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Student Loan Defaults Soar By 36% Compared To Year Ago

Tyler Durden's picture





 

The growing debacle that is the US student loan bubble - nearly the same size and severity as the Subprime crisis at its peak- has been painfully dissected on these pages in the past, so at this point the only thing remaining is to keep track of the bubble growing exponentially in real time as it hits all time records, and eventually pops. Helping us to track the realtime growth is the latest data from Equifax, via Reuters, which confirms what everyone knows: things in student bubble land are getting worse by the minute. Much worse, because in just the first two months of 2013, banks wrote off $3 billion of student loan debt, up more than 36 percent from the year-ago period, as many graduates remain jobless, underemployed or cash-strapped in a slow U.S. economic recover.

From Reuters:

The credit reporting agency also said Monday that student lending has grown from last year because more people are going back to school and the cost of higher education has risen.

 

"Continued weakness in labor markets is limiting work options once people graduate or quit their programs, leading to a steady rise in delinquencies and loan write-offs," Equifax Chief Economist Amy Crews Cutts said in a statement.

 

The cost of earning a 4-year undergraduate degree has gone up by 5.2 percent per year in the last decade, according to the CFPB, forcing more students to take out loans. While other forms of debt went down, student loan debt continued to rise through the economic crisis.

 

Delinquencies have spiked in the last eight years, with about 17 percent of the nearly 40 million student loan borrowers at least 90 days past due on their repayments, a February report from the New York Federal Reserve Bank showed.

Er.... BTFD in the S&P (if there is a D of course - the way Kevin Henry is buying everything these days who knows)?

What else did you expect us to conclude here? It is painfully obvious by now that the farce will not end until the second coming of the stock, tech, housing, bond and, new entrant, student bubbles all pop spectacularly and at the same time, in the most epic Ben Bernanke organized New Normal credit supernova ever to be seen.

 


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Tue, 03/26/2013 - 16:48 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Simply print some moar, fuck you Bernanke.

Tue, 03/26/2013 - 16:58 | Link to Comment Supernova Born
Supernova Born's picture

If they had only invested all their tuition in the market and stayed home for the last 4 years watching cartoons they'd be set for life.

Prof. Bernank should have warned them about putting their money ANYWHERE but the stock market.

Tue, 03/26/2013 - 17:03 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"If they had only invested all their tuition in the market and bought some physical assets of real value, some revenue generating, then they would be set for life" - fixed.  Unfortunately, when fraud becomes the status quo, possession becomes the law.  I know a recent graduate who bought rental properties.  That investment has created a very real revenue stream.  He only rents to students if the parents co-sign to cover the rent for the term of the lease.  His other renters are retired .gov employees.  Smart kid.

Tue, 03/26/2013 - 17:08 | Link to Comment idea_hamster
idea_hamster's picture

So the name of the Chief Economist at Equifax that is telling us that all the student loan lenders are going to take “haircuts” on these loans is “Amy Crews Cutts”?

 

RLY?!

Tue, 03/26/2013 - 17:22 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Total bullshit, it depends what you are getting for rent and what the payment is on the loan. This kid bought total shit properties, all under 30K, fixed them up and rented them out.  As an added bonus, the local university is building the new Vet School across the street from neighborhood where his rentals are.  Sorry, I don't see what he can collect for rent going down anytime soon.  Veternary medicine will be more profittable than human medicine in the near future, well, so long as people like to eat meat anyway (horses included).

Tue, 03/26/2013 - 18:10 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

TD.  What?  No hat tip????

ihedgemyhedges

Vote up!

4
Vote down!

0

Well TD, good news is everywhere then as the student loan fiasco really gets rolling....

http://www.chicagotribune.com/business/sns-rt-us-usa-studentloans-delinquencybre92o11k-20130325,0,6746534.story

Tue, 03/26/2013 - 17:09 | Link to Comment Son of Loki
Son of Loki's picture

<<when fraud becomes the status quo, possession becomes the law>>

 

Possession is 10/10ths the law.

