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The Scariest Chart Of The Quarter: Student Debt Bubble Officially Pops As 90+ Day Delinquency Rate Goes Parabolic
We have already discussed the student loan bubble, and its popping previously, most extensively in this article. Today, we get the Q3 consumer credit breakdown update courtesy of the NY Fed's quarterly credit breakdown. And it is quite ghastly. As of September 30, Federal (not total, just Federal) rose to a gargantuan $956 billion, an increase of $42 billion in the quarter - the biggest quarterly update since 2006.
But this is no surprise to anyone who read our latest piece on the topic. What also shouldn't be a surprise, at least to our readers who read about it here first, but what will stun the general public are the two charts below, the first of which shows the amount of 90+ day student loan delinquencies, and the second shows the amount of newly delinquent 30+ day student loan balances. The charts speak for themselves.
This is how the Fed described this "anomaly":
Outstanding student loan debt now stands at $956 billion, an increase of $42 billion since last quarter. However, of the $42 billion, $23 billion is new debt while the remaining $19 billion is attributed to previously defaulted student loans that have been updated on credit reports this quarter. As a result, the percent of student loan balances 90+ days delinquent increased to 11 percent this quarter.
oh and this from footnote 2:
As explained in a Liberty Street Economics blog post, these delinquency rates for student loans are likely to understate actual delinquency rates because almost half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle. This implies that among loans in the repayment cycle delinquency rates are roughly twice as high.
We'll let readers calculate on their own what a surge in 90+ day delinquency from 9% to 11% (or as footnote 2 explains: 22%) in one quarter on $1 trillion in student debt means. For those confused, read all about it in this September article: "The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default" which predicted just this.
* * *
And so it's official: Pop goes the student loan bubble, as just confirmed by the Fed.
Luckily student debt is dischargeable in bankruptcy. Oh wait. It isn't.
Source: Quarterly Report on Household Debt and Credit, Household Credit Excel Source
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it wasn't all of them. Just many with a stein in their name that decided it was far better to confiscate wealth instead of working for it.
Honestly I am suprised I had to go this far down the thread to find the "its the Jews' fault" comment.
Nice derail attempt.
I think it's more likely that the cuplrits have a stein in their HANDS.
i would say that the current generation is well past the pace of $10T in 220 - some odd years, not that any of this has any bearing on what my original statement was
The banksters ripped us off while the criminal Bush was in office, and continued under hopeless changeless Obama. Don't blame the powerless. Besides, pre-1980 covers many generations. Specify which you hate.
The WWII generation isn't free from guilt. Allowing FDR to undermine the constitution didn't turn out to be such a good idea. He wasn't the first, we also had Lincoln and Wilson to thank for it, but he really did excel at pissing on the Constitution. Ike warned about the fascist melding of government and corporate interests in his famous "military industrial complex" farewell speech, but we didn't listen. Then we had the late comers. Kennedy touched it off with his executive orders, a end around Congress which would eventually create an imperial presidency and eliminate checks and balances. This idea was picked up by later presidents, especially under Bush and Obama, so that we now have unlimited executive powers in an emergency, and the president gets to name the emergency.
Pretty much everybody over the age of 18 is to blame, but especially the old farts.
upvote here, cause I couldn't there.
know your history, particularly the parallel history that isn't taught in school.
all i'm positing here is that the value of hard work and earning what you get is lost on a lot of these folks in their early 20's
Time and time again I hear people say that they 'worked their way through college' and the young people should do the same. The vast majority of people that I went to school with worked 30-40 hrs a week. There was a time where these hours were enough to pay for school, food, housing, and a little beer money. Now they are the norm to pay for food and a little beer money, the rest going straight to student loans.
The short jump that older people like to make from here is 'well you shouldnt have gone to school if you cant afford it.' That makes sense if you have the memory of a goldfish and the awareness of a brick wall. For those who fit either of those descriptions, let me remind you that every single adult that spoke about the issue during my teenage years advised me and my peers to go to university, no matter the cost. Not one time did anyone ever suggest that an education would be worthless. By telling a recent graduate 'you shouldnt have gone to school if you couldnt afford it,' you are expecting that, as teenagers, they were wiser than you and every single one of your peers and mentors.
