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At 108 US Colleges, More Than Half Of Students Haven't Paid Even $1 On Their Student Loans
That the student loan bubble is one of the many "subprime" crises (because as of this moment there are just too many asset bubbles to count thanks to 7 years of global ZIRP, NIRP and QE) has been documented here ever since 2012. We also explained that the main reason for soaring college costs is the cheap and easily accessible government-funded student debt, which at last check was over $1.2 trillion and rising exponentially.
Today, the WSJ had an article on just this, titled "U.S. Helps Shaky Colleges Cope With Bad Student Loans" in which it explained in fine detail what our readers knew already, namely that it is the government's direct intervention with trillions in "aid" that is making the debt default problem far more acute than it would have otherwise been, and leads to keeping millions more "students" in college where they end up learning no marketable skills in a job market that rewards mostly waiters and bartenders, yet loads them up with untenable debt.
Like we said: nothing new. There was however one stunning fact buried deep in the article.
While we knew that overall student loan default rates for all US colleges were in the 8-10% range based on the Fed's quarterly consumer credit data, what was stunning is that the "non-repayment" rate, or the percentage of students who haven't made a single dollar toward their loans within three years of leaving college is a crisis-worthy 21.3%. This means that of the millions in college graduates from the 2010 and 2011 cohort (and since then the job market for recent graduates has gotten worse), more than a fifth don't have either the means or the intention to repay even one of the tens of thousands of dollars they owe...
... which means that ultimatley it will be up to taxpayers to once again foot the bill.
But wait, there's more. Because while 21.3% may seem like a lot, and it is, the number rises to an absolutely stunning 50%, or half of all students, when looking at the 108 worst college offenders in the US. From the WSJ:
At 108 four-year colleges, at least half of all students hadn’t paid even $1 of what they owe within three years of leaving college, according to an analysis by The Wall Street Journal of the latest government data. Those colleges got more than $10 billion in federal student loans and grants last year.
Arkansas Baptist’s nonpayment rate on student loans was 88%, the highest of any four-year college in the U.S. More than four out of every five students drop out. Fitz Hill, president of the historically black private college, says the numbers look bad mostly because Arkansas Baptist enrolls poor students.
Sure, there is always a reason. And just for future reference, here are the25 colleges whose students will be the first to demand a bailout of their student loans when they stop pretending they will ever repay, and go straight to the "default" column wihout passing go, if collecting tens of thousands in taxpayer funds.
The full list of all US colleges tracked by the WSJ can be found here.
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So?
The progressive liberal democrap colleges should have to eat that debt.
I think they figured out why it's called a BS degree.
Yes. And debt slavery for life.
FREE SHIT FOR EVERYBODY!!!!!!!!
And if you dare violate my safe space with your micro-aggressions I'll have you beaten to a pulp by campus security while I mock you for not being tolerant like me.
When will the bright chillin's in college learn that they are being screwed, once again, by "FREE" money from the gubmint? "Free" gubmint money drives tuition prices through the roof. Get rid of the gubmint involvement and colleges would have to have reasonable tuitions.
I hope they all default on the banksters.
It didn't used to be this way, college used to be affordable and in line with wages.
I'm sure most of the delinquent deadbeats are of the 70 IQ scholar mold (Obama's people).
A few facts about the leader, Arkansas Baptist College.
92.7% black.
4% graduation rate (after 6 years).
88.9% of "qualified" incoming students receive fiancial aid.
Bonus fact: Located on 1621 Martin Luther King Drive, Little 'Clinton' Arkansas.
Years ago when this started spinning out of control the graduates did default on their loans. They declared bankruptcy which affected their credit for 7 years. That suited them just fine, because they could work and live at home, and then afterwards do what they wanted. It was worth it -- a few years of inconvenience and they were scot free.
Students who diligently pay back their loans spend decades under crushing debt. Often they can't even find employment in their fields of study, and take whatever they can get. Many companies will train employees for what they want, so the debt is not always worth it.
Until the schools themselves have skin in the game this will continue. Courses they offer should be listed by degree of employment, so that the students can make an informed decision as to risk. Or if they offer dead end degrees, they should be made to payback. Academia has been running this racket too long.
