Federal Student Lending/Delinquency Swells

[Trajan]

so who's surprised at this?? Make something easier to obtain, abrogate responsibility, let the Feds run it.....viola' for silliness and fiscal pain.

My daughter tells me of friends and hears stories of students who use the Pell grant to pay their Comm. college tab then take loans for $ 3-4K per semester as pocket money, while running up CC debt to boot.



Updated November 28, 2012, 11:48 a.m. ET

Federal Student Lending Swells

snip-
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

But rising student-debt burdens and stories about students and parents drowning in debt, coming just a few years after aggressive mortgage lending triggered a financial crisis, is focusing attention on risks to the government and borrowers.

"Is there any way the federal government could possibly come out to the good?" Sen. Bob Corker (R., Tenn.) asked at a Senate Banking Committee hearing in July on student loans, noting that the government demands no collateral and has no underwriting requirements. "What we're really doing is piling up debt down the road the same students are going to have to pay off."

Others are asking whether the government is encouraging students to take on too much debt. "The way the system works now…put money on the stump, people come and get it," said Anthony Carnevale, director of Georgetown University's Center on Education and the Workforce. "Can't blame them. It's sitting out there in plain view. It's easy to get."

more at-
Federal Lending Push Swells Student Debt - WSJ.com

 

[AmyNation]

Student loans prey on the young and stupid. They encourage you to take large loans every seamster. 18 years olds don't know squat about interest and they all think "of course I"ll have a great job after college".

Student loans are for life, you can't ever get rid of them, and they will dock your pay and take your tax returns until its paid off.

 

[Soggy in NOLA]

What a plan.. "here's some money, get a good education so you can be successful, then when you succeed, I'll tax you at a confiscatory tax rate... and oh yeah, vote for me!!!!!"

And they did...

 

[Dont Taz Me Bro]

This is not surprising. The same principles that caused the housing crash is driving this too. People never learn.

 

[Dreamy]

so who's surprised at this?? Make something easier to obtain, abrogate responsibility, let the Feds run it.....viola' for silliness and fiscal pain.

My daughter tells me of friends and hears stories of students who use the Pell grant to pay their Comm. college tab then take loans for $ 3-4K per semester as pocket money, while running up CC debt to boot.



Updated November 28, 2012, 11:48 a.m. ET

Federal Student Lending Swells

snip-
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

But rising student-debt burdens and stories about students and parents drowning in debt, coming just a few years after aggressive mortgage lending triggered a financial crisis, is focusing attention on risks to the government and borrowers.

"Is there any way the federal government could possibly come out to the good?" Sen. Bob Corker (R., Tenn.) asked at a Senate Banking Committee hearing in July on student loans, noting that the government demands no collateral and has no underwriting requirements. "What we're really doing is piling up debt down the road the same students are going to have to pay off."

Others are asking whether the government is encouraging students to take on too much debt. "The way the system works now…put money on the stump, people come and get it," said Anthony Carnevale, director of Georgetown University's Center on Education and the Workforce. "Can't blame them. It's sitting out there in plain view. It's easy to get."

more at-
Federal Lending Push Swells Student Debt - WSJ.com

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

http://www.mumbainews.net/index.php/sid/211020365/scat/3a8a80d6f705f8cc

 

[elvis]

This is the next bubble, if you will.

 

[Soggy in NOLA]

so who's surprised at this?? Make something easier to obtain, abrogate responsibility, let the Feds run it.....viola' for silliness and fiscal pain.

My daughter tells me of friends and hears stories of students who use the Pell grant to pay their Comm. college tab then take loans for $ 3-4K per semester as pocket money, while running up CC debt to boot.



Updated November 28, 2012, 11:48 a.m. ET

Federal Student Lending Swells

snip-
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

But rising student-debt burdens and stories about students and parents drowning in debt, coming just a few years after aggressive mortgage lending triggered a financial crisis, is focusing attention on risks to the government and borrowers.

"Is there any way the federal government could possibly come out to the good?" Sen. Bob Corker (R., Tenn.) asked at a Senate Banking Committee hearing in July on student loans, noting that the government demands no collateral and has no underwriting requirements. "What we're really doing is piling up debt down the road the same students are going to have to pay off."

Others are asking whether the government is encouraging students to take on too much debt. "The way the system works now…put money on the stump, people come and get it," said Anthony Carnevale, director of Georgetown University's Center on Education and the Workforce. "Can't blame them. It's sitting out there in plain view. It's easy to get."

more at-
Federal Lending Push Swells Student Debt - WSJ.com

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

Problem is you have these idiots getting Ph D's in Druid Philosophy and Post Bolshevik Vagina Studies and other such mindless drek.

Engineering majors are doing just fine.

 

[Zoom-boing]

One of my daughter's friends, 'V', that she graduated with this past May, borrowed every single dime for school. Private college, lived on campus three years, commuted the past year ... she did this because this is what my daughter did. And yes, I mean V went to this school because my daughter and another girl they both went to high school with went here. V also commuted her last year because my daughter did. V's parents - financially inept and I'm being nice when I say that - never once said to her "you/we can't afford this school". Her last year of college her parents said they wouldn't co-sign anymore loans for her so she had someone she worked with co-sign.