Many of these kids worked just as hard as the people before them and most wont earn/work their way out of the service industry no matter how hard they try. It is natural to want to shift the blame and it is easiest to shift it to a demographic that is in no position to defend themselves but it would be wise to think about what you say. I remember every time a boomer tells me that Im struggling because Im lazy and I wont soon forget it when they need their diapers changed.
To clarify, I agree that there are certainly a lot of lazy ones in the mix. I just find it hard to blame them when they are simply playing the game laid in front of them. Ultimately, most end up with the same standard of living whether they put the time in or say 'fuck it, theres no reason to try.' As long as there is little opportunity to excel in the top end, only the foolish will try. Personally, Id rather call myself a fool than a leech but Im not the norm.
christ, man i'm definitely not a boomer and in the end i guess it really doesn't boil down to age either. personal responsibility, sound decision making and obligation was something that i was raised to respect and practice. these are ideas that should transcend all age groups. what kind of degrees are people getting that they can't pay them off, even with a $25k a year job? if a person continues to make poor decisions into adulthood (nice car, nice apartment, weekend trips, etc.) on that same salary it really becomes an issue because all of that SHIT goes on a credit card. if folks would learn to live within their means and repay debts and not look for the quickest way for a thrill or to make a buck, it would solve a lot of the issues we are seeing.
Ideas will only trascend age groups if they're passed on from the elders to the children.
I wholeheartedly agree that people (and our government) should live within their means. At this point, we may be too far gone to solve a lot of the issues we're seeing but I think living within our means could have prevented the problems in the first place.
Addressing your question about the type of degree, I see a complete mix. Half of college graduates in the last 5 years cant find full time jobs. Law students always tout that one-in-two number for people coming from law school and I know that my peers (BS in business administration, concentration in finance, 2012 graduation) have a significantly lower employment rate than that. It seems that engineering, CS, and accounting fare slightly better while liberal arts do a bit worse. The median first year salary for graduates from four year programs in 2009 and 2010 was $27,000 and is likely worse now. So the median person who is actually able to find a job just beats the $25k number you gave but half arent even able to find full time work. This is why students arent paying their debt.
In reality, every subsequent generation will look worse and worse. The old will bitch at the young for adding debt at a faster rate. The young will bitch at the old for passing laws to start it all.
To be frank, it is math. A simple exponential function.
All this generation x,y,z, fighting is just a way for you to bitch at each other while they keep milking the system.
Same as it ever was.
The whole student debt issue is moot because that extra debt (loans) was required by the system. Having them non-dischargeable was a way to make them available to anyone who wanted them.
So was the fed.gov picking up the debt baton in 2008 and keeping the aggregate debt curve on the upslope.
These false dichotomies (left/right, old/young,) are just to keep your eyes off the banksters stealing your lives.
pods
These false dichotomies (left/right, old/young,) are just to keep your eyes off the banksters stealing your lives.
So true. I fall for it, too (mostly due to dealing with stupidity).
Really, at some point, we'll all look around and find the source. Hopefully, b/c I'm getting too old for this shit.
I used to fall for the old/young argument as I read up on the founding of the FED, etc. But I did this from an electronic box that allowed me to access any information that I wanted. Those around in 1907 had almost none of the resources that we have now, so in reaction to a panic I can see how they fell for it. For a modern comparison, I give you 911.
And at the beginning of any ponzi, things go pretty well.
Our debt-currency is a ponzi scheme. The functioning of it is predicated on new debt to constantly be injected into the system to keep it functioning.
At the end is when things get pretty bad. Those alive now just have the misfortune as seeing the bad part.
But our vast array of wants available today might not have been there without reckless debt fueled expansion enabled by a debt money system.
It is a tough argument to entertain if you really think deeply about it.
pods
I agree with you, but... just to set the record straight, they were even being warned "back then"
The Coming Battle
By M.W. Walbert
First published in 1899, republished for the first time in 100 years! The Coming Battle documents from congressional records, newspaper reports and writings by the founding fathers and others, a chronology
of events long forgotten that shaped our fledgling nation from 1776 to 1899. Read about the manipulation of our money and its supply, the intentional creation of recessions, depressions and panics. The manipulation of the stock markets. The demonetization of silver.
