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"The Student Loan Racket" - The Complete Infographic
When we looked at the latest release of consumer debt a few days ago, we spread the data into its constituent government and non-government loans. Needless to say, taking away the "government" means consumer credit has imploded. So where does all this government debt go? Two places: car financing (see previous post about retail sales surging on a spike in car sales especially subprime loans to Government Motors clients), and student loans. Below we look at the letter. As the following infographic from HealthcareAdministration.com shows, student loan debt, now at $830 billion, has surpassed credit card debt—a statement not likely to have been heard 20 years ago. Student loans, unlike any other form of debt, cannot be forgiven via bankruptcy—these loans must be repaid. Is this the next bubble to burst? Look for clues in this comprehensive infographic.
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this is nonsense, do you blame a 3 year old for beleiving in santa claus if his/her parents tell him/her that he exists?
People are ignorant, becuase they are lied to constantly, and they do not know any different. The people at fault are those that know better and pray upon this ignorance. Not only that they do things to perpetuate the ignorance.
Thats FINE Waffen! But just because someone else is brainwahsed and ignorant doesnt mean its ME that should pay back their kids student loan.
Who said it should be you? Focus your anger at the Morlocks not the Eloi.
Look, you know everything is fucked up beyond belief. IMO, all debts should be forgiven, all, house, car, student loan, and make the banks take all the losses. We are gonna have hyperinflation anyway, lets atleast help the people and reset.
Then we can have real proper lending practices in the future.... End Public education while we are at it.
See I have thought about that and the problem with a "jubilee" as some call it is that it will reinforce that people need not have personal responsibility and if they don't have to pay debt back now why should the ever? They will just take out much bigger loans immediately after the "Great Debt Forgiveness" event wouldn't they? Hell I would! Imagine everyone being forgven their mortgages how many people would rush to get a mortgage that previously didn't because they were "responsible" believing they too won't have to pay.
uhm.. who would be dumb enough to loan money? If they are shame on them.
basically be the end of credit for some time.
So you are advocating the end of all economies except for barter?
just a return to sound money to flush out the all the bad debt
I think the government would likely be dumb enough to loan money. That's where the problem all started anyway, so unless we dismantle the government-enforced currency monopoly, a jubilee is just a big-ass bandaid.
Wow, that'd be pretty damned stupid, don't you think? I'd think a debt forgiveness program of such grand scale was a once-in-a-lifetime thing and not expect a repeat if I got into trouble again. Then again, I'm not a bankster coddled by the government over and over and over and over...
No-one deserves to be forced to pay someone else's bills.
I can't think of one country or territory that has no freeriding.
Thats exactly the point, no one should be forced to pay for someone elses poor decisions, like insisting their little C avg student goes to a 30K per year college on a loan!
If some people deserve to be slaves then sooner or later they will need 'your' money to pay for their healthcare, etc. because they can't afford it, and you have to maintain them as a source of cheap labor (if they are so likely to get a job... if not... welfare).
No one should be forced to pay for someone elses poor decisions... You live in this society. Your leaders (private and public) created a system that 'deceives' parents and students alike. Banks don't complain for obvious reasons. But tax payers do. Why? Because the student-loan system is created to be a risk-free investment for the participating banks and if something goes wrong the tax payer gets the foot. YOU will pay for someone else poor decisions if you like it or not... ITS DESIGNED THAT WAY!!
Slaves or no slaves (I take it you are not a slave) we all pay. Once again our leaders sold us out with advertising that a higher education will benefit society, increase living standards, promote and create jobs, etc. etc.. What they failed to tell is who is on the other side of the bet and under what conditions. Its pretty clear this forum (and this post) shows who is on the other side.
If a society makes 'slaves' then society has to take care of them. If you like it or not... it doesn't really matter what you like or not because you are not in charge. It happens. Its called welfare, healthcare, etc.. But then you get mad because and claim welfare and healthcare, etc. are socialist, communist, etc. programs and you don't like them and you don't want to pay for them and its un-american, etc. and your solution is to end these programs.
Again... they system is designed to make a profit at every turn. No matter how ugly or ethical or righteous, groups of people are making large sums of money. In a society that has an option to 'become a of your own will slave' then in that society you NEED an option that 'takes care of them when shit hits the fan'. Make the student-loan system more 'ethical' or at a minimum... have participating banks loan government dollar (tax payers future promise/bernankes printed bills tomorrow) with RISK.
Why not? We all just got forced to pay for the monetary elite's three trillion dollar mistakes.
Solution to solve student loan default and social security. You default and you dont get social security until you are 75.
i don't know.
that's probably in the works anyway for all of us now.
better make it 85.
As long as jobs are plentiful, hell, let's make it 95.
Sudden Debt
The self-congratulatory puffery of yourself and some others is rather tiresome.
Education should be FREE for all to learn, and not just for job-training.
