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Sure student loans is a racket, you're dealing with bankers! Maybe a good lesson for the little brilliant darlings without a scholarship to learn early on right out of the gate.
We're looking at a generation of unemployed youth with the added stress of 5 to 6 figure debt incurred to pay for a worthless education.
Remind me again, what recently happened in Arab countries that were full of unemployed, desperate youths?
NIA's college conspiracy movie: http://www.youtube.com/watch?v=VpZtX32sKVE&feature=pyv&ad=6739540474&kw=colleges
Close to 2.5 million views!
I'm confused. How does this bubble actually pop when default is impossible? Can anyone actually explain how this bubble popping would play out?
Default is always possible.
But discharging of debt by default not. At least not now yet.
The government will forgive the debt if they "volunteer" for military service in WWIII. Usury, bitchez!
why are students not allowed to default on such loans? why do our federal government provide guarantees on these loans while private companies capture all the profits? this kind of legislation does not help the students but rather enslaves them. not to mention such legislation creates conditions of fraudulent conveyance and conflict of interest, therefore it cannot and should not be constitutional; it's more reasons to hang banksters.
Is anyone pointing a gun to your head forcing you to accept a student loan?
You know FRNs are worthless pieces of paper that pass for money. Why then do you assign value to a worthless piece of paper that passes for knowledge?
Are you one of the 99% brainwashed who believe that such a piece of paper is your key to success?
Steve Jobs gave the education system the finger. Everyone should follow such example.
Bill Gates of Microsoft is also a college dropout.
Bill Gates, Warren Buffett, Donald Trump, Koch Brothers like many who proclaim to have earned their millions were born into upper class.
"There are three ways to make money. You can inherit it. You can marry it. You can steal it."
William Henry Gates III made his best decision on October 28, 1955, the night he was born. He chose J.W. Maxwell as his great-grandfather. Maxwell founded Seattle's National City Bank in 1906. His son, James Willard Maxwell was also a banker and established a million-dollar trust fund for William (Bill) Henry Gates III.
In some of the later lessons, you will be encouraged to take entrepreneurial risks. You may find it comforting to remember that at any time you can fall back on a trust fund worth many millions of 1998 dollars.
William Henry Gates, Jr. and Mary Maxwell were among Seattle's social and financial elite. Bill Gates, Jr. was a prominent corporate lawyer while Mary Maxwell was a board member of First Interstate Bank and Pacific Northwest Bell. She was also on the national board of United Way, along with John Opel, the chief executive officer of IBM who approved the inclusion of MS/DOS with the original IBM PC.
Remind your parents not to send you to public school. Bill Gates went to Lakeside, Seattle's most exclusive prep school where tuition in 1967 was $5,000 (Harvard tuition that year was $1760). Typical classmates included the McCaw brothers, who sold the cellular phone licenses they obtained from the U.S. Government to AT&T for $11.5 billion in 1994. When the kids there wanted to use a computer, they got their moms to hold a rummage sale and raise $3,000 to buy time on a DEC PDP-10, the same machine used by computer science researchers at Stanford and MIT.
Recall that in the 1980s we venerated Donald Trump and studied his "art of the deal". If Donald Trump had taken the millions he inherited from his father and put it all into mutual funds, you'd never have had to suffer through one of his books. But he'd be just about as rich today.
In 1942, Warren Buffett's father was elected to the first of four terms in the United States Congress, and move his family to Washington D.C. Giving money to politician's kids is one way to circumvent bribery rules. Where and how do you think Buffett raised money to start his investment???
For everyone else, college is the only way to even become middle class wage slave these days. And it doesn't even guarantee your retirement either.
real smart people stay in college forever and get in the payroll. See "Student Worker" making $520,000 / year for churning out grads who can't even get jobs.
