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24% Of Millennials "Expect" Student Loan Forgiveness
It appears the concept of no consequences is now deeply embedded in the American society. As Student loan debtloads surge ever higher - and opportunities grow ever lower - NBC News reports a rather stunning 24% of Millennials said they expect their loans will ultimately be forgiven, according to study released Wednesday by Junior Achievement and PwC US. That helps to explain why delinquency rates are at record highs - aside from the massive debtloads and no high-paying jobs - as students see bankers rigging every market in the world with little to no consequence, one can only imagine the lessons being learned.
Heavily delinquent student loans hit a fresh record high of $124.3 billion, up from $121.5 billion in the prior quarter.
NBC explains...
That could be a lot of accumulated debt, considering the average amount of cumulative student debt for undergraduates in the class of 2012 was $26,885, according to a recent Pew Research report. The average debt for 2013 graduates is expected to be even higher.
"It's a scary statistic," said Jack Kosakowski, president of Junior Achievement, which co-sponsored the Ypulse survey. The survey conducted for Junior Achievement, "Millennials & College Planning," did not address why the students thought their loans would be forgiven, and it was the first year the question was included in the survey.
The report also found that 60 percent of millennials surveyed said financial aid is a deciding factor in their school choice and 21 percent said the cost of college was their family's main financial problem.
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Given the following, it is hardly surprising they hope and expect for forgivness...
The following are 18 sobering facts about the unprecedented student loan debt crisis in the United States…
#1 According to the Wall Street Journal, the class of 2014 is “the most indebted ever“…
As college graduates in the Class of 2014 prepare to shift their tassels and accept their diplomas, they leave school with one discouraging distinction: They’re the most indebted class ever.
The average Class of 2014 graduate with student-loan debt has to pay back some $33,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of web sites about planning and paying for college. Even after adjusting for inflation that’s nearly double the amount borrowers had to pay back 20 years ago.
#2 In 1994, less than half of all college graduates left school with student loan debt. Today, it is over 70 percent.
#3 Approximately 15 percent of graduate and professional school students leave school with student loan debt balances in the six figures.
#4 At this point, student loan debt has hit a grand total of 1.2 trillion dollars in the United States. That number has grown by about 84 percent just since 2008.
#5 According to the Pew Research Center, nearly four out of every ten U.S. households that are led by someone under the age of 40 is paying off student loan debt right now.
#6 The median net worth of young households that have student loan debt is 20 percent lower than the median net worth of young households that do not have any student loan debt and that are led by someone with only a high school education.
#7 Among college educated people, the median net worth of young households that do not have student loan debt is seven times higher than the median net worth of young households that do have student loan debt.
#8 In 2008, approximately 29 million Americans were paying off student loan debts. Today, that number has ballooned to 40 million.
#9 Since 2005, student loan debt burdens have absolutely exploded while salaries for young college graduates have actually declined…
The problem developing is that earnings and debt aren’t moving in the same direction. From 2005 to 2012, average student loan debt has jumped 35%, adjusting for inflation, while the median salary has actually dropped by 2.2%.
#10 According to CNN, 260,000 Americans with a college or professional degree made at or below the federal minimum wage last year.
#11 Even after accounting for inflation, the cost of college tuition increased by 275 percent between 1970 and 2013.
#12 Debt for law school students has risen dramatically over the past decade or so…
J.D.s certainly don’t come cheap. It’s almost unheard of to attend law school without taking out significant loans. What’s more, the average debt load is mounting: in 2001-2002, JDs borrowed on average $46,500 at public law schools and $70,000 at private law schools; by 2011, those numbers rose to $75,700 and $125,000, respectively.
#13 Last year it was being reported that 34.9 percent of all student loan borrowers under the age of 30 are at least 90 days behind on their student loan payments.
#14 One survey found that 27 percent of those with student loan debt moved back in with their parents after college.
#15 Another survey found that 70 percent of all college graduates wish that they had spent more time preparing for the “real world” while they were still in school.
#16 Student loan debt is causing many young Americans to delay getting married. The following is from a recent NBC News article…
While there is no specific data on student debt-related delays to marriage, a recent study by the Pew Research Center shows that a record number of Americans have never married. The study found the median age at first marriage is now 27 for women and 29 for men. In 1960, the median age was 20 for women and 23 for men.