Tue, 03/26/2013 - 17:03 | Link to Comment James_Cole
James_Cole's picture

If they had only invested all their tuition in the market and stayed home for the last 4 years watching cartoons they'd be set for life.

The most concise summation of modern western 'economy' I've heard in a long time!

Tue, 03/26/2013 - 17:17 | Link to Comment Supernova Born
Supernova Born's picture

A good credit score is a terrible thing to waste.

Tue, 03/26/2013 - 17:09 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

If they had put the money in gold in 2008, they'd have ... say, Kitco down again.  That's happening a lot lately ;)

Tue, 03/26/2013 - 17:52 | Link to Comment azzhatter
azzhatter's picture

FUCK YOU BERNANKE- the day I read your obit is going to be a fucking party.

Tue, 03/26/2013 - 17:50 | Link to Comment azzhatter
azzhatter's picture

That means 74% are current. Better make more loans- Ponzi lives

Wed, 03/27/2013 - 02:00 | Link to Comment Vendrell
Vendrell's picture

Careful - soars BY 36%, not to 36%. So if the default rate was say, 3%, its now at about 4.1% of total loans outstanding. If the actual default rate were 36%, well..... God help the banks and Sallie Mae *snicker*

Wed, 03/27/2013 - 02:11 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The nearly trillion USD student loan market sees delinquency rates soar by 36%, while Obamacare will add an average of 34% to the average health insurance claims cost, with both student loan delinquency rates AND health insurance claims cost to soar to 80% (and beyond).

Good shit. It's not as if the extra $5,500 to $19,000 in additional health insurance costs per person or family, along with the massive adverse impact of student loan defaults, will....you know...further crimp an already reeling American Consumer....

....Lean Forward!

Study: Obamacare to Raise Average Claims Cost 32 Percent (and as much as 80% in certain states)

ABC News ‎- 4 hours ago By RICARDO ALONSO-ZALDIVAR Associated Press WASHINGTON March 26, 2013 (AP)

Insurance companies will have to pay out an average of 32 percent more for medical claims on individual health policies under President Barack Obama's overhaul, the nation's leading group of financial risk analysts has estimated.

 

The report by the Society of Actuaries could turn into a big headache for the Obama administration at a time when many parts of the country remain skeptical about the Affordable Care Act.

 

The disparities are striking. By 2017, the estimated increase would be 62 percent for California, about 80 percent for Ohio, more than 20 percent for Florida and 67 percent for Maryland. Much of the reason for the higher claims costs is that sicker people are expected to join the pool, the report said.

Tue, 03/26/2013 - 21:31 | Link to Comment Dingleberry
Dingleberry's picture

How does one get to short student loans like those MBS's? 

 

Tue, 03/26/2013 - 16:49 | Link to Comment MonsterZero
MonsterZero's picture

Written off student loan debt is simply tranferrred to IRS tax debt as the reciever of the write-off has to take that as income.  How are IRS defaults faring?

Tue, 03/26/2013 - 16:57 | Link to Comment LawsofPhysics
LawsofPhysics's picture

exactly.  Very hard to extract any sort of "tax" from the unemployed.  Do you here that?  That's the drums of war beating just a bit louder, hedge accordingly.

Tue, 03/26/2013 - 17:10 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Yes, we shall call this the "laugher" or "loser" curve. In jest of the laffer curve.

Tue, 03/26/2013 - 17:29 | Link to Comment McMolotov
McMolotov's picture

"Step right up, step right up! Enlist with Uncle Sam to fight the Sand People and have your student debt expunged forever! Channel your sense of patriotism to kill two birds with one stone — your debt and the evildoers who live on top of our oil!"

 

And if you should happen to die in the process, well that's a bonus dead bird at no additional cost!

Tue, 03/26/2013 - 18:25 | Link to Comment LawsofPhysics
LawsofPhysics's picture

The problem is that in order to actually "fight" anything, a whole lot of inexpensive energy and real inputs will have to be consumed.  Sorry, try again.  The available energy for consumption won't support tradition wars anymore.  Baring Nukes, enough people simply don't die fast enough either.  In addition, you still need to feed those drone pilots, so you really haven't "solved" anything.