Name Position Department Salary YearDennis B Erickson Head Coach Football Ica Administration $1,275,000 2008Herbert J Sendek Head Coach Men's Basketba Ica Administration $900,000 2008Shay Marie Masterson Student Worker V Res Life Rha $520,000 2008Michael M Crow President Office Of The President $475,000 2008George Henry Poste Dir AZ BioDesign Institut Biodesign Institute $456,825 2008Robert Mittelstaedt Dean W. P. Carey School of Business $456,502 2008Charli Turner Head Coach Women's Basket Ica Administration $400,000 2008Elizabeth D Capaldi Exec V Pres & Provost Office/Exec Vp/Provost Of Univ $385,000 2008Jane Catherine Christie Student Worker V Res Life Rha $353,600 2008Robert Greenes Chair (FSC) Biomedical Informatics $330,000 2008Jeffrey Coles Chair (FSC) WPC Finance $326,482 2008Lisa Lee Love V Pres University Athleti Ica Administration $325,306 2008Sethuraman Panchanathan Director, F (FSC) School Computing & Informatics $321,515 2008Carol N Campbell Exec V Pres & Chief Finan Exec Vp Business And Finance $320,882 2008Richard H Stanley Sr V Pres & University Pl Srvp & University Planner $313,857 2008Jonathan Fink Dir Global Inst Sustainab Institute Of Sustainability $310,500 2008Subhash Mahajan Director, F (FSC) School Of Materials $301,790 2008James Arvid Ohlson Professor WPC Accountancy $301,001 2008Deirdre Ruth Meldrum Dean Fulton School of Engineering $300,000 2008Alejandro M Manelli Professor WPC Economics $294,999 2008Richard D Rogerson Professor WPC Economics $294,724 2008Patrick T Murphy Head Coach Baseball Ica Administration $294,218 2008David A Young Senior VP for Academic Af Office/Exec Vp/Provost Of Univ $294,000 2008Michael Tracy Dir Strategic Planning Biodesign Institute $291,601 2008Edward C Prescott Regents Professor WPC Economics $283,244 2008Patricia Denise White Dean College of Law $282,000 2008Anthony Bown Sanders Professor WPC Finance $273,000 2008Crocker H Liu Professor WPC Finance $273,000 2008Gerald Villanueva Bohulano Student Worker V Res Life Rha $270,400 2008Christopher Matthew Gast Student Worker V Res Life Rha $270,400 2008Hayley Roxanne Umphrey Student Worker V Res Life Rha $270,400 2008Vikram K Nanda Professor WPC Finance $268,022 2008Christine A Wilkinson Sr V Pres & Secretary of Senior Vice President $261,695 2008George Hynd Dean Fulton College of Education $260,000 2008Robert E Hoskisson Professor WPC Management $259,434 2008Robert John Kauffman Professor WPC Information Systems $256,366 2008Dennis L Hoffman Assoc Dean WPC Seidman Research Inst $252,424 2008Luc E Anselin Dir, FA (FSC) Geography $252,000 2008Philip Roger Regier Exec Dean W. P. Carey School of Business $251,640 2008James A Rund V Pres Univ Student Initi Univ Student Initiatives $250,502 2008Vincent Kerry Smith Professor WPC Economics $246,809 2008Mernoy E Harrison V Pres & Exec V Provost VP/Exec Vice Provost DPC $245,080 2008Sunil Wahal Professor WPC Finance $242,026 2008Robert Eugene Page Jr Dir School of Life Scinc Sols Administration & Faculty $241,662 2008Ajay Shreekrishna Vinze Professor WPC Information Systems $240,224 2008Quentin Duane Wheeler V Pres/Dean College Lib A College Of Lib Arts & Sciences $240,000 2008Charles W Christian Dir Sch of Accountancy (F WPC Accountancy $240,000 2008Kip Vernon Hodges Dir, FA (FSC) School Of Earth & Space Explor $237,500 2008
Because everyone from your elementary school teacher to Obama drills into students' and parents' heads that the only way to succeed is to go to college and it's your obligation to "do whatever it takes" to pay for juniors 5-8 years at college. That meme is accepted as the gospel truth by I would estimate 98% of all students and parents in the U.S.
they forgot to add in one detail:
"go to a good college and major in practical studies"
if you major in bull shit studies at southern mississippi columbia college, what did you expect? well ok, you can still run for political office.
It is time to get rid of bottom 50% of colleges who let idiots dilute the value of college degree.
'Is anyone pointing a gun to your head forcing you to accept a student loan?'
No, but this is the only debt where someone points a gun at your head if you don't pay. ALL of the debt, plus the interest, is paid with the barrel of a gun at your head. Why is that remotely significant? Think about other 'lifetime' debt you can acrue. Bad mortgage? Bad business? Bad marriage (with no kids, in a no fault state)? Lose billions in your hedge fund? Lose $500+ million in solar panel subsidies? Forget to take back a library book? No problem. You can settle for pennies on the dollar, or walk away.
Default on a student loan? Major problem.
If a person defaults on their loans, their paycheck is garnished 15%, and their tax returns are taken until the loan (with interest) is 100% discharged. If any money is STILL not paid for by the time you retire, YOUR SOCIAL SECURITY BENEFITS ARE GARNISHED. What bad mortgage does this? What failed marriage does this? Even filing for bankruptcy doesn't ruin your life like this. Our 'wiser' parents always assumed we would have perpetual growth (and jobs) to pay for this debt. Now the piper is coming due for such arrogance, but it isn't the parents paying the majority of the price (unless they co-signed) . . . it is their children.
The rules WILL be changed before long . . . or else there will be bloodshed over this. Celente is right. People who have lost everything, lose it.
people have lost more than everything. recent grads don't even get unemployment and interest rates are 7%!
