construction jawbs, etc. etc. etc.

ponzi e-CON-o-me - come git u sum.

Thu, 09/27/2012 - 18:42 | 2837006 SubjectivObject
SubjectivObject's picture

Towards making a distinction between our country and the rest of America, Canadians may refer to the US as Amerwrecka.

Fri, 09/28/2012 - 00:05 | 2837653 merizobeach
merizobeach's picture

I call it the USuckAss.

Canada is such a sad story.  Like America, it's a big, beautiful land that's made absolutely intolerable by the people who live there.

Thu, 09/27/2012 - 15:49 | 2836520 Winston Churchill
Winston Churchill's picture

Alas,poor Bernie Maddoff already found this out.

If he had just stuck to ripping off sheeple,why.he could be the next chairsatan.

Thu, 09/27/2012 - 15:39 | 2836476 knukles
knukles's picture

 

 

"Never relint; QE until it works"                      

Booyah Bitchez!

 

Thu, 09/27/2012 - 16:03 | 2836590 MillionDollarBonus_
MillionDollarBonus_'s picture

"I like lint" is a subjective truth, not a universal proposition. This is yet another example of a zerohedge reader who fails to demonstrate even simple elementary reasoning skills.

Thu, 09/27/2012 - 16:28 | 2836625 crusty curmudgeon
crusty curmudgeon's picture

BoooYaaaah!!

MDB, it's me, Jim Cramer.  Back up the truck and load up on FB!

Thu, 09/27/2012 - 16:29 | 2836656 MisterMousePotato
MisterMousePotato's picture

I.e., "[Lint is good] 'cause it's got colors and it's all fluffy and stuff."

See? Simple.

Thu, 09/27/2012 - 17:27 | 2836828 Pure Evil
Pure Evil's picture

Of course MDB likes lint. He especially likes to pull it out of his navel and stuff it between his ears.

Thu, 09/27/2012 - 16:35 | 2836684 El Viejo
El Viejo's picture

MDB

I love your twisted humor, but you misspelled "testament" in your previous post.

Thu, 09/27/2012 - 17:25 | 2836814 Pure Evil
Pure Evil's picture

Golly Sergeant, looks as if Mr. Superiority has a chink in his armor. 

Thu, 09/27/2012 - 15:28 | 2836432 redpill
redpill's picture

I think I speak for all of the ZH readership when I say we're simply in awe of your careful reasoning.  You should start a hedge fund.

Thu, 09/27/2012 - 17:06 | 2836772 crusty curmudgeon
crusty curmudgeon's picture

This crazy world is getting too much for me.  Give me the blue pill.

Thu, 09/27/2012 - 18:08 | 2836933 Peter Pan
Peter Pan's picture

Preferably a hedge fund for politicians.

Thu, 09/27/2012 - 15:32 | 2836442 Badabing
Badabing's picture

Reasoning 101:  face book LOLOLOLOLOLOLO 

Thu, 09/27/2012 - 15:36 | 2836453 knukles
knukles's picture

Guy spent Obama's stash on the wrong shit.

Now this is CE certified (approved by the EU!) and he might need it in Soledad

http://www.x4labs.com/

MDB, would help your focus.... an argument consists of 3 parts...proposition, reason and big fucking club to beat the dumb asshole to death when he continues to spew useless tripe

Thu, 09/27/2012 - 16:35 | 2836685 Son of Loki
Son of Loki's picture

Colleges should have some stake in the loan sprogram. In other words, they must "keep" 20-40% of the loan...or the loan losses if the student defaults. This would incentivize them to choose more carefully who gets the loan and how it is being used. (Of course, house lenders should have the same requirement).

 

I'm not sure how  much an education is worth but I guess it depends on your major. My friends was on a HR panel for two new hires. 468 MBAs, lawyers and other applied for the two positions! How did they choose?

 

One was chosen b/c they were from a well-connected, super wealthy family...the 1 other was chosen based on his merits. The best majors may still be hard science---you will not be billionaire but you will make a decent living.

Thu, 09/27/2012 - 15:44 | 2836498 resurger
resurger's picture

"An honest troll is one who, when hes bought, stays bought" Simon Cameron

 

Thu, 09/27/2012 - 15:46 | 2836506 semperfi
semperfi's picture

While reading this, the image that formed in my mind was that of the Blazing Saddles scene at the end where the brawl busted thru the studio wall into the boys-dressed-in-tuxes production

Thu, 09/27/2012 - 16:16 | 2836618 Darth Rayne
Darth Rayne's picture

I have a friend who is forever borrowing money, defaulting, borrowing more. I used to think he was stupid.

Unfortunately, I now think it is me who is stupid. I do nothing to help create money. I never borrow.

It is a great pity that there aren't more like my friend and the gentleman this story revolves around.

Both are creating vast amounts of money.