Your implicit (class-based) notion that education should only be given to those who can personally pay smacks of reactionary elitism at its smug worst.
education is free--its the fucking sheepskin that costs-- so if you look the asshole in the eye and know he is dumber than you, why feel that you need him to accept you as his equal--- you just lower yourself. when you get to a level of expertise that exceeds all others you have to be self taught anyway-- Like most things in todays world this need for education is a lie as well. educate your self kids --be wise--seek out knowledgeable people --stay free of debt-- learn a day job with small rewards and build your education the old fashion way-- you will not be disapointed with your life--trust me on this.
Your antipathy for those with a formal education is irrelevant to the point that formal education in the arts sciences, math, engineering, etc. does have benefit. Your notion that formal education is “a lie” and young people should just get a “day job” and learn on their own is ridiculous.
Define 'free'? Oh you mean someone else foots the bill? Sure, why not? We'll all benefit right? Because if we have to educate them for nothing then we shouldn't have to pay them anything later on correct? Oh, you mean we have to pay them more now because they're educated and thus deserve more right?
Education is 'free', it's called life. Fuck you by the way.
Your desire to get a free ride by enjoying the benefits of society (e.g. medical care) without contributing anything to society to provide those benefits to yourself and others (e.g. medical training ) is both obvious and narrowly selfish, an attribute which complements the demeanor of your discourse.
Have you ever been to a fucking Library ?
Yours is a lazy and effete notion (class based) that everyone wants what you offer.
I have been to many libraries, and often.
Thanks for asking.
Education, like the libraries, should be FREE.
As for going to “fucking” libraries, perhaps your impression of what typically happens in libraries is due to an overactive imagination.
These "suckers" are the perfect prey, just out of high school, where they have had absolutely no education about personal finance and no experience with credit, completely clueless, suddenly someone is there saying, "hey kid, want to go to college? Here's some free money, sign here, don't worry you won't have to pay it back until you're making big money with that high powered social studies degree you're going to get from the University of Phoenix" It's shamefull, and it's just a matter of time before it emplodes and leads to another crisis that will undoubtably require some kind of government bailout, with everyone saying."we couldn't have possibly seen this coming".
lie to old people and they say "I should have known" lie to kids and they hate you forever and will get even--
this college loan thing is the absolute worst that the status quo could have pulled off--they will die because of it. Between the kids that are being screwed with this and the non violent drug war felons that will get out some day we have the makings of a hell to pay situation.
bingo ! monoloco ~~ yours is the winning comment, they young generation was victimized .
Hell U of Phoenix is cheap compared to an Ivy League degree in Ancient Human Sex Practices or studying to cure rectal cancer in fruit flies.
yeah. how can they make a 4 year curriculum out of smacking your date on the head with a club and then dragging her by the hair back to your cave for some doggy style?
I have a job here for anyone with a degree in Ancient Human Sex Practices, please contact me promptly. Good benefits.
You must keep in mind that the government diseducation centers condition children that they must go to college, and they can "be whatever, they want to be" the world is their oyster if they just get a degree etc etc.
they are led like sheep to slaughter
its hard to be mad at children who are fed lies from their public schools for 12 years.
The "you can be anything you want to be" is the biggest lie told to children. The reality is far harsher than that. I have two sons, and I don't make them falsely believe they can be a doctor, lawyer, etc. Their present strengths and weaknesses in school tell me that. I will likely steer them toward a trade such as plumbing, welding, carpentry et al. I'm their parent, it's my duty to know their boundaries, and guide them appropriately. But I am one of the few parents around here that faces reality. What we've taught our kids nowadays is to be Narcissists. Sad...
Little Jimmy needs to be taught that he must work with what brains, and talents he was dealt. If he likes to work with his hands, yet can barely squeak through Grade school, maybe he shouldn't be told he can be a doctor or lawyer, and should work towards being a mechanic or some other trade. (not saying tradespeople are not smart, the professions just have different expectations acedemically)
You're talking about kids. They don't understand what they are gettig into until its too late.
And those who can't spell "profession" or "luxury" perhaps shouldn't cast aspersions on the intelligence of young kids who plenty of behavioral research shows are simply not capable of understanding long term consequences of current behavior. The system that makes indentured servants out of them, and the lenders/educators that prey upon them, and the parents who need to become more informed about the reality of the situation, are all unquestionably more culpable than some hardworking teenagers thinking they are doing the right thing by trying to be the first generation of their family to go to school, let alone the "best" school they can get into. I hardly feel the same antipathy towards a bunch of kids who stretched to make something of themselves because people in a position of authority - who's counsel they trusted - told them it was a good idea that I do towards a bunch of grown adults reaching for homes they couldn't afford because they wanted to keep up with the Joneses. We should expect one group to know better and hold them accountable for their profligacy, we should change a system the enslaves an entire generation who are doing precisely the thing that they think makes them better off...