#17 Many Americans are not even using most of their student loan money to pay for college. Instead, many are using much of that money to pay bills or stock the fridge…
Take Ray Selent, a 30-year-old former retail clerk in Fort Lauderdale, Fla. He was unemployed in 2012 when he enrolled as a part-time student at Broward County’s community college. That allowed him to borrow thousands of dollars to pay rent to his mother, cover his cellphone bill and catch the occasional movie.
…
Tommie Matherne, a 32-year-old married father of five in Billings, Mont., has been going to school since 2010, when he realized the $10 an hour he was making as a mall security guard wasn’t covering his family’s expenses. He uses roughly $2,000 in student loans each year to stock his fridge and catch up on bills. His wife is a stay-at-home mother who also gets loans to take online courses.
“We’ve been taking whatever we can for student loans every year, taking whatever we have left over and using it to stock up the freezer just so we have a couple extra months where we don’t have to worry about food,” says Mr. Matherne, who owes $51,600 in federal loans.
Some students end up going deeper into debt. Early last year, when Denna Merritt lost her long-term unemployment benefits, the 49-year-old Indianapolis woman enrolled part-time at the Art Institute of Pittsburgh’s online program, aiming for a degree in graphic design. She took out $15,000 in federal loans, $2,800 of which went to catch up on unpaid bills, including utilities, health-insurance premiums and cable.
“Obviously, it’s better not to use it that way if you can help it, because you’re just going to owe that much more later,” says Ms. Merritt, a former bookkeeper.
#18 Only 28 percent of Americans know that the U.S. government can garnish wages and withhold tax refunds if student loan debts are not repaid.
It should come as no surprise that the delinquency rate on student loan debt in this country is far higher than the delinquency rate on mortgages, auto loans and credit card debt.
This is a financial bubble that gets worse with each passing year, and if we continue on our current course it is going to end very, very badly.
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Now where would they get the idea that forgiveness will happen?
"The challenges of managing student loan debt can lead some borrowers to fall behind on their loan payments and in some cases even default on their debt obligation," notes the always astute White House... and so it's time to do something about that... by bailing the bad debtors out with US taxpayers money. As we have been vociferously warning, not only has the student loan debt bubble expanded massively (as the easiest credit substitute for real-world working and unemployment) but delinquencies on the 'easily available' credit is soaring with "consequences such as a damaged credit rating, losing their tax refund, or garnished wages." Consequences, as we have been taught now, are not acceptable for this administration and so President Barack Obama issued an executive action in June aimed at making it easier for young people to avoid trouble repaying student loans.
A Federal Government bailout...?
President Barack Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans, a White House official said on Sunday.
The president will sign an order directing the secretary of education to ensure that more students who borrowed federal direct loans be allowed to cap their loan payments at 10% of their monthly incomes, the official said.
Federal law currently allows most students to do this already. The president's order will extend this ability to students who borrowed before October 2007 or those who have not borrowed since October 2011, the official said.
The administration says this action will help up to 5 million more borrowers, although it will not be available until December 2015.
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Welcome to the real world, debt serfs...
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You used to get a dowry for marriage now you get to acquire $50,000 of debt.
That might be a BIG reason for the drop in marriages!
It's just a race by different groups to get you collared the fastest. Somehow said "let's get them fucked BEFORE they get married and cash in".
Eventually babies will be handed a bill for $50 million. Then microscientists/fund mgr's will be sending bills to sperms.
It's called a forward looking system lol. No money to justify the current but there is in the future.
The student loan system is a failure - 24%?? We have to do better, and get that number up to 47% like the rest of the population that lives off the government.
My daughter worked hard to graduate without student debt. I worked hard to pay back my $60k in debt. FU you freeloading sons of bitches.
I understand your point. However the things the gov't are engaged in and have done combined with a shit economy I support the millenials 100%.
We're living in a different country now. The group of people I feel obligated to be honorable with no longer includes the federal government or the big banks. The sooner that status quo goes tits up the better.
I can't blame them for this. When you see corruption and no consequences all around you it is logical to say "what the fuck" and act the same way. I'd rather people actually had some morals and class and won't act like that yet more power to them I say and if the masses would have done something with all the bank bailouts and with all the corruption instead of sit idly by reading their TMZ, looking at useless facebook udpates and photos and shrugging their shoulders then maybe millennials would have realized accountability still exists. As it is, accountability does not exist anymore so again, I can't blame them.
roman galley slaves expected freedom "any day now..."