Read excerpts from all the chapters
A breathtaking history told in the words of a contemporary witness to these events.The complete early history of the creation of the Federal Reserve. This masterpiece reveals how the banking money power and corporate interests, partnering with government, set up a framework to exploit American workers.
Lost for 100 years!
You can buy it here:
http://www.newswithviewsstore.com/mm5/merchant.mvc?Screen=PROD&Store_Code=NWVS&Product_Code=B1
Thanks for the links, haven't been to Devvy's site for a while. She is one smart cookie.
There were many who understood this even back then, and many were in positions of power and influence. McFadden (congress), and Lindbergh (senate I think) spoke in common terms about the dangers of a central bank and indirectly about fractional reserve banking.
Looking back we can see the playbook used, from the banking panic of 1907, to the banking commission. Why it was done (companies were self-financing expansion) and the ins and outs of it all.
But we have it at our fingertips today. Back then it was more difficult to find out who was a snake and spoke with forked tongue, and it was easier to hide conspiracies (Jekyll island trip).
I just hope that after this system collapses we can think with our heads, not our hearts and stomachs and set up a system that creates no special class, and lets everyone work it out for themselves.
pods
Good job adding $10 trillion to the Federal debt.
And just how the fuck are you post-1980ers gonna stop adding trillions to the federal debt?
The answer of course is you won't, because you have no say so in it just like we have no say so in it. Doesn't matter who you vote for, they're gonna spend like drunken sailors, just like it doesn't matter who we vote for, they're gonna spend like drunken sailors.
Don't worry - they are going to get schooled in the 3 R's ...
Recession, Rent-seeking and Redundancy.
I like to ask the cute ones if she left room for my cream.
Just tell them what I do, "I'd like a Tall Blonde, with room." Gets 'em every time... Especially the tall blondes.
You're paying how much for coffee and calling them stupid?!
With my Starbucks gold card I get free refills all day and free wifi and don't have to pay rent for an office...so money well spent I say...
It's an EBT card, isn't it?
lol
Haha, crusty old geezers like you are so funny. You honestly think young people will help you out in your old age? Good luck finding someone to change your bedpan.
Everyone gets old on a long enough time line sonny....
careful son, if your mom reads that she'll neglect to buy your favorite hot pockets next trip to the store.
LOL
Seems like Spyk just got dumped again for a middle-aged dude with a job, car and an actual home. Those abs will only impress the gals so much, living in mama's basement. Dork.
"Dont worry these bright college grads will figure this out...they even tell me so when they pour me my Starbucks"
They have figured out what to do.
No place to live ... go to school
No income ... get a student loan ((food stamps are not enough to live on)
Want to have a better life than living on the street ... go to school
Yes, in the USA school is free.
The system will blow up before those students can get a job. Stay in school. Its free!
For crying out loud, something has to POP! in this bubble laden world. Let's see the global debt bubble pop too!
Osama Bubble Laden
LOL. Nobody saw this coming...
Hoocouddanode?
Nova? Is that you?
The Great Leader Obama instructs us to not pay our loans! ALL HAIL the GREAT ONE!
The Great Leader Obama instructs us to not pay our loans! ALL HAIL the GREAT ONE!
Jamie Foxx say's thank God, and OUR LORD & SAVIOUR, Barack Obama.
That is one statement that will cost him dearly.
DosZap, Jamie didn't express it right. Obama, by being our Saviour, wants to be our Lord. After all, it was a financial crisis that brought Weimar Germany to search for their saviour from the economic storm. Obama is no less a charlatan....
FORWARD FOURTH REICH!
from the report:
However, of the $42 billion, $23 billion is new debt while the remaining $19 billion is attributed to previously defaulted student loans that have been newly updated on credit reports this quarter
• This increase has boosted the delinquency rate for student loans balances. The percent of student loan balances 90 or more days delinquent stands at 11.0%
.
