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Class of 2013: The Most Indebted Ever
70% of graduates had at least some debt according to the latest poll from Fidelity Investments but as the Wall Street Journal reports the average student-loan debt for a borrower who received a bachelor's degree in 2013 is $30,000 - an all-time record. With $986 billion of outstanding student loan debt (up 50% from Q1 2009) and unemployment rates running at or near all-time highs for the 16-24 year old cohort in this nation, it is little surprise that delinquencies are surging. The unemployment rate among graduates is 7.1% (which is considerably worse than it looks given that many are stuck in low-paid jobs) but it is those who don't complete college that face the greatest burden - the median annual income of a non-completer was $25,000 (compared to $33,900 for a degree holder), less than the average student loan debt. As the WSJ notes though, the 2013 class is unlikely to hold the 'most indebted class ever' title for long as 2014 enrollments and tuition costs look set to continue the 20 year trend...
Chart: Wall Street Journal
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Feed them debt. With a spoon, starting in Kindergarten. After naming him Ben, teach him to compete like a monkey, and when it fails again, kick him off the rock.
People are fed lies after lies and perpetually uncurious population is refuse to ask question, just accept pabulum.
What is question? Is it new TV show?
I expected my two children to work, get good grades and grants, while I supported them and provided transportation while they achieved their undergrad degrees. The oldest wanted a graduate degree and accrued either 10 or 15k of student debt to become a PNP, which is an insignificant amount.
No partiers or slackers on my dime...
Any one want to take a crack at what this means: " The Hong Kong Mercantile Exchange (HKMEx) announces today it has decided to voluntarily surrender the authorisation to provide automated trading services (“ATS”) granted by the Securities and Futures Commission (“the SFC”).
With immediate effect, no new orders may be placed and all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse."
Obviously it looks like it applies to their whole commodity exchange, but was the change made because they couldn't deliver the gold/silver?
You've been Corzined.
College is ok, but you need a degree in a useful field / some skill set.
Even with a good skill set, just the job economic situation is enough to slow you down.
Its tough out there - http://www.dailyjobcuts.com
,
Women's Studies wasn't what I thought it would be. Would you like to supersize that?
HK has several very flakey PM funds my Dad's friend says...the gubbermint there is cracking down on those...the solid ones (like GLD ) are very popular. My Dad's friend work there and says HK people only buy 1) physical; or 2) the GLD etf; or 3) a Bank of China gold account. They do not want their people "Corzined". Remember, the HK goiverment reimbursed many of its people for the Lehman's losses...I think to the tune of 70-80% of their losses. They don't want a repeat.
Like they say, "Ya gotta spend money to make money."
and they are happy to say that as many times as necessary to get your money
There are new institutions being created all the time that will address this issue by lowering the cost of higher ed and increasing the quality. Check out @oplerno on Twitter and follow the story of one effort in this area.
Something that is not sustainable, will not be sustained. Debt will implode.
http://ericsprott.blogspot.ca/
Hope and Change
Hope and Change
Hope and Change
No worries Mommy and Daddy will buy em BMW, and pay for IPHONE
Boris is nostalgia of Cold War. Learn to hate Ronnie and Maggie in school, but at least real enemy (socialism) is visible.
BMW confiscated for unpaid taxes, mommy and daddy in fema camp for health reasons. Skateboard and iphone to be provided free of charge.
Dear Har,
Thanks for writing.
It's so nice to know some letters are getting through.
Your father's recovering quite well after running into the door again.
I think they've figured out his medication.
He's a lot less angry.
The classes must be helping, too.
As for me,
I don't have to go to classes anymore.
They let me knit and watch movies
about how bad it is out there,
and about how fortunate we are
to be in here and safe.
Oh well, gotta go.
The movie's starting!
Love,
Mom
Amerika gulag is much nice than Russia gulag!
Not my daughter! She is graduating this month from Sarah Lawrence with only 10k in total debt. Smart girl got big grants. Brains skipped a generation..ha-ha. She won't stay in NYC as it is a soul killer even though she has "offers" from attorney firms and PR firms and....a bank. Nope, not staying there!
Glad to hear affirmative action is still working well for some.
And after the 4 abortions she doesn't have to worry about ever becoming pregnant again.
+1 Great news. Sounds like you were a good parent.
+1000 Grats on having a smart daughter and her graduation.
President Obama Speaks at OSU Graduation
Listen to the Hope & Change double talk.