Student Loans should be dischargeable through bankruptcy. Bankruptcy is not a free ride. There are adverse consequences that take years to overcome. These consequences are enough to deter most individuals from selecting this way to "pay" for their education.
They were dischargeable until about 20 years ago. Back then there was a rash of doctors who declared bankruptcy -often on the advice of financial "experts"- shortly after completing their certification and education, stiffing the banking community (and ultimately the U.S. Government) with debts averaging over $300,000 each. These individuals were scoundrels, to be sure; but the overreaction of Congress punished an entire population of students in order to protect us from the misconduct of a few....Just like gun control!!....It was wrong.
In the future, the U.S. government should guarantee only 50% of all student expenses. The academic institution and the private bank (if one is getting a "private" student loan) should bear the risk for the other half. This way both the bank and the institution would be careful not to lend money to students who do not display serious intent of graduating, nor to finance academic courses with little or no economic value to the students who take them.
I am all for philosophy. But someone, who wants to be philosopher (or theologian, historian, sociologist, etc.), should pay for it out of his or her own pocket. A limited amount of course work, considered essential for a well-rounded education, should be funded through student loans. But the college/bank approving such loans will have to understand that they are investing in the quality of the student experience, rather than the economic viability of the student.
"the govt should guartantee only 50% of all student expenses"
seriously? how about fucking ZERO %. how exactly is it the proper role of govt to be invovled in education in any way, especially loaning money for college? There should be no department of education, pell grant, student loans of any kind whatsoever. No where in the constitution does it authorize the federal govt to be involved in student loans. And, everything the govt touches turns to complete shit, its the reason college is so fucking expensive nowadays anyway. If it wasnt for them giving out loans to anyone who could fog a mirror, people wouldnt have to go into debt like this anywy. The govt should stay out of it all together
Agree - but the Gov (and non-discharge via Gov written BK laws) is the only reason these loans exist in the first place at these insane level.
Who would lend $100k to some 18 year old to go to PartyU with no security and no Gov guarantee of repayment? Ain't nobody got time for that. Now, if every 18 year old could graduate on only $10k in loans, then lots of schools would be out of business or only online.
Amen, Carl. 100% agreement from this barbarian
Debt forgiveness will be in the form of a crashing US dollar as demonstrated by Ben Bernanke and his son.
His son has over $400,000 in student loans.
The plan is to foster crazy amounts of inflation to reward debtors.
Even Ben Bernanke himself is taking out loans now. Cheap money and payback in worthless US dollars.
First deflation and then crushing inflation fostered by the Federal Reserve. Wealth transfer.
Their liberal indoctrination, carefully concealed under the false flag of "a college education" makes them perfect sheep for rationalizing non payment and willingly trading their votes for that forgiveness. In that respect, they're not going to be much better off 30 years from now than Black Americans who willingly traded off their votes for welfare and free Obama phones.
Just one more nail in the coffin of US nation. LOts of nails already - no deportations, food stamps, bank bail-outs, no means testing for any benefits, and on and on
I graduated in 2012 and still have over $100,000 in outstanding debt, and trust me I'm not expecting (nor asking for) any help from Uncle Sam. I will admit that Wells Fargo hasn't exactly made my life any easier. I have been in the process of refinancing my loan with them given my track record of 2 years of repayment with no late charges, but the process has been so cumbersome and frustrating that it almost feels coordinated.
No customer service like a bank's!
I graduated in 2012 and still have over $100,000 in outstanding debt, and trust me I'm not expecting (nor asking for) any help from Uncle Sam. I will admit that Wells Fargo hasn't exactly made my life any easier. I have been in the process of refinancing my loan with them given my track record of 2 years of repayment with no late charges, but the process has been so cumbersome and frustrating that it almost feels coordinated.
No customer service like a bank's!
Actually an excellent strategy by the millenials and one that should be implemented across the US at all campuses.
What the slave masters don't understand is that when they try to fuck everyone there is always a way out of it..........up to and including death.
I fully endorse defaulting on these loans.
The US economy is a huge sack of discarded dog shit and these degrees are entirely too fucking expensive for the majority.
That being said.........stick in their fucking asses and break it off. Tell mr. $5000 a game suit, 10 million a year basketball coach to go to hell.
Implemented across all campuses? The fucking campuses are the one that get the money from the loans. Student loans are another corporate handout except they go to "non-profit" college corporations so it makes it all right.