Tue, 03/26/2013 - 16:49 | Link to Comment km4
km4's picture

banks wrote off $3 billion of student loan debt, up more than 36 percent from the year-ago period, as many graduates remain jobless, underemployed or cash-strapped in a slow U.S. economic recover.

No worries just add this stat to ones below and the ben bernank will cover it 

The Global Financial Pyramid Scheme By The Numbers | Zero Hedge

http://www.zerohedge.com/news/2013-03-21/global-financial-pyramid-scheme-numbers

The following is the global financial pyramid scheme by the numbers...

-$9,283,000,000,000 - The total amount of all bank deposits in the United States. The FDIC has just 25 billion dollars in the deposit insurance fund that is supposed to "guarantee" those deposits. In other words, the ratio of total bank deposits to insurance fund money is more than 371 to 1.

-$10,012,800,000,000 - The total amount of mortgage debt in the United States. As you can see, you could take every penny out of every bank account in America and it still would not cover it.

-$10,409,500,000,000 - The M2 money supply in the United States. This is probably the most commonly used measure of the total amount of money in the U.S. economy.

-$15,094,000,000,000 - U.S. GDP. It is a measure of all economic activity in the United States for a single year.

-$16,749,269,587,407.53 - The size of the U.S. national debt. It has grown by more than 10 trillion dollars over the past ten years.

-$32,000,000,000,000 - The total amount of money that the global elite have stashed in offshore banks (that we know about).

-$50,230,844,000,000 - The total amount of government debt in the world.

-$56,280,790,000,000 - The total amount of debt (government, corporate, consumer, etc.) in the U.S. financial system.

-$61,000,000,000,000 - The combined total assets of the 50 largest banks in the world.

-$70,000,000,000,000 - The approximate size of total world GDP.

-$190,000,000,000,000 - The approximate size of the total amount of debt in the entire world. It has nearly doubled in size over the past decade.

-$212,525,587,000,000 - According to the U.S. government, this is the notional value of the derivatives that are being held by the top 25 banks in the United States. But those banks only have total assets of about 8.9 trillion dollars combined. In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 24 to 1.

-$600,000,000,000,000 to $1,500,000,000,000,000 - The estimates of the total notional value of all global derivatives generally fall within this range. At the high end of the range, the ratio of derivatives to global GDP is more than 21 to 1.

Are you starting to get the picture?

Every single day, the total amount of debt will continue to grow faster than the total amount of money until the day that this bubble bursts.

Tue, 03/26/2013 - 16:55 | Link to Comment RichardENixon
RichardENixon's picture

Wow, that's gonna leave a mark.

Tue, 03/26/2013 - 17:00 | Link to Comment EmmittFitzhume
EmmittFitzhume's picture

This circus won't end until every short position holder takes it up the ass with Bernanke's fiat papier-mache baseball bat!

Tue, 03/26/2013 - 17:15 | Link to Comment Son of Loki
Son of Loki's picture

--Zero down loans;

--student loans;

--no-pay for 30 month car loans...

 

all the same bundle of wax....you can only defy the Laws of Gravity for so long with these shenanigans. Unfortuantely, the losses will be passed on to innocent thrid parites who had no hand in the creation of the risks and shared in none of the profit taking. 

Tue, 03/26/2013 - 17:16 | Link to Comment Banksters
Banksters's picture

If the Fed weren't qe'ing to the tune of 85 billion a month, I'm sure that debt demand would pick up the slack.  SNARK.

Tue, 03/26/2013 - 16:53 | Link to Comment The Big Ching-aso
The Big Ching-aso's picture

Hey man, at least they got a parchment that says a B.A. in Fizz Ed, man.

Tue, 03/26/2013 - 16:54 | Link to Comment fonzannoon
fonzannoon's picture

they wrote off 3 bil? That is one Pomo day. can't we dedicate one pomo day per quarter to this very serious issue? 