Members of the FSA think that taxes are for the other people.
Everybody , all over the world, taxpayer, pays for this bS by inflation, , falling hardest on the poorest.
ZH would do better to not say that taxpayers pay. Everybody pays.
The Greatest bubble ever created..
A gal my wife works with, owes $56k in student loans. Has a good paying job. So does her husband. She told my wife she has yet to start paying. When my wife asked why, she said she was told to either NOT pay, or pay as little as possible, because the "government" might forgive the loans. Who told her this, I do not know, but I'm gonna try and find out. Sounds about right on the mindset, though, doesn't it?
It's dead-on with the mindset, though the government will first either provoke a crisis or wait for one. The debtload is simply too high to be feasibly paid back.
Any bailout will have more to do with life-support the loan companies than helping any of the borrowers.
I fucked up and paid off my total college loan of less than $5k.
Now don't you feel dumb?
I'm always dumb. I'm the kid that colored his school wagon green instead of red, Because my wagon was green in Kindergarten, Totally fucked with the school from then on. The roots of a rebel. What color is your wagon.
It's not to late to go back, get a degree and 75K in debt...
I've got about twelve units to complete a masters. (Had to got to work) These days I'd prefer to nuke commuter U than attend, I cna't see waht they could provide to me, without thousands of dolllars, that I don't alreadyknow and do (most likely beyond their comprehesion.) I can't imagine a Maters course to someone who has twenty years in controllership and is currently Controller for a total of fifty-two entities in divrse fields; mining, ready mix cement, retail steel sales, steel fabrication, real estate, concrete recycling, logistics and, apartment management, I don't need another degree. I'm not leaving here.
An entire "industry" has grown up around vague pronouncements from the Fedcoats of a G.I. Bill without the G.I. part:
http://www.studentdebtrelief.us/forgiveness/obama-student-loan-forgivene...
Fail to pay? No tax refund for YOU!
No EIC, No Child Credit...NO Refunds!
Happened to someone I know... all excited about a fat EIC check... filed return... got a letter from the IRS saying the refund was applied to their loan balance.
That would pretty much be all of them, wouldn't it?
Hey, they should of taken the DHS major. Many colleges now offer graduate degrees for the Totalitarian Authoritarian Militarized Police State. Nothing like giving a beat down to an innocent Civian.
1.2 trillion in outstanding debt, 1/15th the size of GDP
Is there a triple inverse ETF for shitty bankrupt private colleges?
I can guess who one of these deadbeat "grads" are... ;)
At 108 US Colleges, More Than Half Of Students Heven't Paid Even $1 On Their Student LoansThese don't look like great schools.... I mean who graduates from a "Baptist" school and actually has skills that are I demand?
agreed Larry Dallas,
I 'll take Rust College for their oxidation mitigation degree program,
second to none.
as we all know....rust never sleeps.
(nor do those in debt)
Too complicated for the IQ70s. Get a degree in basket making with a minor in mining and join the Hoffmanns on Goldrush.
Now let's have a round of applause for these new recruits in the Free Shit Army !
Yes, because college SHOULD cost $30k a year, fucking moron, YOU need to go to school...
http://www.usnews.com/news/articles/2013/10/23/charts-just-how-fast-has-...
You people just love to focus on those who have the least power and the least to gain. Not the fucking banks who are raping society...
Relax Francis.
Right, it was 250.00 a year when you signed up eh?
They were forced to enroll in a shitty $30K a year college and take out all those loans, right you cocksucking maggot?
You perpetual victims and the bankers can fuck each other up the ass for all I care.
Maybe there's some middle ground between cocksucking maggot and something resembling a point?
I was able to work my way through college because tuition + room & board was about $16,000 a year for the quality school I went to. Minimum wage was $5.25, so it took about 3,050 hours of minimum wage work to pay for the damn thing.
Now it's 50,000 at the same school (just checked) and minimum wage in that state is 7.25, so it now takes 6,900 hours of minimum wage to pay.
So yes, there is the free shit army, there's Obozo's socialist paradise and the cocksucking maggots. All true. But it's also true that people have to work twice the hours to pay for college.