I don't even know what money is. I am into a collectible, gold.

I can't apologise enough.

I ought to swap my gold for bits of paper with numbers on. Use that paper as a deposit on a house that is 2 - 3 times more expensive than the market can bear. Then smash all its windows. I am sure there must be more I can do but as I stated earlier I am stupid.

Thu, 09/27/2012 - 16:31 | 2836666 RSloane
RSloane's picture

Its 'testament'. But I know you did that on purpose.

Thu, 09/27/2012 - 16:33 | 2836672 JPM Hater001
JPM Hater001's picture

"students would be unable to attend college without student loans"

If you summed up all the dumb shit your trolling has laid out the need for a student loan to attend college would be the result.

Oh wait, it is.

Thu, 09/27/2012 - 16:34 | 2836680 _SILENCER
_SILENCER's picture

Tuition wouldn't be so goddamned high if Government and the corrupt loan industry wasn't involved.

You don't really think there's 30K in actual scholastic costs in order to send a spongy young brain to UC Santa Cruz to be traumatized and brainwashed by modern mainstream dummy liberalism, do you?

 

Thu, 09/27/2012 - 16:42 | 2836708 disabledvet
disabledvet's picture

"I hear this guy leads direct to the the folks who caused your state to overspend and lead it into bankruptcy." is that the type of argument you were trying to make?

Thu, 09/27/2012 - 17:08 | 2836776 Offthebeach
Offthebeach's picture

Does she have big brests-ess?

Thu, 09/27/2012 - 17:18 | 2836803 mrdenis
mrdenis's picture

If the gubment never got into loans ,the cost would be 1/10 th what it is ....same wit healthcare...same with housing  

Fri, 09/28/2012 - 08:04 | 2838079 dolly madison
dolly madison's picture

I was actually just pondering on this subject a short bit ago.  I home-school my children, so I was thinking about how writing is taught in such a structured way:  topic sentence, 3 supporting sentences and closing sentence.  The closing sentence restating the topic sentence is an irritant to my daughter and me.  It is too formulaic, and so is not good writing.  This formula for writing, and your formula for argument are too stifling.  It keeps people in the box too much.  It leaves no room for intuition or camaraderie.  Zerohedge is not the debate team.

Thu, 09/27/2012 - 15:26 | 2836418 Badabing
Badabing's picture
What Student Loans Are Really Spent On

 

a hard hat that can hold two beers?

Thu, 09/27/2012 - 15:39 | 2836481 Skateboarder
Skateboarder's picture

Thing's no bueno if you don't have a year's supply of Natty Lite to throw in it. Don't forget the handle of Hennessy every Friday, the handle of Stoli every Saturday, and bottomless mimosas (for recovery, of course) every Sunday.

WHERE'S ALL THAT MONEY GONNA COME FROM? TREES!?

Thu, 09/27/2012 - 17:47 | 2836885 Dr Benway
Dr Benway's picture

Y'all assume that the crack was bought for fun. But it may well have been a business venture. Can't really take out a bank loan explicitly to fund a burgeoning crack enterprise.

Thu, 09/27/2012 - 15:41 | 2836485 toady
toady's picture

My cousin is getting 10k a year to go to nursing school. She bought a used car to get back and forth, pays daycare for her kid, and, of course, got a beautiful new tattoo.

Now she doesn't have enough money for tuition for the rest of the year.

Thu, 09/27/2012 - 15:54 | 2836549 DavidJ
DavidJ's picture

Excuse my ignorance, but shouldn't the entity lending the money transfer the money directly to the institution that the loanee is going for education

 

That is Sallie Mae transfer the student loan money directly to Uof Maryland to pay for teh education of Jane Public.

Thu, 09/27/2012 - 16:15 | 2836614 MsCreant
MsCreant's picture

Oh innocent, innocent, DavidJ. That is not how it works. The student gets the check. If you are really good, you have other stuff (grants, scholarships) paying the tuition, and what does not cover tuition goes to you. So does the loan money. I know kids making money without loans, going to college (thousands a year). I am here to tell you that enrollments are up because people are working this angle because of the bad economy. This semester, I lectured on the economy and student loans and the Baltic Dry Index the second day. Guess what, when I said that they can garnish your future wages, many of them made me slow down, explain what I meant. Some of them dropped my class. Don't know if they dropped out of school or not. Not to worry, the slots were filled again (in fact I am over enrolled in that class due to an error). But I am openly calling it a Ponzi scam now. 

Had an administrator in lecturing us on a special program they are running for students with deficits. She talked about how some of them can't read, or write. I lost it and said, "Then why are we letting them in?" The whole table sighed and rolled their eyes and looked at her expectantly and she just said, "yeah, I know." And she moved on with telling us about the new program. 

We do some good for some people in there. I have a few amazing students that I am humbled to be a part of their experience (they will kick my ass when they get to be my age). But it is a scam just like Medical, housing, pharma, I am sick to say. All of it inflated because of subsidy.