Tue, 03/26/2013 - 16:55 | Link to Comment caimen garou
caimen garou's picture

how can that be? the unemployment rate is dropping like lead ballons! comments bernake or your butt buddie krugman! the both of you together don't make a good 3 year old kid

Tue, 03/26/2013 - 16:56 | Link to Comment foodstampbarry
foodstampbarry's picture

This can't be. Just ask Cramer we have a booming economy. 

Tue, 03/26/2013 - 16:56 | Link to Comment Fezter
Fezter's picture

Keep them in brain washing school, drugged up and banging coeds long enough for us to get all the guns and ammo. Then we'll burst the bubble and let them out in the streets to do our bidding.

B.H.O.

Tue, 03/26/2013 - 17:03 | Link to Comment LawsofPhysics
LawsofPhysics's picture

You want American youth to actually do something?  Good luck with that.

Tue, 03/26/2013 - 17:23 | Link to Comment kevinearick
kevinearick's picture

laughter ensues...

Tue, 03/26/2013 - 23:39 | Link to Comment EscapingProgress
EscapingProgress's picture

Every older generation says the same thing about the younger generation(s). It's getting old.

Tue, 03/26/2013 - 16:56 | Link to Comment Soda Popinski
Soda Popinski's picture

damn.  I missed out on a free Master's degree.

Tue, 03/26/2013 - 17:59 | Link to Comment inevitablecollapse
inevitablecollapse's picture

why stop at a master's degree?! i just wrapped up my PhD in Gynecology from the British West Indies Medical College!  in all reality, this is a farce - we have a true skills gap in this country and music and arts degrees are no longer going to cut it along...i would like to see that student debt broken down by program type...

Tue, 03/26/2013 - 16:58 | Link to Comment Devils Advocate
Devils Advocate's picture

$3 bills is meaningless, let me know when it is $30 bills,  Although by than we will be on QE 5 and Ben will be buying up Student loan debt at an annual pace of $10 Bills a month!!  Problem solved

Tue, 03/26/2013 - 17:00 | Link to Comment howenlink
howenlink's picture

I'm not worried!  Putting money for my kids in a 529 College Savings Plan where it is "safe"!

 

<sarc off>

Tue, 03/26/2013 - 17:00 | Link to Comment brettd
brettd's picture

Thoughts on how to short this bubble?

Those who saw the sub-prime bubble made a mint....

Why not in this situation?

Tue, 03/26/2013 - 17:01 | Link to Comment Devils Advocate
Devils Advocate's picture

Because there will never be a default!!  Ben wll buy it all up!

Tue, 03/26/2013 - 17:15 | Link to Comment Golden_Rule
Golden_Rule's picture

You gotta be really fucking rich or have the most impeccably lucky timing to play that game.

Tue, 03/26/2013 - 17:01 | Link to Comment lolmao500
lolmao500's picture

How can they write it off if you can't get rid of your student loans under bankruptcy law??

Tue, 03/26/2013 - 17:12 | Link to Comment MonsterZero
MonsterZero's picture

So get this.. the bank who loaned you the money says.. this person isn't going to pay me back.. I'm going to tack on tons and tons of interest and fees... then I'm going to go to the government to get my loan garauntee.  Woo profit... and I'm going to send a 1099-C to this deadbeat and he's going to have to claim all this forgiveness as income on his taxes, haha. (This is part of the handshake/wink between gov. and private bank)

So the deadbeat doesn't really get discharged anything, they simply have to now claim it on their taxes as income... how that turns out is really up to the individual but at the end of the day... average tax payer joe is the one footing the bill to pay the bank their profit... but if you're here I'm sure you already knew this.

Tue, 03/26/2013 - 19:05 | Link to Comment lolmao500
lolmao500's picture

Thanks for the recap...

Tue, 03/26/2013 - 17:07 | Link to Comment sm0k4
sm0k4's picture

Fed loans can't be dissolved in bankruptcy 99% of the time.

Tue, 03/26/2013 - 17:03 | Link to Comment Tsar Pointless
Tsar Pointless's picture

Defaulting on student loan debt is unfathomable to me. Do these people not know you can get nearly endless forebearances and deferments on student loans?