My little bro wanted to go to college here in Texas to study a subject he is both passionate about and talented in. To help him out I went to visit the college with him on the day they show people round. Thank god i did. I was under the impression we were meeting a professor, and for the first 10 minutes I still believed that. After 3 hours of hard sales, including the line 'i'll speak to my finance guys and they'll get you a loan' to the tune of 90,000 bucks. He also 'guaranteeed' my bro he would get a job after college.
Put simply, like all lending in our society, the vulnerable are TARGETED. Saying they should know better is exactly what the banks use to absolve themselves of guilt, despite the predicament we currently find ourselves in, which can clearly be traced to irresponsible and predatory lending. With jobs increasingly difficult to find and the benefits of higher education constantly flogged to the masses, I dont think young people wanting to better themselves is 1) Bad or 2) Surprising.
Its true, more often than not, they end up in jobs either unrelated to their studies or where they really dont need the education which they have paid for, but CHILDREN are not qualified to make that decision. CHILDREN do not have the foresight or experience to make that judgement. In the absence of a 'responsible' parent or guardian (also extremely and sadly common these days) how can you actually expect these kids to make the right and wise decision?
No, they don't need the useless education, but the _degree_ is a gatekeeper that braindead HR types lean on like a cripple on a crutch.
Wow! Crazy.
Especially cause I was one of them. It flet like I just kept paying and paying. Did not understand the penalty free pre-pay back then. Such a scam. Especially Doctors, lawyers..... they keep raping their clients/patients for th erest of their lives due to this racket.
Education becoming a business, nto a calling was a sure sign of societal bust.
ORI
The Perversion of Language
You just brought up to industries who have experienced the most inflation due to government management, subsidies, and regulation. The libertarian philosophy may seem lazy to some, but the economic end of it is a splendid way to document the causes of these two industry problems; manager health care since the 60's (centrally planned healthcareadministration) and government backed loans (loans that would have never existed without the express backing of the tax payer's ass).
When the fiat casino games finally blows up, it's expanding at the seams now, perhaps liberty will be given a chance. That is what many are expecting to happen, including myself.
Pull your head out, ORI. The education business worked just fine before gov't started fixing the market.
What's that at the top of the infographic? A greedy businessman out for a profit? Nope, that's LBJ using government force to Make Life Better For Americans.
Stirner, come back to the land of the living. To believe, for even a moment, that LBJ did anything with wanting to make life better for Americans, then I believe your core thesis is off.
Stopping the Vietnam war would have done the American people just fine you know.
Not setting up a damn student loan racket.
ORI
The students with these loans today are planning to not pay these back by electing the right politician to forgive them.....look at the OWS people...they want free education....and guess what ....the politicians will forgive these loans....
I think what will happen is that these loans will hyper-inflated away along with all government obligations like SS and Medicare.
Then it will be up to the states to provide for the starving and the states will then void all federal income tax obligations for their citizens which will lead to civil war, constitutional convention and a restoration of the articles of confederation.
It won't be a civil war ... it will be a revolution - to drive out the foreign occupying army in Washington, DC and send them back to Rome, where they belong!
Yup, 25% VAT plus quadripling the property tax should take care of things...
Monkey see, monkey do. The government has hundreds of trillions of dollars in debt and only ever makes payments by borrowing more. Want a target for your self righteous anger? There it is.
Ooh, or how about the banks who have gotten trillions from the government to shore up their balance sheets after an orgy of excess and gambling? Or how about military contractors who give hand jobs to get a nice slice of that half a trillion dollar yearly military budget? Maybe the agribusinesses who own millions of acres of farmland and still accept farm subsidies. Or companies like Wal-Mart who encourage their employees to get on Medicaid and Food Stamps?
No, you're right, blame the college kids who did what they were told, and after getting an economics education in a public high school took on mountains of debt for the promise of a good job. What horrible, manipulative bastards.
I would rather give free money for education than free money to the banks, etc.
Nope, those loans have been securitized, cut up, repackaged, resold, just like Home loans, only worse. Goldman Sachs had much of the Florida market wraped up. When the secutitization happens, counter risk comes into play, Credit defaults are sold or taken.
Imagine where the cost of Medicine could go down to, if Loans could be BK'd on!.. So many of these "For Profits Schools" were and continue to be a joke, quality wise as to be a joke, passing out Diplomas to breathing bodies, coming to classes with little format and high incidences of Teachers not showing up to class.
the politicians will forgive these loans.... the day your Representatives quit taking their marching orders from Goldman Sachs (and friends)(ain't going to happen)
Nope, those loans have been securitized, cut up, repackaged, resold, just like Home loans, only worse. Goldman Sachs had much of the Florida market wraped up. When the secutitization happens, counter risk comes into play, Credit defaults are sold or taken.
Imagine where the cost of Medicine could go down to, if Loans could be BK'd on!.. So many of these "For Profits Schools" were and continue to be a joke, quality wise as to be a joke, passing out Diplomas to breathing bodies, coming to classes with little format and high incidences of Teachers not showing up to class.
the politicians will forgive these loans.... the day your Representatives quit taking their marching orders from Goldman Sachs (and friends)(ain't going to happen)
Another kicker is that the US Gov't has outsourced the servicing of these loans to India. When I paid off my loan I couldn't believe that I was talking to somebody in Bombay!
