40% of Student Loans are Delinquent as University Rates Explode

Discussion in 'Economy' started by KissMy, May 2, 2011.

  1. KissMy
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    KissMy Free Breast Exam

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    2 out of 5 student loans are delinquent while university cost climb twice the rate of inflation, faster than health-care or any other segment of the economy. 63% of student borrowers can't make their student loan payments on time. Some university's get 87% of their revenue from Government backed student loans. This money does not all go to education, it funds student debit cards that can buy anything. Students are using the money to live the good life buying Beer, Pizza, Shoes, High Fashion Clothes, Cars, Gas, Jewelery, etc. This is a $1 Trillion subsidy to liberal professors & the unemployed.

    CNBC: Price of Admission
    NYT: Loan Study on Students Goes Beyond Default Rates
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    The last I heard, the student loans can not be taken into BK. Is that still true?
     
  3. KissMy
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    NO! The new healthcare law now has the government pay off student debt if they can't pay it back. If you are a government employee the government will pay off your defaulted student debt sooner.
     
  4. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    This is the next bubble to burst. The cost of a college education is getting to the point where it's no longer worth what you have to pay in order to get it. Another government created problem.
     
  5. william the wie
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    william the wie Gold Member

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    I saw an analysis the other day that claimed the Ph. D. glut began in 1969. CLEP everything possible and do everything else by correspondence and take just enough courses at a good college that accepts transfers of the credits to give your degree some prestige.
     
  6. GHook93
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    GHook93 Aristotle

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    That is true, the Clinton administration made student loans nondischargable. Look at where college tuition prices took off. It happened shortly after the bill. Colleges didn't need to offer a realistic price, because the banks gave away student loans like water. The pain of paying back the student loan is not felt until after college. The student loan crisis is real. It is making a whole generation of young people indebted to the federal government for life.

    Note: The Bush administration made things worse when they made private student loans nondischargable.

    Obamacare made things even worse when they federalized the student loan market. Now students pay through the roof and can't even get a decent rate!
     
  7. GHook93
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    Not true at all. I went to law school recently. I paid half myself and took out some student loans. $50K myself and $55K in loans. They government doesn't pay a thing here is what they do.

    For new loans you have to go directly to the federal government. That is the SOLE provider. It used to be you could shop around to a variety of lender or ones your school accepted and get the best deal; the federal government backed the loan if the student defaulted. Now the student can only go to the federal government to get a loan at a higher interest rate then what they could have.

    For consolidation. I know I tried to do it. Most my loans are 2.25 and 3.9%, very reasonable, but I have 2 loans one at 6.8 and 8.5%, not reasonable (Luck for me its was only $9K and change between the two of them, I paid most of it off in cash already). Consolidation with the new government lender works off a elevated median. Basically if you consolidate a 8.5 with 2.25, your new rate will be the media plus a .25 to .5%. Its robbery. It doesn't matter if rates in the open market are 1% you get what you currently have. They don't pay off shit.

    For the federal loan forgiveness BS. Here is how that works. Depending on the industry. You have to work straight for the government for a certain period of time, paying your loans the entire time. If you work for the private sector inbetween (and they will know because of tax returns), then you start all over. For lawyers they just bumped it up to 20 year (up from 10). I assume they have done it for other industries as well. The bar is high for it.
     
  8. KissMy
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    KissMy Free Breast Exam

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    Student Loan Forgiveness or Cancellation

     
    Last edited: May 2, 2011
  9. JamesInFlorida
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    JamesInFlorida Senior Member

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    Not all colleges/universities are public ya know.
     

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