Without compromising your own future, there is another way. Since the degree is becoming worthless, so should the pricing of the degree follow. People are just dumb as a rock to take out any loan for this synthetic sheep skin. You should tour the campus, tell them how much you like the place, but that your own research shows that the money they charge for a degree is way too high, and you WON'T be taking out a LOAN to cover it. "Call me when you get the price down to something I can afford WITHOUT a loan", should be the standard response to these schools.
Once the loans stop being handed out like candy on Halloween many universities will experience financial difficulties. Some are already having issues dealing with enrollment declines.
http://www.bloomberg.com/news/2014-09-24/enrollment-in-u-s-colleges-decl...
Here is the issues I see with default.
#1....it fucks over everyone that comes after them. But after awhile that would be a good thing, as schools would have to respond in kind with lower tuition.
#2....in today's world, you won't be able to do anything other than breath if you have a poor credit score. Be simply late (let alone default) and see what happens to your cost of living.
They have these youngins by the nads.
Anyone notice any movement to introduce underwriting standards and close off this honey pot?
There are other reasons such as schools lose accredidation without enough enrollments. #1 on the list........lawyer school. Can't let these fuckheads go under can we? So let's fuck the entire goddamn country to save their sorry asses.
Why forgive debt for one generation? Totally stupid, fuck it, forgive the same amount of student debt for everyone!!!
Give all the debt back to the BANKERS... and let them pay for it !
debt based sys = FRAUD
END THE FED
root of all evil
The government has NEVER forgiven debt. It ain't gonna happen. Maybe the re-open the poor farms for those of you millennnials that didn't understand math/economics. There is NO free lunch. You borrow the money, YOU pay back the money. I don't give a fuck if you spent the money on hookers and blow or majored in astrophysics. You just better be prepared to pay the fucking loan back.
Welcome to the real world where YOUR actions have consequences.
No, why pay back the counterfeit money for the ivory tower public work program. It would be nothing but positive if it was forgiven, after all its just paper and all the markets are rigged and all the banks got bailed out and everyone collecting social securtiy is getting more than they put in stealing from the children, and the people that dont' work get free phones, health care , etc. You can always go on disability and not pay it back anyway. Plus we fund genocide in palestine with that money and civil war in eastern europe and syria and death and chaos in africa and all the other things that keep us free.
If you are vested in this system, you need to blame yourself for having faith in other people to make your life work.
The financing of this country is broken and any attempt to apply moral and ethical logic to an inherently unethical system will lead to fucking yourself and not having a good time. If you can't beat them join them. Not until the power to print coin and money is returned to the people will this problem be solved.
I am patiently waiting for my chance to ascend and run this country the way it is meant to be, free.
Letting $1T in paper to be "forgiven" makes my little stack of bills that much less valuable.
Student loan forgiveness is how we ended up with the bozo in the WH.
Another reason why the "college for debt" system exists, is because the owners feel if people are conditioned to accept being in ad hoc, they will be conditioned to accept worsening labor conditions.
Thankfully for Americans, we have guns.
A student loan is designed to help students pay for university tuition, books, and living expenses. It seems that many students are borrowing against their future at an almost unimaginable pace, unfortunately the money is often used for things other then education.
Too many young people and others taking student loans "living expenses" go on to include cars, trips, vacations and more. All this has a very dark side that will effect the lives of these borrowers going forward and has the potential to grow to crisis dimensions in the future.
In many ways society is encouraging young people to take on this debt and to hock their futures. This is akin to the, "I will gladly pay you Tuesday for a hamburger today" way of thinking. More on this subject in the article below.
http://brucewilds.blogspot.com/2012/04/students-borrowing-against-future...
If you have been to college recently, or know someone who has.....see what kind of phones they use (hint: the latest).
Hear the stories of cross-continent trips and such.
This money was used in large part like a drunk with a credit card.
Hope the dope, booze and ho's were worth it.
A student loan is designed to keep failed "institutions of higher learning" on life-support for as long as possible. All black colleges and "elite" small liberal arts colleges come to mind immediately.
The student loan phenom was also designed to keep young people dumb and quiet as the status quo collapsed, and buy a few years of obedience and more Obama votes for the second term. Now that whole effect is running dry and the young people targeted by the technique are understanding they have been duped, some years of their lives have been wasted, and they also have big debts.