Disclaimer: This study was quite unsicientific but the point remains.
When our school's default rate hits 88%, you're going to see some serious shit!
As long as money can be conjured out of thin air, problems can be hidden. For a time. Then all hell will break loose.
I'm in a neighborhood that built large homes on former farmland. It became a 95% White mega paradise away from the city. Then the geniuses in charge decided to build apartments and along with government handouts, massive numbers of blacks, hispanics, and some asians have poured in. I think we're outnumbered, the 2010 Census claims the area is still 70% White, but I call BS. You don't see Whites on the street that much anymore.
The reset can't be far away, and those apartments will be turning into ghettoville or emptied, bad or worse than Baltimore City. Can't wait.
Negro college
Well, at least the ones that graduate are getting a serious edumucation ;-)
GENERAL EDUCATION COURSE DESCRIPTIONS
Urban Community Leadership
202 African History
This course examines the history of Africa from its encounter with colonialism to the era of independence and neocolonialism.Coverage includes colonial systems of governance, African resistance and nationalism, the independence movement, and the struggle for liberation in Southern Africa.
220 Private Reading
This course is a self-paced course based on selected reading in books, magazines, and newspapers on Africa American issues. This course is open to any student who is interested in undertaking a Private Reading course with a member of the department.
300 African American Cinema, Film and Hip-Hop
This course intensively focuses on more recent films with Black subjectivity in both dominant and independent cinema. The course examines the legacy of both “Blaxploitation” and the radical film movement of the early 1970’s on artists of the 1980’s and 90’s. It will also examine the effect of the Hip-Hop culture on Black America. The class correlates the climate and cultural history with various genres of music that led to Hip-Hop music. Individual artists are studied not in isolation but as part of the larger cultural context.
312 The Sociology of Whiteness
This course is intended to use the subject matter of Whiteness to enhance literacy, critical thinking, social awareness, and mastery of some of the skills related to general education. It seeks to assist the student in making a better presentation of self in everyday life, as well as enhancing an understanding of other cultures and values.
http://2brw0p1dcvnn2r6i4d1twgq3.wpengine.netdna-cdn.com/wp-content/uploa...
LOLtastic... and here's another excerpt from the catalogue:
All excellent, useful degrees that impart employable skillsets, of course.
The only useful degree I see is accounting, although I doubt any of their graduates can pass the CPA exam.
Wow, that's shocking considering the copious amounts of solid, high-paying jobs available in the fucking market.
bfd until it is
Debt collectors are not allowed to violate 'Safe Spaces,' it might hurt student's feelings.
You joke, but I wouldn't be surprised in the least if there was some legislation passed protecting fragile egos from nasty collection phonecalls.
I would ask if these are predominantly African American schools, but that would be racist.
I'm going down the list and checking each on the internet. So far, they are all Black schools. Just as you expected.
That would be, if your only goal was to somehow associate skin color with morals, and we all know you would never think to do that...You would not focus on trade deals that fucked over Rust Belt economies and textile factories in the south, predominately effecting African Americans ...You idiots will forget all context to support racism.
Only blacks worked in manufacturing and now they're unable to learn any other skills? That's a mighty racist ASSumption you made, cocksucking maggot
Always fall back on the race card, eh? What I was alluding to is the undeniable culture of irresponsibility and dependency that's been fostered within the African American community by the Democratic Party since the LBJ era, which has hit warp speed during the Obama era.
How many of the kids taking out these loans expect to ever have to pay back as much as a dollar of it? The fact that so many haven't even repaid so much as $1 of their loans reveals your answer, Dipshit.
And every single one of them will vote for Bernie.
Well, if they're not willing to pay for their degree, what does that make their degree worth? When I run my ads: "College degrees not accepted without proof of payment".
Joke's on them, voting doesn't change a thing.
They're going to be in for a big surprise when they realize only the approved are allowed to be politicians. Even old Bernie and hilarious Trump.
It'll be like Obama all over again. "B-But you promised!"