Blah Blah Blah
Blah Blah Blah
Blah Blah Blah
Blah Blah Blah
Blah Blah Blah
Blah Blah Blah
Blah Blah Blah
A speech littered with pablum and that word again, democracy.
Not once does he say republic because he has no use for what it stands for. Let the indoctrination of young minds continue.
http://blogs.wsj.com/washwire/2013/05/06/transcript-obamas-commencement-speech-at-ohio-state/
Rather stick pins in my eyes
Not only that but a huge percentage of students realize the financial collapse is underway and that the civil war by the FEDS has started. They have no intentions of ever paying anything back until the banksters are locked up.
BIS is telling Ben Abe et all to slow it down think spillovers, let the system clear and exit :
Hitting the limits of "outside the box" thinking? Monetary policy in the crisis and beyond Speech by Jaime Caruana, General Manager of the Bank for International Settlements,
Regarding Bail-in's, FSB (the other one) and the big bad BIS. http://www.globalresearch.ca/g20-governments-all-agreed-to-cyprus-style-...
I saw that exact FSB Bail in text copied into ECBs resolution documents nov/dec 2012....they are getting ready now worldwide to pull the plug soon, back up the truck!
Yep. Giving all your cash to some random junkie on the street for safe keeping...It's cool, i wrote down his phone number! Sounds preposterous, but is it really that much different from handing control of all your money to a bank? The timeline might be different, but the way things are going the end result might be very similar. Only the junkey probably wont be getting his freak on aboard his new yacht.
From the Bendover himslef
Ben Bernanke Gives A Shout-Out To English Majors
Read more: http://www.businessinsider.com/ben-bernanke-on-the-value-of-culture-2013...
Fa cue bernang key
Yes Yes those Graduation Speeches does pay good, nice gift of gab . Ah ollege years, Spring Break, now it is all a distant memory and nothing to show for.
WE DID IT!!!!!!
Indentured Servitude (101) The Eagles - Hotel California (with Lyrics in the Description) - YouTube
Look the other way - Angels
https://www.youtube.com/watch?v=-UL3z5BmIgk
In college, one is no longer a student ( not for some time).
One is a CONSUMER.
College / Education is part of the SERVICE Economy.
We promise to :
1) Lie to you about your talents : smart kids now get a+ or 4.5 grade averages.
Middling kids get A s or 4.0.
Slower Kids get B s or 3.0.
Failures get C s and jobs on Wall Street if their Daddy is the right guy.
2) Lie to you about your prospects (as if your Daddy were the right guy, which chances are, he's not)
3) Give you a false sense of entitlement (you deserve the best because you are the best!)
4) Burden you with debt
------------------------------------------------------------------
The oldest profession in the world is master of the Consumer Service lie. College comes next.
All for education. If that indeed still exists.
*flagged for reprogramming
take on a bunch of debt to study math. lololololololol
They should have all gone to the 5 Minute University.
https://www.youtube.com/watch?v=DRBW8eJGTVs
"Class of 2013: The Most Indebted Ever"
And Elizabeth Warren wants to get them even more inebted with her FED rate loans. With even chaper debt, how much more will colleges raise costs to take advantage of a students ability to borrow an increased amount of money?
Parents Are Bribing Kids To Go To Boring, Booze-Free, Supervised Prom Parties
Read more: http://www.businessinsider.com/supervised-prom-parties-2013-5#ixzz2TgVi8aT6
If Elizabeth Warren had her way, every single 18-year-old in the country would go to college for "free." Which would mean that real cost would skyrocket while the quality of a college education would fall through the floor. Instead of the new high school, in Elizabeth Warren's America college will become the new 8th grade as hordes of third worlders sit around sleeping or surf porn on their EBT iPhones, waiting to receive a diploma that will entitle them to a government job or an affirmative action hire at one of the few non-government entities to survive Warren's reign thanks to their political connections.
You know what they say, wait til the government gives you something for "free"; then you'll really find out how expensive it can be.
Funny, we used to have free uni education over here. And the country didn't go broke. Now we have this system where you sign a blank cheque and a blank contract and trust the guvmint to do the right thing with it. The first year after fees were introduced, they were doubled. The next year they tripled (Yes, that's right - fees x 6 after two years). If you're smart enough to go to uni, how can you be dumb enough to sign a blank cheque?