Reading: it's fundamental!
And also this:
Delinquencies carry by cohort. Which means that the real delinquency rate was much higher and had been underestimated all along, which is precisely what we said back in September when we predicted the ~$110 billion in delinquent loans virtually to the dot.
What this means is that going forward all delinquent rates will be rebenchmarked higher.
Tyler if you had paid attention at all to the enlightening technocratic work of Herman von Rompuy you would know that you never let facts get in the way of progress! This will all turn out of fine as long as we keep saying it will. See, what's that easy?
Toss in some Costanza "it's not a lie if you believe it" and you can always have things work out.
pods
IT WAS THE MOOPS!
Only have to wait 20 years and it is then forgiven!
This is SO BULLISH!!!! FUCK YES AMERICA/BANKERS!!!
About time.
The word 'Taliban' means 'Students' -
At least the ones in Afghanistan aren't spending the rest of their lives paying off bank loans ...
Quite true, however, a career as a drone target is not so lucrative.
Thinking about writing a script for Borat vs. the Drones of Death.
But I can't decide if it should be a comedy, trajedy, documentary, an action movie or a cheezy Corman drive-in movie..
Hard to pay off your loans when druglords burn down the school before you graduate.
The Taliban volunteer their lives in pursuit of their goal. College student volunteer their futures in pursuit of their goal. Tell me, what is the difference?
This is why I worked two, sometimes three jobs to pay for college as I went. I graduated with no debt and have never had cause to regret that choice.
Poor bastards are on the hook for life, oh well what up this week on The Voice?
SANDY!
Good. Don't pay it, kids. Fuck em.
The government, at the behest of the people, bailed out Wall Street.
It's time that they actually bailed out the rest of us for once, and they wouldn't have to print a thing: just tell the big banks who made these unsustainable loans to young people for next to worthless degrees for jobs that don't pay shit, to pound sand.
I repaid mine without complaining (too much). Would a bailout by the Feds on all delinquent loans mean that I'll get a refund? Oh, goody!
Shizz: This entire game of fiat ponzi should be treated by us mundanes for exactly what it is. Let's play the elite ponzi game. We will never be among the elite so let's review this:
1 - Use their current ponzi system as a way to exchange their worthless paper for hard goods, food, etc while you still can. Keep a minimal amount of their junk paper around for daily needs, and don't keep it in a bank for fuck sakes.
2 - The traders on this site are nothing more than participants in the ponzi. They want it to continue because even though they may post about hating the system, they don't. They would be fucked if the ponzi collapsed and they could no longer short/frontrun/hedge/bet their way into paper ponzi profits. Their way of life would be changed for the worse if they had to do real work. If you are trading in the ponzi system, you are part of the problem. Pull all of your money out of the beast now... or remain in the ponzi and quit bitching about it.
The only way to beat the banksters and politicians is to leave them. Stop paying them via taxes and participating in their stock market ponzi. Slavery is a state of mind, not a menu choice.
This is no suprise. Everyone knows not to pay a stupid bankster back any money ever. Especially the students know this. They hate banksters.
Banksters know it too. Student loans are a form of subsidy to help the economy. Once they kick the can past the fiscal cliff they will start increasing the amounts that students can borrow.
Are Student Loans collateralized to the extent that mortgages are?
Yes.
So if these loans are collateralized, then how big is the thread? $1T? $2T? more?
I think student loans recently passed the $1 trillion mark. So it's pretty fucking huge.
I believe that is the just base value (total outstanding loans) - unleveraged.
$1T is gross outstanding. $120B in default is the number - but if it is collateralized and recollateralized - then we could be looking at several $T of problems - a la sub-prime. Plus, once students on the margins see the bailout - then they will stop paying which will double or triple the problem.
Yes.
$1 trillion base loans SLBSed, CDSed CDOed, and god knows what else up to $100 trillion likely, all backstopped by the Fed, so yes there will be bailouts, not to students, to banks, just like home buyers weren't bailed out, banks holding all the secondary market paper were (and still are).
Bernanke's buying $80 billion MBS every month to keep MBS from collapsing, but not bailing out one single home buyer.