Thank you for calling. My name is Rajesh Bhagwan Chattopadhyay but you can call me Ed. How am I helping you today?
Hello...this Peggy....
this was all done intentionally to enslave the younger generation! if you're on food stamps, the bank owns your home, you cannot afford health care, the fed has you by the balls! you will comply, or else!!!
In 1922, prices for a pound of bread in Weimar Germany were around 160 marks. When the foreign market basically walked away from their bond market, their central bank willingly stepped in to take care of their domestic market that was flooded with German debt. By 1924 that same pound of bread was 200,000,000,000 marks.
Intentional or not, the fleeing of the Treasury market by China and other countries means that our Chinese credit card is being cut up (based on Tyler's article indicating foreign outlfows of treasuries). Bernanke has openly announced his willingness to extend the market credit off the asses of the people again. The same scenario is about to be played out and the debt will be hyperinflated away. The question is what comes out the other end of the tunnel after hyperinflation?
In 1922 a 1 mark silver coin (5.555 grams silver) would buy a few pounds of bread. In 1924 it still bought a few pounds (or even more) of bread, or a few billion in banknotes...
In 1964 a common dime would buy a good loaf of bread. Today that same dime can be exchanged for about the same value as a good loaf of bread. But a dime minted recently only buys a single piece of bread.
Lessons to be learned...
Oops, double post, sorry
Wish I could remember where I saw it, maybe Coyote Blog, author posted it pretty well that tons of people bought Cadillacs (Ivy League or other expensive school) in the form of college degrees when a Ford or maybe even a cheap motorcycle (community college or even a trade school) would have served just as well or better, and not saddled the buyer with a mortgage sized debt.
A debt, that from what I understand, can have up to 25% of your sociable insecurity check garnished if you haven't paid it by then.
Especially since the gubmint picked up all student loans a couple years ago... think that may be by design?
Any law against bankruptcy is a law for slavery.
Exactly, bankruptcy is meant to penalize the lender for lending to people they should not have loaned money to in the first place.
In any case, this whole thing is an iron triangle (govt-academia-financial complex). The education system can jack up the prices (not their problem you can't find a job and have loads of student debt) of tuition because there is more money (M2 loans i.e college loans) which only makes the price for education rise faster than regular inflation. 2, the loan industry is more than willing to make the loans because many are govt backed and the rest are backstopped by this stupid non-bankruptcy rule. 3. Congress, buying votes as always by "helping" the poor people/students get their educations to keep the economy and taxable incomes increasing. More like enslaving a whole generation of young people.
and to think, if they left the whole thing alone from the beginning, the cost of education probably would be going down, not up.
Slowly students are starting to figure this out and loans will move lower. But somehow the absurd salaries of University Presidents and their stooges will continue. Our young are being sacrificed for greed, again.
yes, just because many schools are "non-profit" doesn't mean they aren't out to make money.
Sometimes I think the so called non-profit sector is even more corrupt than the for-profit one. They just hide behind the veil of charity but many are not being charitable at all.
The ONLY non-profit agency that I know of, after researching many to leave donations after my late father's death was the Salvation Army.
Almost all, when looked closely, do not fit the common man's perception of non-profit.
The truth be known, the last place you learn anything usefull is in college. I work for a major state college and it is horrifically managed. They spend twice as much to get something done if compared to what a private company provided said service. Whenever a new person gets hired, they work for a month then realize they can give a 30% effort and not get fired.
Sure its a racket, so what I dont feel sorry for em, they line up for the loans, then pay them back. I never took out a student loan I worked a job all thru college.
WOW, 3 people DOWN vote 'pay back your loans'? Well boo hoo hoo!
No, because you're a fool if you believe you can "work your way through college" today.
You cant pay? Then dont go to college! BTW I worked thru college not 100 years ago, but only 10 years ago! So today is far different? Whatever!
No one 'DESERVES' a college degree, if you want it, go get it, and PAY for it!
What was your degree, how long did it take, and where did you attend? I'm not saying anyone "deserves" a degree. However, thinking your going to put yourself through engineering college while working double shifts at McDs (the most likely employer in this environment) is pretty asinine.
Math sciences + teaching cert, on a partial scholarship and worked as an electrician.
Sorry but "math sciences" sounds about as specific as liberal arts. Oh, and good luck finding work as an electrician now (on any schedule, let alone between classes) without certifications or a degree.
Happening as we type azzhat.
When I took out a loan it was called the national Defense Student Loan program, and it was students majoring in Engineering, and Sciences. When I went into the Army, I didnot have to make any payments and no interest accrued. If you taught after military service, one half was waved, but I paid back my student loan while in graduate school (Engineering).