Isn't loading students up with debt the same as killing the goose before it lays the golden egg? If the education is so good then gubmint will get the money back through higher income tax from graduates earning higher wages, or starting their own businesses. But now the graduates have debt plus no start-up capital. They're going nowhere.
"Free" but what percentage of the population actually attended?
A "free" uni education system combined with a guarantee like here in America that everyone who wants to get a four-year diploma should be able to = education inflation and a university degree not from a handful of 'elite' institutions being rendered both necessary and worthless at the same time.
To They trynna cat...
In the good old days, there were limited places and they went to the people with the highest grades. You had to earn your way into uni by proving you would study from your previous track record. None of this buy your way in 'cos some idiot gave you a few grand.
Let me guess.
You're not sure about Elizabeth Warren.
I'm not sure about anybody who makes this comment on radio :
http://www.huffingtonpost.com/2013/05/18/pete-santilli-hillary-clinton_n...
This is taking 1 st amendment rights to the limits...
Mein Kampf author would be proud of such diatribe.
Obammy wants to maintain a semblance of FDR's model of US : the Corporate Welfare State. Balance between big capital and big state spending, now on Obamacare.
This model was whittled down by Reaganomics's hyperderegulation to favour Corporates at the expense of welfare; and went even further down that road in NWO outsourcing via international labour arbitraging. It killed home bred manufacturing and labour.
Now with the world drowning in debt thanks to Corporate hubris and criminality, the GOP wants to keep corpocracy and scuttle whats left of welfare state; which is why Obammy as resurgent statist is now resisting.
Second term Obammy is now trying to dig in and save his low income electoral constituants. A little more debt, a little less government spending on MIC and some entitlement cutbacks like the chained CPI...hoping the tide turns on energy homegrown...
The question is will the continuing demise of the USD economy under QE allow him to achieve this?
According to Krugman and the raging bulls, supporting Ben's helicopter spending, the answer is : YES WE CAN!
Lets find out.
Parents Are Bribing Kids To Go To Boring, Booze-Free, Supervised Prom Parties
Read more: http://www.businessinsider.com/supervised-prom-parties-2013-5#ixzz2TgVi8aT6
punks. Proms are to go to and get stinking drunk and get laid if you can. What is our youth up to ?
When I hear coworkers talking completely matter-of-factly about putting away six figures for their kids' future college education, without even raising an eyebrow about why the cost of college has increased more than fourfold in 30 years, I feel like I'm living among "the stupids."
Same goes for the way people talk about the cost of housing; they see nothing strange about homes costing more than 10x the average person's annual salary, when a half-century ago they were barely 2x the average annual salary. They just take it all for granted.
The general population has the memory of a goldfish and the questioning ability of one as well. Each new generation that is born and grows up just takes for granted that, e.g., everyone was always in debt, huge swaths of urban America were always unlivable due to black crime, etc. They never bother to wonder if things used to be better. In such an instance, how can one blame TPTB for taking advantage of us?
Well said. And with that said, I think we can agree that TPTB are only TPTB because they were/are allowed to be. Isn't it still within our power to change that? Or, as they would have us believe, is it too late?
Would the World truly end without them? I doubt it.
They trynna...,
You have good insights to what is going on. Appreciate your commentary. Great to see another brother in Christ.
Thanks for the kind words friend. Believe it or not, I used to be a die hard liberal. I thought I knew everything. Then God kicked me down a figurative flight of stairs, forcing me to reassess everything from race to economics to morality. When I got to the bottom there was a New Testament there waiting for me, and things have never been the same.
Amen, man. God's Word is what we always have, the only thing eternal. As the hymn goes, On Christ the solid rock I stand, all other ground is sinking sand.
Trusting in God is the only way to overcome the deceit out there. I see so much ecumenicism and perverting of the Word to appeal to the fleshly desires and new age self esteem, health and wealth, etc. The truth is that we are sinners, the wages of sin is death, and only faith in Christ saves a person. Not good works. They are outward manifestations, and God tells us we shall know others by their fruits, but faith alone saves. It is a free gift of salvation and we were bought with Christ's blood.
I probably haven't had near the experience it sounds like you have had, but as a college freshman, I took ownership of my faith. I also woke up to the sham that is this whole economic system after taking a few econ courses (now am a junior almost done), and found a home with the Austrian school, and that led to finding ZH. I'm thankful to God He has provided me with awareness of how much a house of cards this all is, and that I don't have to be afraid of anything because He has already defeated Satan. It will get hellish here on earth, but the only thing I fear is God Himself.