Banker rule #1: No debt is written off.
Not dischargable in bankruptcy, so even more so. Collateralized with their asses for the rest of their lives. Better than the Mob's shy business any day.
They aren't collateralized to the extent Wall Street sold shitty MBS's all over the world. The gov now backstops a lot of the debt, and is going to own the future student debt market just like they own the mortgage market now (about 95%). Plus student loans are not dischargeable, even the private ones. Very unlike mortgage debt. But still a threat to the future of the economy. Unfortunately, all students did was vote for Obama en mass. If they really wanted "change", they should have shelled out a few hundred million like Wall Street did and who knows, maybe they would get a bailout too.
To put this in context for anyone who does not read charts, this is the same move that sent silver from $50 to $25, gold from $1900 to $1550, and AAPL from $700 to $525.
The only difference is this is not a chart of price, it is a chart of the underlying collateral - the payer. And if the payer ain't paying....
Umm...so should we start the countdown clock on Sallie Mae? 6000+ employees across the country.
If I was a day trader I would put a short on SLM. A big one.
I would have told my wife to stop paying her Sallie Mae loan a long time ago. But she put my name on it as a cosigner without me knowing. THAT WAS A NICE SURPRISE!!!!
Thanks honey.
how can you be a cosigner without, er, signing?
Oh, he signed. He just didn't read it first.
Doesn't matter. You're married so the debt is yours even without your signature. Don't get married without a credit check.
Nothing that a short diversion to the middle east with the military won't take care of....it's coming. Debt soldiers bitchez!
I can easily see .gov making student loan forgiveness reality upon enlistment in the armed services. Hell, they already pay for college for current enlistees.
So what if they end up maimed or killed protecting the banker's interest at least they have that hundred thousand dollar college degree in massage therapy to show for it.
But the forgiveness won't be on enlistment, it will be at ETS (end of term of service) with an Honorable Discharge. Gotta keep you motivated. Just don't call it The Draft, you volunteered for this program. Those soft, hi-speed Air Force jobs? They all taken. You get to choose 11B or 11C. And don't think you maggots are going to be officers just because you went to college ...
Indeed. The only debt relief offered to the student loan slaves will come with a commitment from your nearest armed forces recruiting office.
Said diversion will neither be short nor contained to the Middle East. Think global thermonuclear war. Do you want to play a game?
Shocking............LOL
Well how else can professors afford to go to conferences at Stanford on Asian American Comic Books?
I don't have anything against the comic book set or Asian Americans. But is there really utility for society in a bunch of academics discussing asian american comic books? I mean if people in a comic book club, comic book shop, or coffee shop want to discuss Asian American Comic books thats all good and fine. But I don't think the federal government should be subsidizing said discusssions with student loan guarantees.
mental bukkake
Nope...nothing to cut here..can´t cut the budget anywhere...
https://www.youtube.com/watch?v=kXpwAOHJsxg&feature=plcp
This video by Peter Schiff is so informative. BTW this is exactly what Fernando Ferfal says happened in Argentina's economic collapse who says were not in an economic collapse. Ha ha.
College has become a means of redistribution from the masses to the professors and staffers of the universities. Just cause they're not for profit doesn't mean a lot of people don't make their overly generous livings from it.
Thank you for putting the sources of your information in the article.
Immigration is the only way to escape student loans. We are now exporting educated young people.
Lol... educated young people ... you're crackin' me up.
Several of my friends who recently graduated with computer science and engineering degrees have moved to Australia, New Zealand, and Singapore.
Why?
I bet the agriculture majors who grow premier choom have already paid off their loans.
And they're all moving to Washington and Colorado as I type this.
Potheads, check the state disability payments available in each state first. There are better choices for an unemployable, disabled pothead. The pot they'll sell "legally" will be like the old 3.2% beer they sold on military bases as far as THC content and it will be taxed heavily.
Finally, what good is moving to a state that has no income tax when your SSI isn't taxable anyway?
- What's your major?