Yes, most of these kids are getting degrees that are worthless. how many degrees in general studies, psycology, etc do we need.
The WSJ several years ago had several articles on this when BO was changing to a pure government loan program: one was a journalism student from the midwest that then went to Columbia for a Masters because of their reputation but could only get jobs that paid minimum wage and she couldn't live (i.e., go out every night, go on vacations, not eat Ramen noodles at night) because of her student loan debt.
The parents in many ways are partly responsible for not teaching their children about how to evaluate and compare costs versus expectations. Print journalism has been going downhill for some time, and unless you can keep looking like a 25-yr blonde you don't look good on TV.
"pay for my schitt, bitchezz!"
Another party on Wall Street. Cannot short this broken market for more than a day.
Yea another vapor pump....I'm beyond paying much attention theres way bigger things going on behind the curtain.
Fuck this "industry" and all those that work for it.
This the MOST IMPORTANT current economic story except with the possible exception of the rampant unprosecuted fraud that ocurred over the last decade. I know a lot of these college-age kids, and let me tell you that there is NO WAY (generationally speaking) that they will buy YOUR old home, or buy shit the way YOU did when you went thru your 30's and 40s. They are in so much debt, it is equal to a monthly car or mortgage nut for DECADES. This article, like most, focuses mainly on for-profit schools. Newsflash: the universities are just as bad (worse in my opinion as they front a a "public good"). I know docs, lawyers, and other professionals that owe so much money that they would have been better off becoming plumbers. This issue portends very badly for our economic future. I expect to hear more about a "student loan jubilee" in the near future.
Don't forget Obama's plan to "forgive" (i.e. push off onto the taxpayers) student debt if these people enter public "service". I bet that will be the angle so it looks like they are giving something back in return for the debt forgiveness even though most goverment jobs are way overpaid (including benefits) compared to the private sector.
Could this new 'law' be a way to get more 'enlisted'? Maybe it will be loans forgiven for say 3 years military service? See when you create false flags about Iran and want to invade them, you need much more cannon fodder. Maybe that student loan was a paymen on your azz, so they own you and can send you off to get wasted in the ME? Never know.
Once again kiddies:
If you get into a top college - go
If you can get someone else to pay for it (without incurring much debt) - go
Otherwise, you really need to do some serious math first and impress upon Mom & Dad or whomever that mortgage debt is the best debt.
A college diploma isn’t necessarily a ticket to anything and if you’re concerned about actually learning something, private secondary schools (which are more scholarship friendly) might be a better bang for the buck.
I gots me an adumacation and all I got was this lousy defaulted student loan debt that cannot be discharge unless you are creative and place on an unsecured credit card, pay it for a few months, and then challenge the debt on lack of financial consideration or bankruptcy.
Nahh....wouldn't fit on a T-Shirt
I went to college and all I got was this lousy debt and worthless paper certificate.
Better.
How about a t-shirt that says, "I Got Student Loans Up the Ass".
How about:
I Got a student loan
I AM AN ASS
Google NIA College Conspiracy
Solution is simple. End federal backing of student loans. Watch tuitions plummet as colleges scramble to become more competitive as the federal subsidy goes away.
Not saying your right or wrong, but are you aware of the Bonds that these Colleges represent? Essentially, if Tuitions drop, Colleges start going Bankrupt. Not for Profit does not mean "not financed".
100% Correct.
End Federal backing of Child Support as well and watch divorce rates plumment as the handouts and hordes of "social workers", Child shrinks, and lawyers have to find new employment. But this is a bad thing according to TopCallingTroll.
Paying all that money just become indoctrinated.....excuse me I meant educated
Heard that there are a lot of girls who work as part-time prostitutes just for some useless pieces of paper on the day of graduation.
I don't go to those places, but a friend of mine prefers strip clubs in college towns, because of all the broke college girls working there.
.....And people want the government running health care for the entire country. Jeezuz.
The graphic above should be shown to anyone who doesn't understand that subsidies create dependency - and you get more of whatever you are subsidizing (debt in this case).
deleted
My favorite for idiocy is someone with a large student loan and a useless degree in Women's Studies. Good luck with that friggin' crap degree.
Maybe his degree is for becoming a toy boy in the future.:)
Yep LoanStar, $150,000 student loan debts and they come out with some political science or studies degree and now they cry about how its all so unfair and they cant get a job? Should have taken welding.
Agreed, if you studied music, nutrition or communications you DESERVE to be unemployed.
Worked for the current president of Amherst.
it's all about enslavement
Treasury Secretary Geithner Tells CNBC: US Will Help Europe With Debt Crisis (Story Developing)
Last year, the lending program changed. Now the loans come directly from the Federal Gov't and Nelnet, Great Lakes, and another company (I don't know the name) simply service the debt.
In your article, it is mentioned that along with student loan debt, Congress eliminated debt incurred due to fraud. Does this include mortgages obtained fraudulently?