Trust in god? Did it ever occur to you that all this crap disucussed on ZH happened under gods supervision?
Housing is A cartel controlled through subsides and onerous regulations. The
regulations do little to nothing at this point, toxic materials that degrade quickly are standard, as the epa doesn't even bother to test whether the acrylic substitute used might possibly degrade or give off harmful substances when put under consistent bombardment by the massive amounts of human made and applied substances which cumulatively build up in the water supply, unaffected by filtration. And yet you still pay "market rate", for a mortgage or rent (while taxes increase to cover municipal borrowing costs) as foreclosures are flipped to massive institutions and invariably the fed.
Not to mention fire alarms that go off simply when you turn on your (brand new!) Chinese made electric element range, because the materials used in making them give off toxic fumes.
I can't even believe half the shit that gets passed off on this retarded country, water mains under a road with 5/16 wall thickness pvc? You can crack that shit by dropping it a couple feet, let alone continuous cycling tensions.
It's retarded, the people in control of these decisions have degrees in nothing, and no goddam sense.
Fuck it.
(in defense of pvc, your water pressure will drop before the sinkhole takes out the street, so at least it gives you early warning).
Add to that McMansion built in tropical regions that can barely stand up to a Cat 1 storm. It's not just the flimsy structural construction, it's not just the age and deterioration, it's not even necessarily the materials permitted, it's the design shape of the average McMansion, which is not at all optimized to withstand continuous straight-line +200km/h winds with up to 40% stronger gusts. Nor can what's affixed to the structure stay there.
And what's with cities on barrier Islands which are nothing more than temporary sand piles, that can not under any circumstances be relied upon to be there after any self-respecting cyclonic storm passes over it? How many storms does it take to realize, learn, and enforce such basic lessons? The truth is that what needs to be done to build much more resilient and safer houses is already known, it just isn't done. Style is MUCH more important than substance. How long are realtors and developers going to be permitted to get away with selling people the false vision of a wonderful seaside paradise? What was it last time, $60 billion in relief that Jersey wanted?
"But where will the casinos, gamblers, tourists and the whores and pimps live? Where do you suggest they go? Do you know what your doing to my land valuation, asshole? Why don't you stfu, we chose to live here, and it's our right to get completely wiped out!" ... blah blah.
Absolutely, as long as there's zero public reconstruction money afterwards, as it's not like they can assert their losses were through no fault of thier own. Plus zero insurance coverage. Plus zero obligation to pay for any form of public infrastructure on any barrier Island and tropical foreshore, including bridges, schools, electricity, water, sand-dreading, sand re-nourishment, protective groins. If so, then by all means, live there happily, and good luck to you, I hope you have a great life, and lots of luck.
Because I sure do not intend to work my arse off paying taxes for years, just to bailout your dumb-ass (and those in Cali better hope the LA SF 'big-one' is a ways off, as LA will not be getting rebuilt, any time soon).
noless, glad to see your comments. I thought I was going nuts when i saw the materials they were using on these track houses...seriously knotted wood, crappy foundation, poor insulation, and on and on. In 5 years they willneed lots of maintenance...the costs will eat the owner alive. I noted the solar window guy in that neighborhood door-to-door and stopped my car and stopped him. He said many of the houses in that area are needing $400 - $500 a month in air conditioning they are built with paper thin walls. How can an owner afford that? How about a Landlord?
It's a mess.
The closest term I've been able to use to describe the phenomena of which you speak is "establishment gobemouche."
There is a literal blind trust in the establishment to inform the population of anything important.
Note how few people ever discuss anything original. They always talk about the establishment presented them - and typically without question.
The school system was rigged to do this - startpage.com search "John Taylor Gatto podcast" and Youtube "The Ultimate History Lesson" and "John Taylor Gatto on Coast to Coast."
Schooling is engineered to crush a true liberating education.
Anyone done a cost benefit analysis recently?
I can't believe private schools are even worth it any more unless you're parents are loaded or connected somehow. Maybe if you get a partial or free ride too.
Otherwise you're up to your eyeballs in debt and digging your way out forever or going bankrupt in a crap economy
Harvard $40,016.00 per year - tuition only
If student fees go up, there must be an over supply of students, which suggests an over supply of graduates, leading to too many people applying for too few jobs, driving down wages, meaning it is not worth going to uni in the first place. This is economics that you learn in high school. Is it really our brightest who go to uni?