I should erase this, lets see if I do.

Thu, 09/27/2012 - 16:30 | 2836662 Careless Whisper
Careless Whisper's picture

Remember, you're talking to people that have been completely brainwashed over the years. It won't be easy to reason with them.

Thu, 09/27/2012 - 17:47 | 2836884 MachoMan
MachoMan's picture

You can reason with everyone, you just have to learn to talk their language...  in this case, it seems they understand garnishment...  unfortunately, they'll be learning a whole lot more about that in the next few years...  especially when the student loan interest deduction gets dropped.  Ouch.

Fri, 09/28/2012 - 08:22 | 2838106 Disenchanted
Disenchanted's picture

 

 

 

How can garnishment apply to someone who is unemployed? Many of these 'graduates' will be exactly that when their 'schooling' is finished. Good luck getting that student loan paid off...

Fri, 09/28/2012 - 09:52 | 2838488 MachoMan
MachoMan's picture

How do they receive the funds from which to live then?  To put it a different way, WHO do they receive these funds from?  Unfortunately, it's going to be the same entity they owe...  oops.  Also, this is just contemplating current law...  I strongly suspect there will be additional measures brought forth to squeeze debtors with student loans just a bit more (including removal of the student loan interest deduction).

There's more than one way to skin a cat.

Thu, 09/27/2012 - 23:51 | 2837620 A Nanny Moose
A Nanny Moose's picture

Yet I must ask....er beg...for gummint permission for how I spend MY money in MY HSA?

Fri, 09/28/2012 - 05:11 | 2837931 The Alarmist
The Alarmist's picture

It's just another way to return the masses to their rightful state of serfdom while letting them think they are still free.

Thu, 09/27/2012 - 16:01 | 2836583 MsCreant
MsCreant's picture

If I give your comment an uptick, it is as if I approve of your cousin who I know you are frustrated with (I KNOW, got those relatives too). If I give it a down, you think I don't vibe with the comment...What to do what to do...

+100 cause damn I know how you feel and it is you they come to for, er, uh, heh, heh, sympathy.

Thu, 09/27/2012 - 16:48 | 2836726 BooMushroom
BooMushroom's picture

My ex-sister-in-law quit her job to go on welfare and go to a tech school for nursing... because her sister had done the same thing. Now they have credentials, and can't still can't find a job.

Thu, 09/27/2012 - 16:51 | 2836734 Gully Foyle
Gully Foyle's picture

BooMushroom

Then are fucking not trying hard enough.

Every nursing home has a high turnover rate.

They can be aides and wipe shit.

The gf once worked in a home where a sales guy came in a dropped over from a heart attack.

Five nurses stood around and watched him die.

Are those women in the family better qualified than the five I mentioned?

Thu, 09/27/2012 - 19:20 | 2837085 toady
toady's picture

Your third sentence is what kills it for most. Clean shit? No way!

Gee, I 'll never need to clean shit if I go into healthcare ....

Reminds me of the computer science majors...

Gee, I'll never need to be oncall if I go into IT....

Fri, 09/28/2012 - 00:06 | 2837657 A Nanny Moose
A Nanny Moose's picture

/sigh...In that last 25 years it has improved significantly however, IT still has much to learn about engineering in redundancy.

 

Thu, 09/27/2012 - 16:33 | 2836677 JPM Hater001
JPM Hater001's picture

Although an enterprising one might invent one that holds 3!

What a glorious future that would be.

Now where to put my scotch....hmmm

Thu, 09/27/2012 - 15:26 | 2836421 knukles
knukles's picture

So he'll go to jail for 20 while Corzine makes 20/day in interest alone

Thu, 09/27/2012 - 15:29 | 2836434 redpill
redpill's picture

Then once he gets out, they'll send him back to jail for another 20 for being two decades late on student loan payments.  Huzzah!

Thu, 09/27/2012 - 19:20 | 2837083 JuliaS
JuliaS's picture

In 20 years a single blowjob in jail will earn him more inflated dollars than the loan is worth.

Fri, 11/30/2012 - 03:19 | 3022940 jaffa
jaffa's picture

In an interest only loan you never pay principal down at all, just pay interest only. when the loan term is over, you still owe the principal in full. These work best when you're taking out a short term loan to, say, rehab a house that you intend to sell for more than you bought it for, so that you can reap the profit. These loans aren't for the average person. These loans are for various terms, but usually short term and are almost always fixed rate. Thanks.
Regards,
Eurochance 100

Thu, 09/27/2012 - 15:55 | 2836408 vast-dom
vast-dom's picture

hope he bought a nice motorcycle and put many miles on it. and his tattoos, while most classy, will surely last a lifetime. wonder if his co-conspirator got some matching tats too on that loan? these are all clearly educational; for e.g.:

1. ride safe

2. tattoos really are special, different and classy 

3. navigating the legal system shall be enlightening, rendering reading Kafka's The Trail and English Lit redundant 

4. crack is.....