I thought the government took over the student loan racket. Now the students are slaves to govenment for the silly loans they take out to purchase lattes iPhones, apts and trendy cars/clothes. Oh I forgot, fast food.
Anyone who signs up for a student loan from the government needs to be a debt slave to the govenment. You can't fix stupid. Used car salesmen and politians make promises and tell lies. Idiots believe them and get suckered.
You can't smarten up a chump, and never give a sucker an even break.
Anyone complaining that their debt cannot be discharged in bankruptcy is looking at the concept of debt entirely wrong.
can you explain?
Its a political correct way of subsidizing Colleges and professors that sounds great ..but in reality is a bad deal...colleges have expanded...womens´study..and other stupid majors...are a waste...when our Engineering and Medical colleges are filled with foreigners...oh well...we get what we vote for..
I rent to a college associate professor. To make ends meet she had to take a teaching position at two colleges.
Just where is the money going? Few professors are tenured these days, most make very little.
I am happy that we signed our kids up for pre-paid college, 14 and 12 years ago. We did so against the advice of many highly educated financial advisors who said we'd be better off putting our money in an alternate investment, like stocks. We were so dumb. We paid less than $5,500 each for our children to attend college. Today's prepaid college costs about $50k. Of course, the universities jacked up fees and other crap, but at least we can afford $500 per semester, as opposed to $5,000. Whew! I had to work three jobs to get through college because I was too scared to take a student loan and didn't qualify for a pell grant. Silly me.
Not silly you. Smart you.
My Brothers:
Born in America = Born in Debt
Collage Loans are just the iceing on the rotten cake
If the default risk is out of question, the interest rates on these loans should be below the fed rate, no?
University of Phoenix is soaking up that ultra-prime .gov money lol!
Food for thought. If they allow students to declare bankrupcy and write the loans off then banks will be reluctant to write new loans. This will cause less students to be able to afford college. After a while the tuition costs would have to come down to a reasonable rate that people can ACTUALLY afford. There may even be some competition between schools. Let a free market decide what tuitions should cost.
What you suggest would work as long as the loan losses are not transferred to the taxpayers as they have been with mortgage losses. The problem is the government guarantees. If there is no risk to the banks, they have no reason to stop making risky loans.
The government took over the loan racket so your solution is out of the question. Remember, academics are running the Federal Government now. They are smart enough to make sure the gravy train continues for them. They don't care a bit if all the young people are debt slaves to pay their $250K salaries as head of the ethnic stuides department.
Great visual aid. I have been preaching about this racket of enslavement to the young and their parents only to see the kids get loans. There always seams to be a problem with payment, fees and or collection. I know several cases in which an initial student loan debt of $30k and under very quickly pass $100k in less than a decade. Both the banks and the schools misrepresent and deceive prospective students that are under the idea of going to college to be educated.
I think most college students feel entitled and expect to party for four years then get a high paying job doing something not particularly useful.
This is a travesty. When this information goes mainstream, it's not going to go over well with the populace that big government and corporations are preying on the young.
I have little faith in our fellow man to do the right thing.
Most likely, big government and the corporations will get away with it.
Our country is so fucked it's not even funny -- I'm not content with this at all but that's the way I see it.
Couldn't agree more. Lived in PHX for four shitty years and everytime I took a trip up north to Flagstaff it was like Shangrila. Building a massive, sprawling city where THERE"S NO FUCKING WATER make no sense.
you ever see what the dolphins sometimes do to their young males in the group......reminds me of this
No, what do dolphins do? Does the answer explain the fascination that some women have with dolphins? Is it survial of the fittest? Are dolphins smarter than people? What is it?
My high school daughter came home yesterday and told me that the boys are weak. She asked were the boys wimps when you went to school, and why are they like this now? I told her no, when I was young, boys worked in the fields after and before school, hunted during the winter and fished all summer long. I told her that now, they are being raised by their single mothers and eat hormone filled chicken nuggets.
AHH ha ha haaa priceless!
Yea arent most men in college today majoring in 'Womens Studies' degree or some such nonsense?
his ever escalating education scam will not continue. I will not allow my children to be the prey of banksters and their accomplices in higher education
If any good comes of this, the younger generation will make sure their children aren't duped by this bullshit. The baby boomers completely fell asleep at the wheel on this issue. They did on just about every issue now that I think about it.
There's nothing wrong with an education. I spent 3 of the happiest years of my life in the forth grade.
The core of this problem starts with the first day of kindergarten when mommy and daddy choose to have junior indoctrinated by the system. From DAY ONE they are told to prepare themselves for a college. Many of them are so brainwashed after 13 years, that the idea of not going to college makes them feel like an outcast dumb-ass at best and suicidal at worst.
Good flow chart, but they need to also include the cost of tuition and how that has severely outpaced wage growth. Seems to be a bubble about to pop, kind of like how home prices were rising substantially compared to inflation/wage growth.