If a course is profitable, your employer will actually pay you to do that course (okay, maybe not a four year course ... ). One of the inequalities in this world is that some people, trying to increase their chances of getting a job, will pay with their own time and money to do a course that will make themselves more valuable in the work force, but still fail to obtain employment. But then others already in the industry will do the same course, paid for by their employer, and on full wages. There is a strong case for picking the right boss first, then worry about increasing your qualifications.
$30,000 ain't shit to a student who borrowed to the hilt for a private university. That loan is over $100,000.
I am trying my best to find out who forced debt on these grads and somehow the trail keeps leading back to the students themselves. Much like all those homepurchasing "victims" who claimed to have been "forced" to sign up for loans they couldn't afford.
I had about the average debtload upon graduation and paid it off within a year. Most of my fellow students who whined later about their debt were blowing their borrowed moneys on alcohol, drugs, and partying, which interfered with their studies and thus had them have to attend for a year or 2 more than I (which they borrowed more money to do).
So they fuck around and waste time, they blow their borrowed money, and I am supposed to feel bad for them. Not gonna happen.
To Smeg W:
Who is to blame? The idiots who borrow too much, or the idiots who lend to idiots? Over the years the blame shifts between the two camps, though obviously, at this stage, both sides are to blame.
The trouble is that the idiots artificially increase demand, driving up prices and pushing sensible people out of the market. This can only happen because banks have found a way to lend to idiots and get away with it.
Congrats on keeping your finances in order, nice to hear. I'd like to go back to uni one day. When I figure out how to pay for it. Could take me a while. (Plus I've got other projects on the go at the moment.)
One thing I learned from uni is there's no reason to do it again. The purpose is to get the credential -- done.
Now all you have to do is pick your favorite subject and BUY THE FUCKING BOOK. You can get the same one taught in the class... often used. Or you can borrow it from the library.
When you've read everything in the library, ask someone what to do next. Sounds like you need a lot of help.
What about the idiots that demand a college degree whether the job requires it or not and then howl that prospective hires require higher compensation to pay off said degree? The sense of entitlement emanating from clowns who don't understand the job, are too lazy to train in house, or don't want to pay what things cost is overwhelming.
Count me as unsympathetic too. I work in an area with many new grads. Most of them are seeking a second degree having discovered their first degree will get them exactly nothing in that field. I frequently talk to grads that have 60-80K in loans, and they make $10-23/hr. Many of them are holding out, hoping for debt forgiveness (more likely), or for their earnings to increase (less likely) significantly. I'm sure the debt forgiveness angle hasn't escaped the attention of politicians. Print more bullshit fiat, buy more votes. Ugly.
To Edelweiss
Institutionalized. Some of us who study too much, don't spend enough time with people, forget how to communicate. Or just being away from people for so long stops us from fitting in - don't know current events, can't maintain small talk -. Knocking on a door, asking for a job becomes really scary. ("They haven't got time for little me. They'll get annoyed if I interrupt them. If they wanted someone they would advertize.") Conversely, when we do knock on doors (I've knocked on hundreds), some people really do look at us like we're some kind of moron. I maintain that some of us who study too much should be sent to uni as a sort of "disability pension" (mentally / socially retarded). Bosses don't want us anyway. Hard to fit in with co-workers ... At least at uni we may eventually make important discoveries that benefit mankind....
Yes, some have been indoctrinated to believe that if you can't get a job then it is because you don't have enough qualifications. Their only crime is to believe their superiors. Remember what they have been told for the last 20 years - "Study hard, get good grades, if you don't have good grades then you won't get a job". They fulfilled their side of the bargain and yet they are being told that they are still not good enough. So they brainlessly go back to their indoctrination, "Need good grades / qualifications to get a job." You progress through school by getting good grades. It's unbelievable for them to think that you can get a job with substandard grades - even though it happens all the time. In the real world, it's not what you know, it's who you know. (Even engineers have claimed that their most important tool is their address book.) The people who study too much need to meet more people, not do a second degree. It's very hard to convince them that they need to know more people, not more stuff, because for the last 20 years they have been judged only by performance, and never given an even break just because they know the right people.