It is the baby boomer generation working as college admins ripping off the next generation while selling the dream. College admins are the real state snakeoil salesmen. They need to be reined in as well as banksters making profit off of no-risk loan products and quasi-government fucktards at Sallie Mae.
they are in debt for life!
The banksters are schooling future generations. Let's hope the youngters turn around and school banksters.
See Occupy Wall Street.
Maybe they are naive young hippies, but hippies with $50k college loans made by banksters who knows government will bail them out for bad loans. At least allow them to declare bankruptcy and stick the loss on the banks, not some kids.
You let illegal aliens walk away from $500k house after living in it for couple years with $20/hour cash income, but baby boomers want to blame and punish college kids for $50k student loan? What a selfish old fucks we have in this country. Also the college presidents and admins (not professors) are one of the most overpaid paperpushers.
Sallie Mae (SLM) is the next Fannie /Freddie disaster.
Highest earners at private colleges (in millions, not including college presidents) not to include near tenured nature of the position:
Steve Jobs gave the education system the finger. Everyone should follow such example.
College degree is required these days for even mundane jobs. You can't even become a secretary without a college degree.
Not everyone wants to become a tech entreprenuer.An I don't think you want your doctors, lawyers, accountants, etc. to just wing it and not have a college degree at all.
Your chances of getting richer is far better if you have a degree than not. For every 1 Steve jobs, there are thousands of college drop outs who are probably homeless versus, college degree will at least give you a chance at some non-labor intensive job.
why are students not allowed to default on such loans
Blame their parents. Back in the late 1970's, once the "progressives" had buried shame and honour as concepts, a whole bunch of Boomer students realized that if they went bankrupt immediately after graduation, before they had a job, their student debt would disappear. Since there was no longer a stigma attached to bankruptcy, nobody gave a flying f*** if it was on their record. This concept spread like wildfire around campuses across the nation. Students started declaring bankruptcy in record numbers.
So, government took the then unprecedented step of making it impossible to discharge student loan debt through bankruptcy. One more reason for Generation Z (Y? X? I've lost track...) to hate the parents that have saddled them with huge debts and huge entitlements GenZ will never get, but will have to pay for.
Maybe Brokaw's next book should be about the Boomers - "The Greediest Generation".
God help us all, that is exactly what I was thinking. What a mess.
yep. Just because you legally owe the balance of the loan, if you cannot pay, you cannot pay.
When you owe the bank $10,000 it's your problem.
When 1 million kids owe the bank $10 billion, its the banks problem.
Given the ability to garnish wages, etc., it basically means perpetually having no net worth... no surplus... And, if you take your sweet time with it, it probably means never touching the principal.
Yep. The payoff, with interest, is more money than most of these people will ever see = debt peonage. That was the purpose all along.
It is an extra "TAX" by the banksters on the productivity gain of your education.
Dental schools debt in NY are at $300,000.
And you know what happens when the young professionals get out with such big debt? They rip you off so they can pay back these loans.
And you wonder why healthcare costs keep going up...
No problem for the banks. They can just garnish your wages until you die.
Banks don't have problems. If a bank has a problem it becomes your problem.
I smell a business opp in staged deaths.......
And insurance fraud to boot (fuck I'm talking to myself again....)
Isn't Obongo jibber jabbering later I already need a drink.
That's the big difference between this and the housing bubble, with student loans, there will be no strategic default, just millions of people with a massive debt overhang that will hold back their careers, their access to credit, and their standard of living. The universities are no different than drug dealers who prey on children. "Hey kid, want some free money? Just sign here, don't worry you won't have to pay it back until you're making 6 figures with your high powered degree in social studies. It's a sure thig."
Honestly, I had a date night with the wife where we went and painted (and I drank a bottle of expensive wine), I'm a real sensitive guy, and the girl instructing the group was paid by the state to go back to school to "re-tool". She got a free ride to a very expensive private school to get a degree in ... wait for it ... you're not going to believe this ... are you sitting down?... Art! I'm not kidding, probably close to 6 figures to give a chick an Art degree which she uses to make $10 an hour instructing drunk rubes like me on how to paint something Bob Ross did. The whole educational system is fubar.
LOL thanks for the laugh and the visual.
you need $10,000 for even the beauty school.
You won't get Bob Ross today with so much pressure to make money because everyone is in debt. These days you HAVE to make a lot of money to stay in middle class. Money has too much power and won't let future Bob Ross to try something other than making money at all costs.
Bob Ross did his show on public TV for FREE.
Actually, I've been to Bob Ross's warehouse in northern VA. I believe all of his original paintings from the show are there. Bob did the show as advertising for his painting products and services. His family seems to be doing fine with living off his legacy.
funny thing is Bob Ross was in the military for a long time and got started in painting mountains in Alaska when he was from sunny Florida.