No garnishment in Texas. I'm thinking of moving there and starting a student loan default commune. Not too many people went along with my idea about establishing new credit in a foreign country and ditching the U.S. (and student loans) for an expat life . . . . Though it's still on the table for me.
Maybe I can get a bunch of hot girls with student loans to live with me and be naked all the time for this brilliant plan. Yeah, Bitchez!!!!
Kinda puts a new spin when Barama says "free college for everyone".
I definitely feel the pain and anger of the younger generation.
I am the old man of generation x. I can give you some good advice.
Dont be afraid to chuck it all and seek your career and fortune overseas. There are fantastic opportunities for americans everywhere. Plus you will date model quality babes in the latin american countries and have a great life and many opportunities. All the cheap servants you want if that is your lifestyle.
Is it not better than a marginal existence barely scrapping by with impossible student debt hanging over you? Never being able to marry and have a normal life?
Go south for the best opportunities. Teach english for a year, learn the language, then go for your dream.
20,000 dollars is enough to set up a viable business in most south american countries. Take a year or two to plan and investigate. Dont be afraid. There is no way to enforce a judgment against you in south america to pay your student loans. The economies are cash based and oh so alive! It will be the best sex and hottest girlfriends you will ever have too!
Drive a rental car down from the Texas border and sell it in Belize for your financial stake. Works like a charm.
Wait... you mean the HEA isn't promotinga 'free' market for student loans?
Shocking...
Wait... you mean the HEA isn't promotinga 'free' market for student loans?
Shocking...
the problem is right there in the graphic. 1965 Johnson signs the higher education act allowing millinos of students the ability to afford college throgh federally back loans and grants. more students, more demand, higher prices, large student loans.
nice job government. what are you fixing next.
Yep that is the problem, the idea that everyone deserves to get into college and the govt (you) should backstop the loan. Used to be, the ONLY WAY you got into college was on scholastic or athletic scholarship, or your family paid! Now every Johnny and Suzy D- avg just lines up for a 30K/yr loan for college because 'its the thing all the cool kids are doing' oh well its not my problem!
Difficult one. You say don't get involved in the first place government and nothing can go wrong. Others say government involvement had good intention but was manipulated by unscrupulous deviants who gamed the system while ignoring moral character, all because it was legal to and guranteed by the government to do so. Funny, but as people argue over cause, seems like the issues are linear and not counter opposed to each other. This same argument can be applied to the mortgage crisis. Guranteed loans so banks were never required to legally hold respectable lending standards. Maybe, just maybe, it's the banking industry lobbing the goverment for a never-ending cake walk and then when the guranteed shit hits the fan, the blame is diverted back on the initiator douche bag President who's no longer in office. What a perfect scam.
$830 billion...is that too big to fail? Fuck yeah, give me my bailout bitchez I got fucking fleeced. Banks fail and fleece the taxpayer...kids fail and we don't bail them out and don't let them go bankrupt in fact the govt takes there paychecks. Cool take there paychecks you say they deserve it but but but don't take the banks paychecks and redistribute it cause thats socialism...bad bad bad! Fuck the banks and fuck the government. Fuck it all, the whole system is broken and I'm sitting here arguing with some old motherfuckers who are 50 years brainwashed to think free markets are some sort of natural evolutionary biological law mother nature ingrained in us.
I hate to say it, but those who think these kids deserve to be exploited in this manner, spdeserve what's coming ahead.
'Exploited'? Hey no ones FORCING anyone to take out a student loan! If theyre such brilliant little stars so deserving of college, then wheres their scholastic scholarship?
And of course simple common sense gets down-voted...FIGURES!
Exploited doesn't mean to be forced into anything that's slavery. That's what comes after exploitation, come on get with it, exploiting is taking advantage of a situation because of an imbalance of power. It seems you think everyone should be homeschooled by there mom and dad, who by the way must both work full time and hold down 2 jobs a piece because the economic elites robbed the real economies through crony capitilism. But you're right these little shits should have seen through the 24 hour propaganda they were indoctrinated in and realized what the scam that was put into action before they were even born. Fucking kids can't grow up fast enough these days and their parents sure are fucking stupid too cause they fell for the same shit. Blame the fucking kids, that's right sheepdog, except you aren't much of a sheepdog are you for you don't protect you just deflect blame back onto the sheep.
You aren't using common sense you are ranting and foaming at the mouth oh Rabid One.
Exploited means they have been told that a degree is the best way to make money in the future, just like the stock market is sold as the best investment over time because it has the best ROI over decades without telling people that it is gambling. They are convinced since they start school that "successful" people go to college and going to a good school will certainly result in a high paying job in a desired industry; basically that college will lead to love, riches and happiness...but they never mention the massive debt incurred.
'ranting....and foaming at the mouth'....by saying that no one forces anyone to get a student loan, and if its too expensive for their brilliant little minds to get their 'entitled degree' then why arent they there on a full boat scholastic? Maybe if theyre so easily 'exploited' as you say, then they have no business going to collage in the first place.