PT indoctrination started while the children were babies. Their parents bought the education thing lock, stock, and barrel. Certain degrees do pay well, the problem is most want an easy degree. They graduate buying inot a degree will help you earn more in your life time. Then real life smacks them in the face as they look for a job in their field finding out everyone else has the same darn degree.
What boggles my mind is the parents never thought to use some critical thinking skills to help their children actually pick a field that is in demand.
Dead Can Dance - Indoctrination
I think we're all on the same page. Bitchez
They hired the money, didn't they?
C. Coolidge.
Everyone complains about the baby boomers and how their increased retirements will increase pensions blah blah blah, but doesn't it also work the other way? Doesn't that imply that there are less children to educate, and so the nation's overall cost of education is decreasing? If the baby boomers got cheap / free uni, wouldn't it be even more feasible now? Not only that, now we have a huge demographic near retirement age i.e a huge number of people with a lifetime of experience ... meaning that we can choose the best to be educators ... our teachers / lecturers should be of the highest quality since, since, ... forever! And the excess supply of potential teachers means that they shouldn't cost too much either.
I'm 100% Gen ex Not the turbofan thrust rating for BOEING.
"If the baby boomers got cheap / free uni, wouldn't it be even more feasible now?"
It will indeed still work, but first you have to make sure that both Europe and East Asia have been reduced to rubble.
I don't have any fucking kids, why would I do something that stupid? There is no future in the future, at any price.
I do have nieces and nephews. One niece got a degree in music and graduated this year. I believe the price tag on that one was north of 40k which of course her parents picked up the tab for (painfully I hear). She's going to Europe to futher her fun for a year or so then coming back to presumably look for someone to support her (her parents are hoping it's not them, lol).
One nephew studied physics, but that turned out to be too hard for him. He ended up with a different degree which my tight lipped family don't want to talk about. He currently sells used cars, but at least he can afford an apartment and some decent weed to forget how bad his future looks. His debt will take 20 years at least to pay off. That's if he decides to pay it.
The other children of my siblings never made it to college and still live off mom and dad. Their debt is high for their age, but it's just consumption. It's hard to look rich when you're poor!
It ain't like the old days. I never finished college but managed to earn a living. Good enough in fact to retire at 48. Those days are gone. Americans can no longer expect that priviledged standard of living that I was blessed with. The word got out, there's a lot more competition now. Welcome to the world graduates, you're late to the party.
Retired at 48. On what, a gov pension?
I wish. I was never smart enough to get that government job when it was easy. My ex did though, she's sittin' pretty.
I retired on the real estate bubble, so in effect the credit really does need to go to the government and Mr. Greenspan for making that possible... :-)
Milton Friedman quote therefore Krugman not likely to understand what you said.
All that debt to be taught marxism, social justice , and social ethics. College is complete and utter bullshit. I wonder why they stopped teaching critical thinking.
So do you people actually work, or do you just sit around and bitch about Obama all day?
graduated in the sciences with $86k debt and three degrees....Uber Stupid...had to work two jobs and many weekends for several LONG years to pay that off.
I'd do it different now...still major in a 'hard science' (b/c I love it!) but would go to a cheaper school and eat noodles, eggs (the cheap, non-organic hormone/antibiotic filled ones) and sardines (the cheap Moroccan ones) alot more during college. Maybe try to find a wealthy girlfriend too (aka, Sugar Momma) instead of dating those knock-out, high dollar long-legged, Big Titted broads. They're too expensive.
I will emphasize to any Yutes reading this tthat the Degrees are only a tiny portion of success....tons of sweat and hard work are an absolute in this economy (and Luck)... unless your daddy's name begins with Hank and ends with Paulson.
Good Luck!
Huh I just took the shittiest job available and learned from experience, no debts necessary!
Okay, maybe a dumb question. I read all the time that student loans can not be gotten rid of through bankruptcy. Thus they can't be avoided.
So if all these people are delinquent, and not paying back the loans, what happens to them. Do they just accumulate more debt via the interest and when and if they ever get a job they are forced to begin paying again?
Look, 30K for a student just out of school? Man that is crippling by any standard. A graduate needs a car, he needs an apartment, food, clothes, phone, health care etc. etc. Add a cripplingly large monthly student loan payment! Jesus, talk about debt slaves! Yet I have seen charts of college costs, and they have been beating inflation by more than double every year for decades. Once government gave out oceans of student loans, the colleges went nuts on tution and fee. Look at what they charge for text books! Insane.