5. jewelry, if comprised of gold, will yield more than a mere community college education (if he went to Princeton and got an econ PhD, then he would have robbed the world most likely of a helluva lot more)

Thu, 09/27/2012 - 15:39 | 2836478 AlaricBalth
AlaricBalth's picture

Stafford student loans and other government originated loan proceeds must be made payable to the student and educational institution jointly. In privately originated loans the proceeds go direct to the student.
The loan is supposed to be used for tuition, fees, etc.

The scam occurs when these "students" withdraw from their courses prior to a two to three week period after a course begins. Once they withdraw, they are entitled to a refund from the school and the school cuts a check to the student rather than sending the money back to the lending institution.
Thousands of people do this every year without ever intending to go to classes.

The government knows this fraud is occurring and does nothing. A quick fix would be to refund the lender, but then you would not be creating more debt slaves. And the stupid borrowers think they are getting free money. The whole student loan system is corrupt, from borrowers to lenders to guarantors.

Thu, 09/27/2012 - 18:38 | 2836997 Big Corked Boots
Big Corked Boots's picture

+1. I knew guys doing this 30 years ago. Astounding that the system hasn't changed.

Thu, 09/27/2012 - 16:27 | 2836645 Gully Foyle
Gully Foyle's picture

Pladizow

You are so wrong.

The moral is NEVER get caught.

If you are stupid enough to be caught after or in the act of criminality you deserve jail time.

I met a guy who did time for smuggling cigarettes and selling from his shop on the res. He fucking drove the truck to pick them up and opened one of the ac boxes they were shipped in.

Fucking moron didn't use a cut out as a fall guy.

There is an article on line following his connection through some Jews in either NYC or Jersey back to the Mexican cartels.

Fun read.


Thu, 09/27/2012 - 16:38 | 2836693 Renewable Life
Renewable Life's picture

LMFAO!!!!

It taken some "think tank" 20 years to finally figure out what I knew after one week of living in the dorms of my university my freshman year!!! When you walked down the halls and saw half the occupants not at class and sitting in their underwear, playing video games, drinking and eating pizza everyday...... And then they were gone by 2nd semester!!! It was a great 4 months for those guys, let me tell you!!!

Oh and 90% of them were on pell grants, free housing vouchers, free meal plans, etc

Now that's not to say, those things don't help kids get through college, because I was also on pell grants, and student aid and I went on to graduate with two degrees, started two companies, employ hundreds of people and pay more taxes back then most people can imagine........

However that doesn't change the fact that I watched dozens of guys blow their opportunities and the people's money in a drunken orgy for 4 months either!!!

Thu, 09/27/2012 - 18:05 | 2836928 Cathartes Aura
Cathartes Aura's picture

womenz are takin' all their jawbs. . .

Thu, 09/27/2012 - 16:06 | 2836598 AmericanFUPAcabra
AmericanFUPAcabra's picture

No he is pretty much right. Quarterly student loans are about the bussiest days of the year for the pawn shop i work for.
People will come get all of their shit out of pawn, buy more shit they cant afford, and it all winds up back in loan in about a month later when they 'overleverage' themselves.

Thu, 09/27/2012 - 15:14 | 2836360 Killtruck
Killtruck's picture

He sure picked a terrible time not to be a campaign bundler.

Thu, 09/27/2012 - 16:34 | 2836679 JPM Hater001
JPM Hater001's picture

He blew it on blow that makes him a Clinton supporter.

Thu, 09/27/2012 - 15:23 | 2836363 Kitler
Kitler's picture

The Fed was working on a deal with the IRS to refund everybodies taxes for the past 10 years to stimulate the real economy with a big cash injection.

Unfortunately the near deal was crushed over objections by the 1 Percenters who claimed the refund would disproportionately favor the poor.

Thu, 09/27/2012 - 15:16 | 2836369 Clueless Economist
Clueless Economist's picture

WOW..If I am on jury I convict for being stupid...Crack, Bikes, tattoos???  If I stole $105 K it would buy PM's lost in a boat accident.

Thu, 09/27/2012 - 17:19 | 2836811 Watauga
Watauga's picture

College in the U.S. in 2012 is purely a wealth redistribution scheme.  Essentially, it is take from the taxpayer and the "wealthy" college family and give to the Statist constituency (usually Democrat base).  The taxapayer gets gouged three ways:

(1) Taxes at federal and state levels to build and pay for state colleges.

(2) Taxes to pay for those with "need."

(3) The student loan scheme described above.

The "wealthy" family with kids in college pay through the nose:

(1) As taxpayers, they get gouged as above.

(2) They pay full tuition and fees, much of which is used to pay for those with "need."  