Sooner or later they will turn into angry adults who understand there is no giant milk bottle in the sky to take care of them. Too bad some of them are nearly 30 years old but stilll have the mindset of a 16 year old. But, sooner or later, they will understand the real nature of the world of limited resources in which they live. It's only a matter of time. They will probably be much better company once they make this great delayed leap into adult maturity.
"The type or nature of employment with the 501(c)(3) organization does not matter for Public Service Loan Forgiveness (PSLF) purposes. Additionally, the type of services that these public service organizations provide does not matter for PSLF purposes."
So this student loan crisis was at least a decade in the making, with plenty of warnings.
A simple lesson in exponents and compound interest would have prevented much of this problem.
Too bad schools are more focused on teaching 1st graders how to wear condoms.
I expect student loan forgiveness as well and I am far from a millenial. If the Republicans had one ounce of sense, their first piece of legislation from the new Congress would be that very thing along with the dismantling of the federally run student loan program that was the first thing the Democrats fucked up er passed in 2009.
They'd have the millenials till the day they died. But as we all well know, Rupublicans are every bit as stupid as Democrats.
who pays?
what about the next round of defaulters...which are certain to come?
I say let them declare BK but then you could not use gov money for subsidies at all (which I am for getting rid of).
College graduations would just turn into BK parties as they have no assets and could easily file.
Many of these students graduate with an undergraduate degree in the "social sciences" and can't find a job or pay their student loans. What do they do? Take out more loans and go to graduate school in the very same"social sciences". You can not make this stuff up
It's truly wonderful to see the uselessness of social science (an oxymoron) degrees becoming apparent. Jobs in HR and as Diversity Officers will disappear as the economy tanks.
I am a Boomer with two Millennials carrying pretty large college debt.
Both are highly educated, one in IT security the other a geologist. Both are employed, barely, with no benefits. Pay health insurance or pay the loan, those are the monthly decisions.
College, like health care costs, have sky rocketed because the government cannot hide the cost in creative accounting. So the true cost of inflation is reflected in those markets.
Let’s just carry this debt scenario forward say 20 or 30 years. Will this be a country where the illegals who enter this country with no debt then own the assets (homes) and the educated are slaved to the education debt and are therefore the renters or have their SS taken?
In other words, education is not only not rewarded but penalized?
Think on that type of society for a while.
I think it's closer to 100%.
?If student loan debt does get forgiven, that will be an outrageous injustice to the borrowers who have managed to pay off their student loan debt by honest frugality, effort and resourcefulness, which I have seen my millennial children do. If such a forgiveness happens by the federal government, it will effectively punish those who have paid or are paying off their student loans. The message of unaccountability that would send would be typical, and no surprise, considering the free pass given to the perpetrators behind the 2008 financial meltdown.
Not sure where I've heard it mentioned, but someone somewhere on some board made mention that if student debt is to be retired via forgiveness, students applying to go through this route MUST surrender their degrees/masters, etc. Hence, if you're a practicing lawyer owing $90K in student loans and you wish to retire it through a forgiveness program, as a result you must surrender your law-degree, and any related assertations linked/gained as a result of your law degree.
I would accept this. This would straighten up the millenials attitude right quick to paying that loan off. I don't care if you have to collect cans for deposits to find the funds to pay it off.
ALL debt will be forgiven !
Those assholes doing the savings are the true criminals and deserve to loose all their hard earned money !
I remember when I drove with my ex-girlfriend to medical school. They put a bunch of young college graduates in this large conference room, where they had all the student loan companies there. Federal loans can't cover the whole thing, so you have to take out private loans.
Anyway, they had this presentation, and basically told them they would be $200k in debt after 4 years of medical school. Then they put a piece of paper in front of you, and you had to sign it, with all these provisos, lose your license, liens, etc. And since most of it was private loans, they basically guaranteed that they would come after you with everything.
I'm not really sure if private student loans can be discharged in BK, but you'd basically have to be penniless before they would discharge them anyway.
She literally started shaking and burst out in tears, and she was definitely not a crybaby type. Finally, she calmed down after a walk outside, and then went inside and signed it.
Why don't they make everybody go through that tear-inducing presentation?
US medical school graduates are essentially guaranteed high paying jobs and can pay off that debt. They also end up with a rewarding and prestigious career, unlike law school graduates with a very serious debt load and much poorer job prospects.