America's elites are probably very happy to impose this system where employers will not touch a person without a degree at the same time that degree in many cases is not related to the work. It is the modern version of the "union card", either get one or you can't work. Then the employee is known to be deeply in debt for the degree, thus a compliant wage slave because he/she is already a debt slave for ages just on the student loans. American kids are made into debt slaves before they can even try to get a job. I bet some forces in this nation love the preent system. Like banks, government and employers. Better our kids be compliant desperate debt slaves right from the get go. America, the land of the free? Sure, for some with familiy money it is. The rest are being pushed into serfdom and debt slavery.
Eventually, non-repayment will lead to IRS liens for public loans.
My outstanding loan balance has tripled since I defaulted in 2005-6'ish.
I will never be able to repay, and if I somehow do manage to get a decent job again, and the IRS starts garnishing, I will just refuse to work and go on welfare.
So people know. Posting [screenshots] on Z/H is available, if you know the code.
Some education is SOOO expensive.
Some education - like Zerohedge education is a bargain.
Well it seems that buying education would be like buying a car, house, or any other asset--you get what you pay for. So on a macro level wouldn't it seem that this current education cohort will immediately solve the main street to wall street disconnect and several other thorny issues that have stymied the fairly recent lesser cost cohort?
Peter Schiff asks: Is a college degree worth it?
http://www.youtube.com/watch?v=kXpwAOHJsxg
Going to crash and sooner than later but average is one of the most useless statistics around to evaluate a data set. It tells you very little about the underlying data sample. Much better off with even the median or even a simple distribution chart of the data sample.
Um, this is all so yesterday's news. Obama's Pay as You Earn program solves the problem (/sarc). The loans will be (mostly) repaid by you, the taxpayer. Not the students who took them out:
http://online.wsj.com/article/SB1000142412788732405970457847122343609687...
I apologize in advance for the blood pressure spike that this will cause any readers.
We are so utterly f***ed.
I would say the best course of action would be a Hugo Chavez approach and nationalize the private institutions and seize their endowment funds, or refund students' tuitions if they have not found work within 3-6 months of graduation.
Many colleges (especially private ones) continue to get federal student loan money even though their 4-year graduation rates are pathetic and are well below 50%. It is ridiculous the federal gov't continues to essentially directly subsidize such businesses. If a university can't graduate at least say 50% of an incoming freshman class in 4-years, that university shouldn't continue to receive federal funds in the form of federal student loans.
It would also go a long way too if there was credible information available that was mandatory to be reported on what the job replacement rates were of universities were for their graduating classes within 12-months at full-time positions and what their salaries were. It would go a long way to helping students determine addressing some of the asymmetric information problems that are rife in higher education.
Sad reality is that we have set in motion largely through our immigration/free trade policies the past 20+ years a future where most new jobs in the future are going to be in low-paid occupations and no politician in either party has the temerity to acknowledge this (despite the BLS labor projections) and reengineer the education system to address these changes. ]
There are still plenty of people who should go to college but there are also a ton of people who have no business there and should be receiving training/more targeted education that will be commensurate with their employment. One of the biggest lies in America today (and always has been) that you can be whatever you want to be if you work/train/study long and hard enough. This is a whopper of a lie whether it is in sports, entertainment, or even in academia and certain professions where most people simply don't have the prequisite natural ability required.
The student debt bubble, the answer to the question, "What happens when government creates a way to loan money with no chance of default." What, you want $100,000 for a Masters in 18th Century Russian Art? Sure, here it is! And if all this easy money rapidly drives up college costs, don't blame us!
If the easy money dried up, public college educations would once again cost what they used to cost - what was payable with a part-time job at a fast food place.
well at least they unemployment free time to look forward to.
Is $33K really that much of a difference than $25K? That is unbelievably pathetic and both, on average, will be living at home for the rest of their lives.
"averages" mean nothing in today's economy. If the average wage remains steady, it's because 5 million people go down $5/hr, and one single hedge fund manager makes $100MM more than last year.
That small of a loan is easily paid off over the 10 years you are given and low rate. Probably only $100-200 a month.
Just get any fucking job and pay it off, you lazy, whining POS. Maybe you'll have to go without (oh, the horror!) an iphone or cable for a little while. Others on this thread paid off much larger loans ($86k) working 2 jobs. So fuck off and live on welfare if you think that's a great life. No sympathy.
Nope. You will pay it off, douchebag. Enjoy.