Shocked, shocked(!) to see a bunch of Christard parochial schools topping the list for non-payment. It's hard to get a job as a gene sequencer if you don't believe in evolution, and it's hard to become a rocket scientist if you think God moves all the little stars around by hand.
What does gene sequencing and rocket science have to do with whether one believes in God, I had a conversation with a NASA physicist about his personal beliefs in that the closer he looks at the cosmos what does he conclude, he just laughed and said there is no doubt in his mind that there is a creator and oh, wait for it..........he is gainfully employed. Indeed, the closer one looks the chances of laughable happenstance fades away.
Believing in God is fine. I believe in God, for some definitions of God. But the Christard nonsense is just so many blasphemous barnacles affixed to God's hull by unscrupulous bullshit peddlers.
My problem isn't yes/no on a creator it's the idea that the creator wrote a book 2k years ago and gave it to a select group... leaving out a billion others... pure silliness.
2 of God's special people so far.
you didnt build that college degree
if you like your studen loan payment you can keep your student loan payment
I actually make my last payment on my student loans in about 2 weeks.
I guess that makes me one of the stupid ones to pay it back....
Sucker. That's alot of money you could have had a fun time with.
No, unfortunately it makes you the exception. You're honorable and respectful.
Honorable and respectful?
Just sounds like a cry to be taken advantage of in today's society.
Never heard of any of those schools. There's too many colleges in this country. The world needs ditch diggers too in the words of the great Judge Smails.
As stated above, a large number of them are HBU's.
I would bet 95% of the deadbeats will vote Hillary...
You've got the math wrong. It's more like 115%. You forgot the dead deadbeats.
I'd fuck each and every one of these scofflaws up the ass. I'd pull their diplomas and turn them over to a collection agency. Once it's paid - they get their diploma and full credits back. I would NOT treat this any differently than any other debt.
Well, how do you feel about the victims of Con Men?
Yeh, they should have known better, but on the other hand the colleges on that list are dens of thieves and vipers who are completely ripping off their students.
At the very least, 75% of the students don't even belong there, they don't read and write at the 1980's High School Graduate level (I don't know WHAT THE FUCK the level is now, apparently it's just above retard)
So, the schools ARE in fact emplowering the CON- SWINDLE by even letting them, these poor and completely un-prepared students, in the doors of the school in the first place.
So the students ARE actively being ripped off without knowing it.
Car dealers and stock brokers are con men too as well as mortgage brokers. You advocate no personal responsibility? You are the problem
Read my post again, I do say they have some responsibility.
But, This does not change the fact that they are part of a Con.
Also, They are children, and VASTLY less mature then we were at their age. I think that most of the 45+ guys here already had money saved and had been working since 13 or at least 16, part time and weekends, and had at least a bit of a clue as to the real world.
You nailed it, Peak Finance.
Like many of the early boomers, I grew up relatively poor. There was no pot of money waiting for me to go to college. I was always hustling for odd jobs as a kid, and so were most of my buddies. As soon as I could, I got a paper route, which I kept from 8th grade until after I finished High School. Up every morning at 5:00, year-round, and Saturdays were spent trying to collect from my customers. If I finished in time, I went to local service station and hand washed cars. In the summers, I worked construction, too, and then had to rise at 4:30 so I could be at the job site on time.
I went to 2-year college on a work/study program, and then transferred. Between my Junior & Senior year, I was broke and stayed out of school to save a little, and the draft lottery caught me that fall. It took me 9 years to get a 4-year degree, and I never went to school one day without having to plan my schedule around a job. I have never had to show that degree to anyone, or list it on an application. By the time I got it, I was working for a large company, and they asked me to move to the corporate HQ. I was making good money, and had zero debt when they handed me that B.S. degree.
4 years later, I left and started my own show.
That early sense of independence and doing things my way never quite fit into the corporate mold.
This is not bragging, and it sure isn't some kind of plea for sympathy. It is just the way things used to be, as I am sure many ZH readers can testify.
But the point I want to make is this --- Doing it that way today would be far more difficult. First, those jobs that were once so plentiful are much harder to find, and second, the cost of everything relative to the income is radically different. I really feel sorry for the youth of today, but there are plenty of them I admire. The tech school parking lots are full, as are the 2 year colleges. Those are the places where you find the hungry kids, the hustlers and realists who have figured out the score and know that it's not the dog in the fight that wins, but the fight in the dog.