- Weedonomic Puffology
PhD in econ bitchez! You have two choices for your suma cum laudea degree and nobel prizes:
Point of fact its not the tax code that makes the loans non dischargeable its the bankruptcy code, Different title of the U.S. Code. If I were less lazy I would look up the specific section. Its likely in the 700s.
good point. may I ask a different question? Was timmay promoted into the "tanks in the streets" job, or was he demoted from the NYFED? the whole chancery glue confuses me.
Lateral transfer. Hmm, just a thought, did his house in NY ever sell?
You can get a mortgage at 3 1/2 %, but student loans are at 7%. Why does that make any sense?
Also in most states if you end up defaulting on the mortgage the bank reposses it and then can't seek a deficiency judgment. Even if they did seek a deficiency its dischargeable in bankruptcy. So what I learned in Law school is basically that I should have bought a Southern California house via a NINJA loan and flipped it 6 months later instead of or before going to law school.
Real property collateral with equity (post 2008) of 20%+ from the borrower with a quick flip to FNMA/FRE
vs.
Unsecured loan to someone who will spend four (and more likely five) years drinking beer, smoking pot, and chasing tail only to face very dim prospects of being able to apply their newly acquired Sociology degree to earn reliable income stream required to repay the loan.
Non-dischargable makes it "secured", at least the way banks view it.
It's why they made student loans non-dischargable, there's no tangible property for collateral, so they did the next best thing to maintain their value on the balance sheet, i.e. avoid mark to market.
Even if it goes total nonperforming, no money coming in, student left the country, banks can still keep it on the books at full value because it's non-dischargable in bankruptcy.
Yea, it's just another accounting gimmick to avoid recognizing losses.
Woohoo!! Another bank bailout in the making. Think of the stimulus...!! (sarc. off)
I would love to see a chart showing fields of study, loan $, job offerings, late payments, etc. Will never happen, too depressing...
...Where do I write my check to. soc sec, medicare, or student loan czar
"Bubbles " Corzine meets "Bubbles" Shapiro; in the Oil pit; No maas, no maas, no maas....!
This should come as no surprise to the government, the Fed, or the bankers since this is what they knew they were creating. After all, when these loans are backed by the government we have to borrow more to cover the losses.
The US Dollar is a ponzi scheme
http://online.wsj.com/article_email/SB1000142412788732335320457812737403...
Can you say 'indentured servitude'? I knew you could.
Time for a Profes-ster tax?
"Of course, teaching students has tremendous social utility, and it would seem crass to compare academics to vulgar bankers. But next time you are served by a waiter with an advanced degree or obstructed by clerk with an undergrad, with so much inequality in our society today, it may be worth pausing to wonder just where that half-trillion in student loans went."
http://asportinginterest.blogspot.ca/2012/11/bankster-tax-how-about-prof...
Obama will forgive the debt, we'll just tack it on to the federal debt, and then Zimbabwe Ben will whip out a fresh batch of Benjis to pay for it.
What's the problem?
They don't forgive the debt from the base, but they will bail out the institutions (Sally Mae).
What a way to guarantee a country has no future. Indebt your youth, the strength of any country and you eventually turn into a Third world Republic. But lets make sure we keep paying all those "brilliant" folks in Congress, millions upon millions for all they do for us.
We bail out evil bankers, but can't reduce the interest rates on the student loans. The bankers have possession of the notes on these loans, and they are going to send the indebted youth to war, or debtor’s prison. The students can take their pick.
Current student loan rates are less than inflation.
College basically became the most expensive porn set in history. Judging by the number of girls taking their tops off to pay for it.
Or they can work at the Tilted Kilt, massive tips there.
Ur just bragging.
You can have your student loans cancelled if you join the military and die in the upcoming WW3.
not if your parents co-signed !!!
Then we'll send the parents off to die!
No one could have seen it coming .....
Hey Yungsta's, when you Default on yer LOANS
There's yer Social Security
U never thought you would get....
Mother Fucking Deliquents!!!!!!!
Yo!
These are the kids that are going to be wiping your ass and shoveling gruel in yer mouth. did ya think they would get those health care jobs w/o paying or borrowing for a degree?
Sometimes I wonder is anybody actually thinking.