All of this operates to take from someone who has earned and saved his money, to give it to someone who hasn't, and in the end, it is a vote-buying scheme by the Statists, who, once again, create a constituency fully dependent on the State for handouts.

 

Thu, 09/27/2012 - 17:53 | 2836901 P.T.Bull
P.T.Bull's picture

Well said. I also add that it is a scheme whereby colleges get the entire life savings of middle class families. They use scholarships and the like so that families with a smaller life savings can lose theirs, while a wealthier family will be shorn of a larger amount.

Thu, 09/27/2012 - 15:11 | 2836342 Race Car Driver
Race Car Driver's picture

Fuck Sallie Mae.

Thu, 09/27/2012 - 15:35 | 2836467 LMAOLORI
LMAOLORI's picture

 

 

Hon you are Sallie Mae (unless you've never paid taxes) the U.S. Taxpayer is US. Sallie Mae is also your children/grandchildren's debt with interest.

 

Thu, 09/27/2012 - 15:12 | 2836343 resurger
resurger's picture

No belly piercing!?

Thu, 09/27/2012 - 15:21 | 2836345 4Y_LURKER
4Y_LURKER's picture

Are SLABS backed by AAPL?  Hmmmm.

//edit:  Student Asset Loan Backed Securities might have a feedback loop between AAPL and 403(b) plans...?

Just a question on this looming bubble of ominous blame.

Fri, 09/28/2012 - 03:23 | 2837836 stacking12321
stacking12321's picture

AAPL mac pro runs on SLABS.

SLABS is one of the intel s-spec codes for xeon 5160

http://www.cpu-world.com/cgi-bin/IdentifyPart.pl?PART=slabs&PROCESS=Go

Thu, 09/27/2012 - 15:12 | 2836348 Cocomaan
Cocomaan's picture

Untrue about student loan recipients buying apple products. I've heard of plenty of people buying an iphone with their loan money. 

Thu, 09/27/2012 - 15:50 | 2836515 crusty curmudgeon
crusty curmudgeon's picture

Who would buy a phone when you can go to obamaphone.net and get a free one?

(I can't begin to tell you how much I wish this was a joke.)

Thu, 09/27/2012 - 15:55 | 2836556 Dr. Richard Head
Dr. Richard Head's picture

That was actually signed into law under Clinton.

Thu, 09/27/2012 - 18:12 | 2836941 Cathartes Aura
Cathartes Aura's picture

" The Lifeline program was actually created decades ago to help low income families have access to land lines. Over the years the cost of cell phones and cellular service has decreased and the program has been extended to cover cell phones. During the Bush administration, there was the introduction of a project that gave subsidies to those who could not afford a phone. The basic principle of the program is that everyone should have access to emergency services like 911."


it's just the current figurehead's "program" now, but the idea is the same - get folks into the system, and monitor their behaviours. . .

not rocket science.

Thu, 09/27/2012 - 22:14 | 2837448 WillyGroper
WillyGroper's picture

Another big fat subsidy for telco's while screwing the taxpayer. It originally started as a dedicated landline to the house with no dialing capability other than 911 & morphed from there.

Thu, 09/27/2012 - 15:14 | 2836358 Temporalist
Temporalist's picture

And now the taxpayers get to pay for his legal counsel, his trial and also pay for his time in jail.  What a bargain!

Thu, 09/27/2012 - 15:20 | 2836395 insanelysane
insanelysane's picture

but his credit score will be ruined...well for at least a few months

Thu, 09/27/2012 - 15:22 | 2836400 Pladizow
Pladizow's picture

You forgot to mention that its tax payer dollars paying a privately run prison!

Thu, 09/27/2012 - 15:42 | 2836488 knukles
knukles's picture

See see see see...
Stimulus is good!

Thu, 09/27/2012 - 22:18 | 2837458 Hulk
Hulk's picture

Yes but the further along we get, the more stimulus it takes to get the same result. This also applies to our financial system.....

Thu, 09/27/2012 - 15:14 | 2836362 LawsofPhysics
LawsofPhysics's picture

Moral Hazard  bitchez. 

Monkey see, monkey do; FYI- these "students" will suffer more than John fucking Corzine and he stole billions.

Thu, 09/27/2012 - 15:21 | 2836397 Skateboarder
Skateboarder's picture

Those kinds of numbers are too big to keep track of bro. You stole a hundred thou? Boy, I sure as hell can count up to that high and youse gonna get a whoopin.

Thu, 09/27/2012 - 15:16 | 2836364 q99x2
q99x2's picture

What is good for banksters is good for the gangsters.

Thu, 09/27/2012 - 15:16 | 2836365 PUD
PUD's picture

Better lock the dumpster out back of the student union.