Everyone has to eventually find their own way in life, but my advice to young people is simple - Stay single until you can afford a family, and stay out of debt. That is the surest route to independence and personal success, as I know many of us have learned.
I'll never forget the one summer I spent rock picking and hauling for a mason that did stonework - porches, fireplaces, walkways. Great pay, hard work. My bud's spent most of the summer drinking and partying at the beach.
I got my reward though, a nice pile of savings, and the loss of most of my financial aid/grants because I 'earned too much money.'
Those that fucked off all summer at the beach? Not a problem, your aid continues uninterrupted.
Amurika, FUCK YEA!
It's a good thing no one has said this personally to me. That probably would be the end for that man.
Anybody who pays taxes in the US should immediately stop paying their mortgages. Simply let your bank know that until the students pay their loans, you won't be paying yours, either.
Suggest you check your equity position first.
IBR's are the real story.
IBR is "Income Based Repayment"
You can call Navient and ask for this, and you get it automatically if you are in good standing. If you have no job, you get an IBR repayment of 0, BUT, this 0 payment counts towards your 30 years of payments in good standing to get your debt discharged!
You need to re-apply for your IBR yearly.
I am guessing that the kids in this story that never paid even a dollar to their loans all have IBR's and therefore are in good standing still, lolz.
This is open to all kinds of crazy abuse.
NOTHING will change that first SLABS coupon payment is missed.
IBR is basically a testing ground for the eventual forgiveness of debt. Count on it.
My advice is that no one pay their loans back and stick it in the govt's fucking ass for lieing about some bullshit economic recovery and job statistics.
Eventually lies come home to roost.
Exactly, which is why I'm signing up for IBR in the next week.
Agree, we all know the system is a giant slaving fucking lie, with currency conjured into existence yet people flip their shit because others say 'fuck it; I'm not repaying SHIT on my loans.'
Dealing morally with an immoral enemy is itself immoral - Some famous dude.
Party on Garth /S You wouldn't believe how many D and R congress persons made out on the student loans. Think about it this way, No money down bad credit buys you a real cream puff of a car now doesn't it? Whilst you were partying with your tenured professors, they were fucking you blind and knew that the jobs were being outsourced elsewhere. Add that to Obamacre and you find yourselves in quite an inescapable pickle. They of all people should be intelligent enough to advise you of what was happening, and i know they did, but fucked you over anyway. Congratulations! You are now tenured debt slaves and you will never be permitted nor be able to afford the entry fee at the country club.
Bubble is about to burst. Merry Christmas everybody!!!
Then there is more:
Perkins Loan Extension.
President Barack Obama gave low-income college students strapped for cash to cover tuition an early holiday present Dec. 18.
http://www.usnewsuniversitydirectory.com/articles/perkins-loan-program-r...
Obama SIGNED what the republicans SAT ON HIS DESK.... moron!
FireBrander don't try to educate these racist morons.
Amazing how they focus on skin color, and not the circumstances many poor find themselves...and of course the never ending extreme idiocy of blaming Obama for something everyone of those filthy traitors in Washington has done, and will do again and again.
They are just more American Sheeple, who play the game of left vs right, as if Bush was BETTER?! Reagan, Bush, Clinton, Obama, all filthy traitors to the nation and its people, starting with Reagan giving amnesty to millions of law breakers, and now Obama want to do the same, but somehow that makes Obama worse?!
We never get anywhere because these idiots are interested in blaming someone else, if it was not blacks or Obama, it would be the Muslims, forgetting again the fact that we have caused infinitely more terror to Muslims, than they could ever possibly cause us, in a thousand life times.
We deserve the terrible leaders we get...
Let me guess...black and liberal arts colleges?
Let me guess, racist white asshole...
How about the number of white women who don't pay, or even better Latinos, or any other group. Why single out blacks, if not for the fact you are a racist?