Bullshit, you are conditioned from pre-school as follows: No college degree=gas pumper. You are discouraged from dropping out to work. You are constantly brain washed by consumerism.
Time for adults to take responsibility for the shit storm they have strewn. Half of today's graduates are unemployed and contrary to what Rush Limbaugh and some other highly visible idiots say, they did not put themselves into hock because they aspired to be life long Marxists. They were suckered into getting worthless degree in high finance and real estate science.
It amazes me how people are unable to comprehend the concept of predatory lending. Bankers certainly understand it very well.
And I say this as one who does not owe anyone a dime.
These are hedonic exercises; I do not want to pay for you stupid degree.
If it is a value to you, go for it, but don't come whining to me about being cheated.
Yea WilliamBanzai well maybe they should be pre-conditioned from preschool to get straight A's, then you can go to the college of your choice on at LEAST a partial scholarship!
Just saying that I dont understand 'predatory lending' is bullshit, if you take out a loan and youre not smart enough to realize that means youre now in debt and have to pay it back, then youre not smart enough to be in college in the first place.
Did students sign up for dumb loans, Yes. Has college tuition sky-rocketed as a result of the government-backed tuition loan programs? Yes. Are college graduates coming out of school with useful degrees or into a job market that is ready to absorb them in meaningful numbers? Not at all. But most importantly, do banks study how to sell the loans to kids who all want to succeed in life, since no one aspires to move back in with the folks and work at Starbucks after graduation? Hell, yes. Neither the kids nor their parents are apparently equipped to deal with the banks selling them hopes and dreams, when the alternative is presented as being part of the permanent underclass. "Just sign here:___________!
Given the government's involvement, it seems the next logical step will be to steer more into certain areas of study via more attractive loan terms, making that Comparative Lit or Fine Art degree more expensive than one in Mechanical Engineering.
The Limbaugh non-sequiter makes you look irrational. It implies that you listen to idiots say or don't know what you are talking about.
You voted for Obama, the One took over this scam, in order to force these idiots to work for the govenment, he has said it more than once, you got what you wanted. Are we at fault because you and other dumb asses don't do due diligence or even think about what they are doing - both in voting and taking out loans? Are you young people so stupid you have to be protected from every little thing? I have led young people in combat, 18, 19 years old, that make life and death decisions - choose right or die, or somebody else dies. Those young people did not vote for Obama.
You chose to vote for Obama, live with it. All the photochopped pictures in the world can't make up for your stupidity.
These idiots who sign up for these loans can tell you every thing there is to know about pop culture, but I bet if you asked them the terms of the loan or if it can ever be discharged in bankrupcy, I bet they don't know a thing.
They don't deserve anything, that's the problem they think like you, that they do deserve something. It's a hard world with hard consequences. Learn the lesson or get run over. That is reality. That is why they didn't used to let anyone under 21 vote. Because you were stupid, and easily manipulated at that age, even back then when kids went to work at 14 and at 21 most had families and farms. It seems the people who started this country were much smarter than the people running it the last 100 years.
I don't disagree with anything in the article, but I'll state this.......
Just a few years ago (2003 or 4, I believe) one of my family members finished law school in California. He didn't take out student loans. He charged as much as he could to a variety of credit cards. These CC charges included tuition. After he passed the bar he proceeded to file for bankrupcy. He did have a few lean years but he's now making a great six figure income and has all the trappings, and no student loan bills.
I couldn't do what he did, but he thinks I'm a fool anyway. His philosophy is to game the system for all that you can.
Sounds familiar, doesn't it?
Mr. Regression
Well if one is being gamed one is a fool for taking it without trying to fight back or leaving the game.
Sounds like a lawyer alright...no offense, but I hope he gets hit by an uninsured illegal alien driver and is crippled for life. Or he could just run for Governor.
Who will pay my mortgage ?
Not me says the student.
Not me says the government worker.
Not me says the Banker.
Unlike "education" a house can be used and then givin back.
If you want to learn, learn. You are the only person who can stop you.
If you are reading more than typing here @ZH, you are on the right track.
btw Mr. R your relative is an immoral asshole who planned to defraud. He's probably well suited for the law.
Doctors and lawyers gaming the system to discharge their debt = future generations honestly bankrupt enslaved to their debt infinitely. Educate your kids to financial literacy. If they've signed on for a predatory loan in the bliss of post adolescance, than the you the parents are to blame for their not understanding the potential implications. if you have no parents at that point, my guess is you are street smart and have avoided this scam.
Pride is ugly - name brand collegesare little different than an affordable state or comunity college. Better yet, remove the whole racket of the 'education' (miseducation?) system. if I have enough initiative to self study to the point of expertise (in a non-medical field mind you), allow a uniform test to deem me proficient. Where is the consumption when one sits around reading books? How do you chain / enslave the masses to debt of this nature when all the information most need to perform their career related functions could be accessed free via the nets and libraries?
Education as it exists today is merely a mental prison.