Am I missing something here? I have had deferments twice in the past two years. What are these people smoking?

And can I find out, so I don't smoke the same shit?

Tue, 03/26/2013 - 17:13 | Link to Comment pacdm
pacdm's picture

How do get endless forbearances and deferments then?

Tue, 03/26/2013 - 17:23 | Link to Comment Tsar Pointless
Tsar Pointless's picture

I assume you meant to ask "How do you" get endless forebearances and deferments.

Easy: If you have loans consolidated through SallieMae, simply go on its web site and apply for either one. Then, supply the necessary documentation, if any, and voila!

It's that easy.

Tue, 03/26/2013 - 17:50 | Link to Comment pacdm
pacdm's picture

what would do,

1 pay the loan which is just as much as the mortgage, and also pay the mortgage, bills, buy food  for a family of 5

2 pay the loan and not the mortgage and feed the family and become homeless no credit and still the loan to pay

3 pay the mortgage and not the loan becoming bankrupt i.e no house no credit

4 pay both till saving are gone then become bankrupt

5 Get the hell out of the usa  

Wed, 03/27/2013 - 06:30 | Link to Comment fiftybagger
fiftybagger's picture

Don't worry, they've already thought of that too

http://www.newsmax.com/US/irs-highway-bill-passports/2012/07/05/id/444486

Tue, 03/26/2013 - 17:05 | Link to Comment The Carbonator
The Carbonator's picture

I am investing in the other precious metal.  LEAD.

Tue, 03/26/2013 - 17:07 | Link to Comment eaglerock
eaglerock's picture

Can't Dean Wormer put these debt deliquents on double secret probation or something?

Tue, 03/26/2013 - 17:09 | Link to Comment centerline
centerline's picture

What matters most here is the rate of debt creation or destruction.  When the rate turns net negative, the party is over and another bubble will be needed in a hurry.

Tue, 03/26/2013 - 17:10 | Link to Comment hannah
hannah's picture

all minortities should be forgiven as well as all women and anyone that is in the democratic party. only white males should have to pay...in fact they should have to pay for others loans also......if a foreigner had a loan we should forgive the loan AND pay them a lump sum equal to the loan amount...!

 

print print print print print print print print print print print print print

print print print print print print print print print print print print print

print print print print print print print print print print print print print print

print print print print print print print print print print print print print print print print...

Tue, 03/26/2013 - 17:12 | Link to Comment billhilly
billhilly's picture

The FED will soon be buying an new TBTF offered product, the Student Loan Backed Security.  Heck, the ECB will probably allow it to be used for collateral on a soverign bond.

Que Goldman

Tue, 03/26/2013 - 17:13 | Link to Comment centerline
centerline's picture

The new slave trade!

Tue, 03/26/2013 - 17:17 | Link to Comment max2205
max2205's picture

Go from moms to student loans to umemployment to disability to snap then soc sec.  

 

There fix.  The new amerikan dream.   Unless you get a government job  

Tue, 03/26/2013 - 17:27 | Link to Comment kevinearick
kevinearick's picture

So, what demographic is getting all kinds of loans and part-time jobs at $10/hr, on the margin....?

drowning ensues...

Tue, 03/26/2013 - 17:31 | Link to Comment Atlantis Consigliore
Atlantis Consigliore's picture

Send them all the LAW SCHOOL, sue each other in the ARSES.  what do you call  1 million lawyers unemployed 69 sandwiched with 1 million unemployed realtors 

What are they yelling?  By By Bye;  clean up use the law degrees as toilet paper.     

Tue, 03/26/2013 - 17:34 | Link to Comment Seasmoke
Seasmoke's picture

Bullish lowlife scumbag debt collectors and the bigger cocksuckers debt attorneys.

Tue, 03/26/2013 - 17:35 | Link to Comment Kiss My Iceland...
Kiss My Icelandic Ass's picture

"Student Loan Defaults Soar By 36% Compared To Year Ago "

 

Hmmm... do I smell another taxpayer bailout of the big banks ?