Thu, 09/27/2012 - 15:16 | 2836366 John Law Lives
John Law Lives's picture

Here is some GREAT (note sarcasm) news for students:

New data shows Obama may be a job creator, after all
By Annalyn Censky

CNNMoney.com – 2 hours 32 minutes ago

http://finance.yahoo.com/news/data-shows-obama-may-job-162700945.html

I think I am going to vomit.  Obumble is totally inept.  The mirage of economic "recovery" came on the heels of massive deficit spending and other massive fiscal interventions.  Nobody with two brain cells believes Obumble has any real skills to direct the economy.  It is amazing that the populace would turn its nose up at someone like Dr. Ron Paul and produce nominess like Obumble, McCain and Mittens.  Then again, when shows like "Here Comes Honey Boo Boo" get renewed for a 2nd season, I have to wonder how bad things have become...

100% FUBAR.

Thu, 09/27/2012 - 15:17 | 2836376 4Y_LURKER
4Y_LURKER's picture

+ 1 Long FUBAR

Thu, 09/27/2012 - 15:29 | 2836436 RSBriggs
RSBriggs's picture

Wow!  You can trade FUBAR?  Apparently it can rise exponentially forever without breaking - I'm going to go all in on that one...

Thu, 09/27/2012 - 15:44 | 2836496 knukles
knukles's picture

Lighten the fuck up, he's gonna be your next predident.
Supplications....

Thu, 09/27/2012 - 15:46 | 2836505 NewWorldOrange
NewWorldOrange's picture

Or short AAPL. When the loans dry up, how will the iDiots buy the latest iGadget?

Thu, 09/27/2012 - 15:21 | 2836398 irie1029
irie1029's picture

It makes me sick and the dumbfuck obama supporters believe it.  People in the US have just gotten too fing dumb.  BTW I am voting 3rd party where is that in the polls?

 

Thu, 09/27/2012 - 15:31 | 2836440 John Law Lives
John Law Lives's picture

"People in the US have just gotten too fing dumb."

As a side note, I recently watched about 10 minutes of one episode of a show called "Here Comes Honey Boo Boo" on TLC.  I thought it was revolting.  It is about uneducated rednecks living somewhere in rural Georgia.  The show is excrement (imho). Naturally, the show was recently renewed for a 2nd season, and the "talent" reportedly demanded a raise.  Unfvcking believable that a program like that would become so popular.  Then again, how did people like Obumble and McCain and Bob Dole etc. get nominated in the first place...

Thu, 09/27/2012 - 15:50 | 2836528 NewWorldOrange
NewWorldOrange's picture

About five years ago I watched the movie Idiocracy. I remember thinking, at the rate things are going, in another 50 years America could really get that absurd. Seems to me now that I underestimated America's ability to "innovate."

Thu, 09/27/2012 - 16:17 | 2836621 Count de Money
Count de Money's picture

I saw that for the first time a couple of weeks ago. Laughed my ass off. One of my favorites was when the hero goes to the doctor:

"Well, don't want to sound like a dick or nothin', but, ah... it says on your chart that you're fucked up. Ah, you talk like a fag, and your shit's all retarded."

Give Obamacare a few years and life will imitate art.

Thu, 09/27/2012 - 16:57 | 2836749 Gully Foyle
Gully Foyle's picture

Count de Money

Idiocracy is inspired by C.M.Kornbluths The Marching Morons.

Kornbluth wrote his story fifty five years before.

Douglas Adams used the same idea in Hitchhikers Guide to the Galaxy series, where the intelligent people told the dumber ones the planet was going to explode and the herded them on a ship, with the smarter ones supposedly following.


Fri, 09/28/2012 - 12:40 | 2839304 quartshort
quartshort's picture

My inlaws watch "AGT" America's Got Talent. Did anyone else see the jackass who lets people kick/hit him in the nuts? It was a HIT w/ the judges and the crowd... they even gave the guy a standing ovation.

Remember the most popular TV show in the movie Idiocracy?

That's right, "Ow, My Balls".

It is here, now. No need to wait 50 years.

*shudder*

Thu, 09/27/2012 - 15:56 | 2836561 Winston Churchill
Winston Churchill's picture

You watched it for TEN minutes before deciding it was crap.

A little slow are we ?

Thu, 09/27/2012 - 16:48 | 2836723 Gully Foyle
Gully Foyle's picture

Winston Churchill

Dude he could have been drunk/stoned or it had a hot chick in daisy dukes and tank top with nipples showing.

I'm always amazed at the amount of nipple in Brit tv, even ugly old women display them proudly.

Fuck that draws my attention away from the quality of the show for a while.

Thu, 09/27/2012 - 16:47 | 2836724 John Law Lives
John Law Lives's picture

I was watching it at a lady's place after she invited me over.  She insisted I watch some of it.  After 10 minutes I changed the channel to Discovery to watch Mike Rowe host "How Booze Built America".  That was much better (imho).