All of the top colleges listed are "historically black"; now, it doesn't make a person a racist to understand that this is not by chance, but goes deeply to the heart of black culture and black entitlements (saying nothing of black intellectual ability vis a vis - for example - Jews and Asians).
We all have character flaws, part of being human...but being racist isnt one of them...thats just being an idiot and a gaping asshole..
We all have character flaws, part of being human...but being racist isnt one of them...thats just being an idiot and a gaping asshole..
How about those numbers... Waiting for you to set him straight. Otherwise, you just invalidated your righteous indignation.
If kids do this in mass there is no way to stop it. JUST LIKE THE HISPANICS BROKE THE LAW AND NOTHING WAS DONE because the problem is tooo big(we cant incarcerate all these kids either). How much has each illegal cost the system? All Obama has had to say is Immigration restriction is a BAD LAW. Well loan pay back is a bad policy also. Have at it kids, Govt reaps what it sows.
Allen and Boonedict, directly across the street from one another on Forest Drive, Columbia, SC.
Boonedict almost lost their accreditation in recent years. The gradumuhcashun rate there is atrocious.
Fortunately I started school when the U of T at Austin was still pumping oil. so no tuition. The idea then in Texas. Before the crazies arrived, was that ever youngster would be given a shot at college. Now with the neo liberals the idea is to make students a profit center for business. Fuck them. Don't pay the fuckers the money.
One of the few honest comments on here:
We have a combination of comments here that like to hate on students in general, and blacks specifically. How is it that college goes through the roof, and students are the bag guys because they can't pay, especially when there are no jobs. Yet there is always hundreds of millions of dollars for Israel, Ukraine, Egypt, Turkey and every other zionist global outpost. But for insuring our kids are educated and insuring they are NOT straddled with dept, FUCK'EM!
At most universities, its administrative salaries that have gone through the roof. below is just a conservative sampling. At the two colleges I obtained degrees, both Universities paid their top guy OVER $500K a year, with at least one assistant making $350K a year, and on and on, all salaries based on the University's President. Yet many here just focus on those whit no power and no choice, they want all of us to be debt slaves.
https://www.higheredjobs.com/salary/salaryDisplay.cfm?SurveyID=22
I have no problem with Americans saying FU to student loans, an education is the least we own our kids, since we have given the jobs away to make millionaires billionaires.
Of course on a side note, I am not a fan of illegal immigrant coming into this country and getting on the dole, the American tax payers owes them nothing.
If you take welfare payments you should lose the right to vote until you repay the monies.
If you take government guaranteed student loans you should lose the right to vote until you repay the monies or are at least current on your payments.
If this were true Hillary would never get more than 8% of the vote if that in any election.
The money is worth more than the vote.
It's not just government guaranteed student loans, but also shit-tons of government grant money that doesn't have to be repaid.
A lot of the "students" at these "universities" use the loans and grants primarily as a way to get out of the house and be independent. They don't need high SAT scores to get accepted into these institutions of knowledge & wisdom, they just need to qualify for the government grants and government-guaranteed student loans. As long as they're full-time students soaking up knowledge and gaining the tools & skills that will make them future productive members of society the bills get paid. HUGE bills for food & housing & tuition & books & entertainment.
Then they graduate. Everyone's very proud of their hard work and accomplishment. Time to commence life as hardworking, taxpaying pillars of the community!
Uh oh . . .
It's the same damned scam they used to run with "Beauty Schools" and "Be a Private Investigator" colleges back in the day, only on a much larger scale and with government funds. The "students" and U.S. taxpayers are the pigeons.
Why does the Art Institute of Phoenix have 243 million in aid, when the rest of the universities have closer to 5 to 12 million?
How high does the salary of the students need to be to pay that off?
Sounds like I should've gone into art rather than engineering.
I'm hoping that was a typo but is probably an indication of K Street buddies. Regardless, probably a couple million in taxpayer aid per underemployed graduate.
hmmm....... 9 of those 10 listed schools come up as Historically Black Colleges. Makes one wonder if the students/graduates are not getting encouraged to not pay their student loans. what a f*cking joke this has become.
Could have added 'and never will'.
You get what you pay for and they ain't gettin' much.
How much of AAPLs revenue comes from student debt.