 

Tue, 03/26/2013 - 17:35 | Link to Comment AynRandFan
AynRandFan's picture

Student loan debt is imaginary.  The Fed buys it and makes it disappear.  The socialists are going to cancel it all anyway.  Who cares?  Everyone deserves a seat in the local marxist university.

Tue, 03/26/2013 - 17:35 | Link to Comment Seasmoke
Seasmoke's picture

How do you steal money from someone who doesn't have any ???

Give it to them. And if they are 19 , its like stealing candy from a baby.

Tue, 03/26/2013 - 17:37 | Link to Comment snakeboat
snakeboat's picture

and here I was thinkin you couldn't get out from under student debt.  Maybe they all went to work for the guvmnt now.  Didn't I read that they extinguish it after you're in service for a while?

Tue, 03/26/2013 - 17:42 | Link to Comment q99x2
q99x2's picture

That is such a negative way of looking at things. What actually happened is that Ben Bernanke printed up some extra cash so young and older people of the United States of America can, in the spirit of the liberal arts, enjoy life. What is the worth of the world without the appreciation of Shakespeare? 

And, it is not a default in the old sense of the word, because once Holder removed the rule of law, people, especially students, understood the full meaning of what he did and what logical conclusions could be drawn. The theft in Cyprus by central banksters further exemplifies what actions from here out shall be looked upon as noble. Default and the repudiation of debt are now the way of the Hero whereas in the past they were the actions of deadbeats. To starve the beast and prepare for the eventual battle against it are what good students today prepare for. They certainly aren't in college to beg a bankster or a globalist for a job when they graduate.

Tue, 03/26/2013 - 17:41 | Link to Comment Seasmoke
Seasmoke's picture

Bringing back the draft , cannot be far off.

Tue, 03/26/2013 - 17:52 | Link to Comment wonderatitall
wonderatitall's picture

no problems..obama is on vacation again...once a month for the shiftless lazy bastard from kenya...but that would be a stereotype....

Tue, 03/26/2013 - 18:23 | Link to Comment americanspirit
americanspirit's picture

So, obviously, the next step our Congress needs to take is to make defaulting on your student debt a jailable offense - unless you sign up for a combat role in the military, or volunteer as a human subject for nerve gas experiments, etc. I mean, why stop at preventing discharge of this debt through bankruptcy - if these spoiled little brats aren't going to pay their educational debts then they need to be taught a lesson. I'll bet Sheriff Joe Arpaio could straighten them out in a flash, starting with debtor's pink uniforms. How about it Congress - are you going to let these punks get away with gaming the system? That's your prerogative, isn't it?

Tue, 03/26/2013 - 18:25 | Link to Comment pashley1411
pashley1411's picture

You are laughing at their numbers, but its not the numbers that is driving the bubble.  

The government of fairy dust is financing the dreams of its supporters.   The government doesn't care about the money, its just going to print more, the supporters don't care about tomorrow, they live for today.

Math, finance, and economics is completely outside the loop.  

Tue, 03/26/2013 - 18:32 | Link to Comment NoWayJose
NoWayJose's picture

Instead if borrowing money for college, these kids should have invested in equities!

Wed, 03/27/2013 - 07:08 | Link to Comment combatsnoopy
combatsnoopy's picture

Equities can't pass physics.  Equities can't program software.  Neither equities or realtors could get through intermediate macroeconomics.  Equities can't write VBA or complex Excel formulas.  Equities can't ace organic chem or microbiology in order to get into med school.  But then again, apparently neither could 76 million BABY boomers who are flipping "equities" worth 3000* a student loan debt.

Me thinks one is green bitter with envy.

Tue, 03/26/2013 - 18:43 | Link to Comment jonjon831983
jonjon831983's picture

So how does a student default?  How does the bank count it as a default?

 

Did the student say no want pay now?  Or did the bank give up on them, wrote off the debt, and sold their loan portfolio to a collection agency?