Thu, 09/27/2012 - 16:59 | 2836755 Gully Foyle
Gully Foyle's picture

John Law Lives

Rowe endorsed Romney.

If you like Rowe google his TED talk. Lot's of very important points about our war on working and working people.

Thu, 09/27/2012 - 16:45 | 2836718 Gully Foyle
Gully Foyle's picture

John Law Lives

Well now people love Revolution. The show about the time after the LAWS OF PHYSICS CHANGED SO NOTHING ELECTRICAL WOULD WORK.

And people use FLINTLOCKS and can't make ICE CREAM!

This is only like ten years after the LAWS OF PHYSICS are negated.

At leats Breaking Bad has some science in it.

(By the way, while watching Ice Road Truckers I realized every driver used regardless correctly. Shocked me.)

Thu, 09/27/2012 - 16:45 | 2836719 Totentänzerlied
Totentänzerlied's picture

I agree, "Dancing with The Stars" is far superior, what ever is TLC thinking?

-Sent my iPhone5S from the future

Thu, 09/27/2012 - 15:26 | 2836424 Skateboarder
Skateboarder's picture

Fuck it dude, since honesty of number doesn't mean jack shit anymore, I'm gonna chime in with some new data.

"Skateboarder creates a record... hear this... TRILLION jobs. Jobs for everyone, rich, poor, stupid, mentally/physically/emotionally/whateverly challenged. You want a job? We got it. And from the looks of it, we've got one for every member of the family, even your grandmother's pet goldfish. Come get 'em whlie they're hot!"

*limited time offer only, restrictions apply.

Thu, 09/27/2012 - 15:35 | 2836468 John Law Lives
John Law Lives's picture

Sadly, honesty of number doesn't seem to mean much these days.  I think the mainstream media could put their spin on just about anything and millions of people would believe it.

Thu, 09/27/2012 - 15:35 | 2836466 Rapada
Rapada's picture

I don't think the populace rejected Dr. Ron Paul. The media rejected him and shut him out - created the illusion that he was rejected. There are more of "us" out there than "they" know. But can we do anything about it? And who the hell is Honey Boo Boo????? I keep seeing that name!

Thu, 09/27/2012 - 15:44 | 2836487 John Law Lives
John Law Lives's picture

"There are more of "us" out there than "they" know. But can we do anything about it?"

I agree that Dr. Ron Paul has millions of devoted followers, but the GOP Machine didn't want him as the nominee.  The mainstream media obviously despises him.  I wish there were more people like him.  

 

"And who the hell is Honey Boo Boo????? I keep seeing that name!"

That is a character on a reality TV program on TLC.  I made reference to the program re. how uneducated some people out there really are.

Thu, 09/27/2012 - 16:04 | 2836591 Dr. Richard Head
Dr. Richard Head's picture

Popular Vote Total 2008 Republican Primaries

20,828,435

Ron Paul had some 1.6 million

Popular Vote 2008 Presidential Election

Obama : 64,639,738
McCain: 56,899,510

Popular Vote of Republican Primaries 2012

18,973,624 with 2,095,762 going to Ron Paul.

I would imagine Obama wins based on primary participation going DOWN for Republicans from 2008, as well as Ron Paul fans sitting out or voting third party.

Thu, 09/27/2012 - 16:31 | 2836668 CommunityStandard
CommunityStandard's picture

Vote for Obama: War with Iran, QEInfinity, Bankers win
Vote for Mitt: War with Iran, QEInfinity, Bankers win

yeah.... I'm voting third party.

Thu, 09/27/2012 - 16:57 | 2836751 Dr. Richard Head
Dr. Richard Head's picture

I will be sitting this one out. 

Mon, 10/01/2012 - 21:17 | 2847087 fiatmasochist
fiatmasochist's picture

RP pulled 25% as write in August primary where I live....don't give up yet....

 

Thu, 09/27/2012 - 18:21 | 2836961 Cathartes Aura
Cathartes Aura's picture

 link to Rush?

you ARE a perfect example of. . .

don't forget to vote!

Thu, 09/27/2012 - 21:38 | 2837384 jerry_theking_lawler
jerry_theking_lawler's picture

back in my younger days, i interviewed for a job with a mining company in their hometown (McIntyre, GA).....I'm lucky I didn't take the job as these would be my neighbors...(never watched 1 minute of the show just did research when I heard about it).

Thu, 09/27/2012 - 15:16 | 2836371 Agent P
Agent P's picture

Sounds like Harrisburg Area Community College has a good Wall St. training program.

Thu, 09/27/2012 - 15:17 | 2836372 Xtreeeme
Xtreeeme's picture

Just a question: instead of giving loan money to student, why can't the govt directly deposit it to university/college?