He didn't wants to work at a place where they yell at you and you yell at other humans.
Really good movie. In 1994 I graduated with an AA/Registered Nursing degree, paid as I went, got out with no debt. Started work right away making $350/shift and in 2011 I retired from nursing making $744/shift (agency work in Los Angeles) I was suckered into going back to college for a BSN and after paying $900 a class for one year I said fuck it, this cost too much and I was already making more money than RN's with bachelors. I was also making more than nursing instructors with Masters degrees, WTF? Sounds hard to beleive but I tell no lies. That's why there's a nursing shortage, it stems from not paying instuctors well (masters degrees cost a lot) so no one wants to teach when they can make more money elsewhere. Also, I was better prepared to take care or pt's and had more hospital experience though my AA program than nurses who went through bachelor programs. They took bullshit classes just to support the football team or other unnecessary university crap. While they were paying back school debt, I was buying property--yes
I have lost equity but at least I can live in it.
Any idea of how to find a CDS (or some proxy) on student loans? I could be the next Kyle Bass!!!!!! (except those Eurocrat bitchez will probably try to ban naked CDSs on student loans also. Bitchez!)
By the way, is it time to cue the deer?
Please limit your use of bitchez to one per post. Biatch.
LOL - hungry for risk!?
You too will have to retool, methinks... ;-)
Did government not learn from the real estate fiasco? Government incentived homeownership for those who couldn't afford it using Fannie Mae/Freddie Mac. Wall Street took that bag of money, securitized it, and damned our parents.
Government incentives higher education with more funding in Pell Grants. Wall street took that bag of money, and created an industry (Online education [Phoneix University/Devry ....]] that prints diplomas. But the quality of education is questionable, and offers unemployable skill sets. This misallocation facillitates structural unemployment, because of the mismatch in skills, and what the market wants.
Wall Street took that bag of money, and damned our young.
Like I said, Wall Street is the mechanism in which capital is distributed, and if it becomes broken, corrupted, or utilizes a false incentive schema, we witness, imbalances, price distortions, and misallocation.
clean up wallstreet.
Let's not forget the whole "selling crappy stocks they knew were crap" thing. Wall Street sold shit stocks then shit mortgages.... what's next?
Shit shool loan debt bubble.
Sallie Mae = Fannie Mae
Meanwhile, "non-profit" college "executives" get paid millions of dollars + all kinds of bennnies including job security, dirt cheap cost of housing and sometimes paid for in comparison to private sector.
Even at shitty party school like Arizona STate University, you have many admins making north of $200k+
Not only limited to universities. Even Jewish non-profits! http://benatlas.com/wp-content/uploads/2010/12/SalariesJewishFederations.jpg
No wonder Yale's MBA specialty is in NON-PROFIT, because that's where the cushy money jobs are these days.
These days, private workers are the SUCKERS!!! no job security, profit driven stress, outsourcing, global labor market salary and competition, little to no retirement funding, high cost of living, after taking out massive student loans.
This is why OWS is angry. This is why young Americans are angry.
Shit school loan debt bubble.
What consequences has anyone had to learn yet, really? Many, many haven't even felt the real pain of the downturn... especially not those associated with the government.
Further, all of these bubbles sprang forth contemporaneously... the mechanism for all being cheap credit... the genesis of which is the desire to vote one's self the benefits of the treasury (although the vote might have resembled more of a check/bundle of cash/favor than a vote).
government subsidies only end up inflating shitty assets just like they did with housing.
if you want government policies to be effective, make it cut costs with productivity gains by introducing competition. but democrats just throw more money at their friends to overinflate shitty assets which makes fiscal conservatives angry and they end up cutting elsewhere.
This is the paradox of central planning... as soon as you decide the winner, it inevitably becomes a loser (ninny of the nanny state)... unless it is the decider self-dealing...
It's not a democrat or republican thing... it's a government thing... and if you want government policies to be effective, then the best way is to reduce the size and scope of the government... because it cannot implement viable and beneficial policies... whether usurped by the few or overcome by the tyranny of the majority, it will fail. The trick is to get it the fuck out of transactions unless absolutely necessary and even then to do it on a shoestring budget.
You can trust that mean libertarians will rally against anything descent. A college education is a HUMAN RIGHT and all Americans should have the opportunity to get a college degree. One of the reasons our economy is lagging is because there is a serious lack of good education in this country. Education is one of the most noble virtues, and no price is too high for a good college degree. Don’t worry about employment, just study what you are interested in and the jobs will come. That is the only way we are getting out of this economic crisis.
MDB, you are hilarious. I know damn well you are simply playing devil's advocate here on ZH, and that it is all tongue-in-cheek. +1
anything descent - very nice
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