My wife graduated college ten years ago with almost no debt. It was affordable and together we could scrape together enough to pay as she went. Ten years later, her sister graduates from the same school with over $30K in debt. She worked during school also and had help from Mom and Dad, so in theory she should have had about the same level of debt. When she told me how much it cost per credit my head nearly exploded. I guess if the money's easy someone will figure out how to take it from you.
Not dischargeable? How do you collect from someone who doesn't have a job and there are no wages to garnish or assets to confiscate? Plus my guess is that someone with a student debt overhang who would potentially have their wages garnished would rather work a "cash" job like bartending or waitressing. All the non-dischargeable does is lower motivation to get an actual job and pushes one onto the black market.
Liability is seperate and distinct from collectability
Young people on campus enthusiastically and overwhelmingly voted for Obama....they can suck it. (no, I'm not a repub). Obviously, they deserve a refund from university if they continue to believe in "hope n' change, bitchez". Besides, they didn't seem to care about taking the money to buy iPhones, trips to Cancun, whoring, football games, etc. etc. etc. Let them default. See what happens to their (already) miserable lives. It will get worse. Nothing teaches like experience. Especially painful ones. Pain has a unique way of clarifying things. And a rather strong deterrent effect for future indiscretions, personally speaking.
Hope they were nice to their parents. They're gonna need their room back.
You aren't the first person to write the students should deault.
They can't default on the loans. Bankrupcy laws make it so even if someone claims bankrupcy they must pay back student debt.
Experience is a brutal yet effective teacher, it's just too bad it often takes multiple beatings for the lesson to set in.
The incredibly sad part is many of my peers saw this coming and actively chose to ignore it in favor of porn, football, iLife, Facebook etc etc etc
And now there are petitions to 'sell' back your degree for debt forgiveness, guess we'll see how that turns out.
Eventually the loans will be forgiven in exchange for some other form of control. They've got your kids. It's too bad. They're not letting them go. Look on the bright side: they might have simply drafted your kids. Instead you get to blame yourself.
debt slaves bitchez !!!
Or are the kids saying fuck you to the corrupt establishment
I want to hope this is the case and america can be saved
And this doesn't count the grads from 2012 who finished school in May. They START paying their loans in Nov 12. 6 month delay.
Holy balls this is getting awesome. There's not a more bloated industry in this country than higher Ed.
Watch: debt will be able to be discharged through public service. I'll refrain from giving the central planning think tank any detailed ideas.
That's really a good point, and I would say, probable
They won't cut any slack to anyone that is not a bank. They will pay the NAVY SEALs to come and get you, then pay to hold you in prison for 20 years before they do anything to let that debt go.
They won't cut any slack to anyone that is not a bank.
That's probably somewhere north of 95% right, by the total dollars.
public service or 'shovel ready jobs'
Is it really the scariest chart? or is this or this or this or this or this? Sorry, I've got scare exhaustion.
Has anyone else noticed this little "gem" from the FRBNY site?
Source: FRBNY Consumer Credit Panel/Equifax
As explained in a recent blog post, delinquency rates for student loans are likely to understate actual delinquency rates because almost half of these loans are currently in deferment or in grace periods and therefore temporarily not in the repayment cycle. Among loans in the repayment cycle, delinquency rates are roughly twice as high.
CTRL-P discharge bitchez !!!
Where are the parents of these people? I just graduated recently and I only have $12K in debt.
Many student loans were sold to other institutions, and there is no records of the loans taken out each semester. There is also no record of the interest and fees charged. Aren't the institutions who gave the loans obligated to provide a detailed list of all the loans given; when they were given, and all the fees and interest charged each semester?
I would stop paying also since obama is staying in office. He campaigned the first time that no one should have to pay for college tuition. I guess all the rich people are supposed to pay for it.
Look at the bright side- a lot more hot young poon will be entering the porn industry to pay off debt
Most strippers were given ballet lessons as young girls by their loving pairents. Now it is a job skill for stripping. Some college degrees have even less usablility as a job skill.
Started college (Iowa State) September 1970...tuition was maybe $250/quarter...I could work a part time job and still have beer money...things are certainly fucked now...