Thu, 09/27/2012 - 15:17 | 2836375 Pants McPants
Pants McPants's picture

Kidding aside, I don't see any other option than QE9 as the end game for Student Loans.  As has been discussed here countless times, what does it say about a society when it is considered 'responsible' to incur $100k in debt before the age of 23?

Luckily I was able to pay off all of my debt by the time I turned 28, and I have my older brother to thank for whipping me into financial shape.  I didn't appreciate his nosiness at the time, but the tough love paid off (pun!)

Thu, 09/27/2012 - 15:21 | 2836378 ebworthen
ebworthen's picture

This is how it works, this happens on a regular basis on every college campus.

Have known many, many students who used the money for many, many things other than tuition and books.

Just like the housing bubble...loan out money that can't be paid back, get the fees and bonuses for each loan, straddle the government with it, government sticks the taxpayer with it.

I am so tired of hearing the bullshit about an educated workforce.  Most jobs, even high tech, could TRAIN citizens to do the job in six months IF they were willing to commit to the employee. 

Trade schools, Vocational schools, have been trashed and ridiculed in favor of "Higher Education" which is more often than not "Higher Affirmation" and an experience rather than an education; a rite of passage for the coddled wastrals of public education, a money train for idealogue professors and the retail machine behind textbooks, housing, and all the other crap.

Thu, 09/27/2012 - 18:38 | 2836995 Cathartes Aura
Cathartes Aura's picture

+ many. . .

an "educated workforce" isn't needed, but an indebted one keeps the scheming pyramid on-going. . .

 

 

Thu, 09/27/2012 - 15:19 | 2836388 PUD
PUD's picture

True story...I own a shoe store and a chubby bitch asked me recently to hold a pair of boots for her father that she would pick up for him as soon as her student loan came through.. University of Phoenix mind you

Thu, 09/27/2012 - 15:30 | 2836437 insanelysane
insanelysane's picture

and if she wasn't chubby and wasn't a bitch, you would have given her the boots for sex?

Thu, 09/27/2012 - 15:34 | 2836461 Skateboarder
Skateboarder's picture

No, the "University" of Phoenix thing kinda ruins the whole deal...

Thu, 09/27/2012 - 18:39 | 2836998 Cathartes Aura
Cathartes Aura's picture

doubtful.

Thu, 09/27/2012 - 15:22 | 2836401 dbTX
dbTX's picture

Another in a series of brilliant Obama programs, what a country!

Thu, 09/27/2012 - 15:22 | 2836402 recidivist
recidivist's picture

Have to admit to buying a really sweet Bushmaster XM-15 with student loan money...alas, I paid it all back

Thu, 09/27/2012 - 15:23 | 2836403 Shizzmoney
Shizzmoney's picture

Feds accuse Newport man of using school loans on drugs, motorcyles, games and tattoos."

Look on the bright side: At least the money went back into the community and not into the hands of an overpaid college administrator, or an endowment fund for an Ivy League school.

Money spent on weed and tattoos has 1000x's more velocity, and job creation potential, than some poor kid getting a student loan, going to college for 4 years, and not getting a job with his expensive piece of paper the Govt (we) partly paid for.

Thu, 09/27/2012 - 15:24 | 2836406 insanelysane
insanelysane's picture

Let's hope this doesn't slow down the 2nd semester payouts or the Christmas shopping numbers will take a hit.

Thu, 09/27/2012 - 15:24 | 2836411 Temporalist
Temporalist's picture

Oh I don't know why I overreacted; they are going to fine him up to $250,000 so it'll all be paid back in the end...

Thu, 09/27/2012 - 15:25 | 2836412 Duke Dog
Duke Dog's picture

I posted on ZH several weeks ago that all one needs to do in order to determine the primary use of student loans is to watch a couple of episodes of Judge Judy. I know, I hate the bitch too, but it's the only thing to watch at the gym other than Fox or shopping BS. I became convinced after watching for a week or so that the primary use is split almost evenly between cell phones/related charges, downpayments for cars/wheels, or bailbonds.

What a fuking waste.

Thu, 09/27/2012 - 16:08 | 2836602 LMAOLORI
LMAOLORI's picture

 

 

Judge Judy - Where Our Taxes Goes

http://www.youtube.com/watch?v=wX8KpAANkYY

 

Thu, 09/27/2012 - 16:25 | 2836641 Dr. Engali
Dr. Engali's picture

Society's finest. Check out this Obama voter:

http://www.youtube.com/watch?feature=player_embedded&v=tpAOwJvTOio

 

Thu, 09/27/2012 - 15:24 | 2836413 BrigstockBoy
BrigstockBoy's picture

Wow, when I was in college, we spent the student loans on Domino's Pizza. I feel like such a piker...

Thu, 09/27/2012 - 15:25 | 2836415 foodstampbarry
foodstampbarry's picture
“Once the people find they can vote themselves money, that will herald the end of the Republic.” – Benjamin Franklin
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