Tue, 03/26/2013 - 18:53 | Link to Comment cynicalskeptic
cynicalskeptic's picture

so... when do we start with debtor's prison again?  or maybe indentured servitude?           welcome to the new serfdom.

Tue, 03/26/2013 - 18:59 | Link to Comment GOLD AND SILVER...
GOLD AND SILVER NATZI's picture

Since debts and deficits don't matter, just print enough money to pay off everyone's student loans and voila!  While we're at it, print up enough to wipe out everyone's mortgages, credit cards, auto loans.  Hell, let's print so much nobody even has to pay taxes!!  This is great!!

Tue, 03/26/2013 - 19:37 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

These loans may be "written off" for now.  When fortunes change look for the collector-man to be coming around.  The kids are not getting out of this with the wave of a hand.

Tue, 03/26/2013 - 21:40 | Link to Comment Vooter
Vooter's picture

"The kids are not getting out of this with the wave of a hand."

They might get out of it with the wave of a pistol or a crowbar, however...

Wed, 03/27/2013 - 08:29 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

An art history or gender studies major would have no idea what you are talking about. They're going to stay under the shadow of their loans and I'm glad for it. And my advice to anyone with a marketable degree: do not hook up with someone with a fluff degree or you'll end up paying off those loans.

Tue, 03/26/2013 - 19:55 | Link to Comment dark pools of soros
dark pools of soros's picture

This bubble can't pop since it is direct gov funding as a payment for services... There is no asset that crashes like housing prices, etc

The only thing that can crash are the univeristy's balance sheet if the gov stops funding these loans

That's like saying they'll stop food stamps too

Tue, 03/26/2013 - 20:47 | Link to Comment DYS
DYS's picture

My question is: HOW are people defaulting on student loans? Just not paying?

Tue, 03/26/2013 - 21:19 | Link to Comment WTFRLY
WTFRLY's picture

It's ok, defaulters will be able to get a job cleaning up all the discarded US dollars like prison labor.

Tue, 03/26/2013 - 22:29 | Link to Comment blindman
blindman's picture

@'Student Loan Defaults Soar By 36% Compared To Year Ago'
.
no way, no one could have seen that coming. think
about
that. never
mind
..
.
never
..
.
mind
..
never !
till the real world
comes along ....
till the real world
till the real world ...
...

Wed, 03/27/2013 - 00:09 | Link to Comment dunce
dunce's picture

Is this another statistical hide the truth game like when people stop looking for work or are given a disability retirement the are not counted as part of the work force? The banks write off the non performing loans so the amount of NPL on their books is reported as smaller per cent of the total? Is the govt. paying them  off on the guarantee?

Wed, 03/27/2013 - 07:05 | Link to Comment combatsnoopy
combatsnoopy's picture

Hey Quacks, the NAR has that money. 
Who enabled the realtors to rob people in need of shelter?  Hence the 300% Cost of living index?  YOUR elected government.

Since the dot com economy dwindled, the number of IPOs in this country dropped from 675 in 1996 to 19 in 2012 on top of massive trade and investment DEFICITS.  Students to blame?  Or legislators who wrote in SOX 404?

How do you fix a federal deficit without a private sector?  Oh I know!  Blame the vulnerable non-boomer minority!

Apparently whatever this libertarian vs neocon vs socialism thing isn't working out well for anyone.  

Since STAGFLATION is so good for the federal budget. 

 

Wed, 03/27/2013 - 07:04 | Link to Comment combatsnoopy
combatsnoopy's picture

I think I'll pay off my $20,000 student loan for a 4 year degree when Bernanke totally crashes the dollar. 
During high unemployment and high cost of living index, I'm sure you all really believe that real estate markets backed by counterfeit assets where boomers bought secondary properties worth $700,000 + equity lines and medicare for preventable conditions really "saved the economy".  Only because the very fiscally illiterate boomer real estate speculators are the voting majority. 

Wed, 03/27/2013 - 08:49 | Link to Comment Aegelis
Aegelis's picture

<--- Still owe $60,000 in financial aid that started accruing in 1994, got the job that the degree is for, found out biochemistry pays half as much as I was told it would. 

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