V moved out to California a few months back. She, my daughter and the other girl were all tv/film majors so moving to CA seems like a good idea, right? Well, she moved there because her boyfriend decided he wanted to go to music school there so V followed him. She does have a job ... working at Walgreens. She transferred from the Walgreens here. She doesn't even have a resume put together. She's in freaking California and is a tv/film graduate. Knowing her (she was a 'slider' in school, was the type who road on the coat tails of others, and gained the sympathy of teachers (oh woe is me, this and that happened which is why my assignment is late/incomplete, blah, blah, blah) to ease out of assignments, etc) she will do nothing with this degree, she will remain at Walgreens while in CA.

Student loans have to start being paid back starting next month. ONE of her loans is $1,100 per month. She posted on Facebook a few weeks back and her total loans equal close to $100,000. I do not foresee her ever paying these loans back in full, I don't see how she will even manage paying back a few months worth. And there are many, many more "V"s out there.

 

[jillian]

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

do you not think people should be educated?
or do you only think rich people should be educated?

 

[Dreamy]

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

what's mumbainews.net?

you think that's a reliable source?

that aside, do you not think people should be educated?
or do you only think rich people should be educated?

I used that because the original link was not working. Just an FYI Jillian. Not all links are the actual source of the news. They just carry the news. Put the actual headline I posted in a search engine of your choice and you will find the original link and source. Hope that helps you with your concern about the source.

that aside, do you not think people should be educated?
or do you only think rich people should be educated?

No Jillian I do not think people should be educated, well just rich people. Dear gawd, are you for real? I took out student loans and paid them off myself and also have a college degree so what do you think lady? Notch up your game and stop asking me ridiculous lamebrain questions.

Now are you able to actually discuss this topic which is hardly a partisan issue. It is troubling for all.

 

[PoliticalChic]

Student loans prey on the young and stupid. They encourage you to take large loans every seamster. 18 years olds don't know squat about interest and they all think "of course I"ll have a great job after college".

Student loans are for life, you can't ever get rid of them, and they will dock your pay and take your tax returns until its paid off.

....same reasons they vote Democrat...

 

[Dreamy]

The question I have seen asked is whether bankruptcy judges should be allowed to modify private student loans?

Also remember there are private student loans and Fed loans and some state loans too and they all fall under different rules.

 

[PoliticalChic]

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

do you not think people should be educated?
or do you only think rich people should be educated?

Do you think that loans are the only way to get the education?

1. Work Study Programs
2. Work you way through
3. Work at a job where your major will be paid by the job
4. Night school
5. Community College, then transfer
6. ROTC will pay a scholarship
7. Take eight years….ever hear of anyone asking ‘how
much time did you spend in college..?’

'Big Daddy' government isn't always the answer.

 

[Mad Scientist]

The Federal Reserve loans out 7.7 Trillion to Banks who then play the Stock Market with it.

Total Student Debt is 1 Trillion. Why not just forgive all that debt? You know what a great lift that would be to our economy and those young people just starting out?

The Gov't wants to give Amnesty to Illegal Aliens but doesn't even THINK of forgiving Student Debt?

Oh that's right! The Gov't WANTS you to be a Debt Slave!

 

[eflatminor]

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

do you not think people should be educated?
or do you only think rich people should be educated?

False premise. The government should not control the market for borrowing money to go to school. Nothing in the Constitution grants that power and as we've seen with all centrally planned markets without real competition, costs skyrocket and results suck.

 

[PoliticalChic]

so who's surprised at this?? Make something easier to obtain, abrogate responsibility, let the Feds run it.....viola' for silliness and fiscal pain.

My daughter tells me of friends and hears stories of students who use the Pell grant to pay their Comm. college tab then take loans for $ 3-4K per semester as pocket money, while running up CC debt to boot.



Updated November 28, 2012, 11:48 a.m. ET

Federal Student Lending Swells

snip-
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

But rising student-debt burdens and stories about students and parents drowning in debt, coming just a few years after aggressive mortgage lending triggered a financial crisis, is focusing attention on risks to the government and borrowers.

"Is there any way the federal government could possibly come out to the good?" Sen. Bob Corker (R., Tenn.) asked at a Senate Banking Committee hearing in July on student loans, noting that the government demands no collateral and has no underwriting requirements. "What we're really doing is piling up debt down the road the same students are going to have to pay off."

Others are asking whether the government is encouraging students to take on too much debt. "The way the system works now…put money on the stump, people come and get it," said Anthony Carnevale, director of Georgetown University's Center on Education and the Workforce. "Can't blame them. It's sitting out there in plain view. It's easy to get."

more at-
Federal Lending Push Swells Student Debt - WSJ.com

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

Problem is you have these idiots getting Ph D's in Druid Philosophy and Post Bolshevik Vagina Studies and other such mindless drek.

Engineering majors are doing just fine.

Fields of Study
A sampling of some students' D-I-Y majors
• Ethnobotany
• Magic
• Ethology (animal psychology and behavior)
• Music promotion
• Anthropology of mental health and illness
• Peace and conflict resolution
• Historical clothing
• Sociology of fashion
• Environmental racism
• Complex organizations and informational systems
• Neuroscience, human behavior and society
• Asian-American studies
• Bioethics in crosscultural perspectives
Can't Pick a College Major? Create One - WSJ.com

 

[Dreamy]

so who's surprised at this?? Make something easier to obtain, abrogate responsibility, let the Feds run it.....viola' for silliness and fiscal pain.

My daughter tells me of friends and hears stories of students who use the Pell grant to pay their Comm. college tab then take loans for $ 3-4K per semester as pocket money, while running up CC debt to boot.



Updated November 28, 2012, 11:48 a.m. ET

Federal Student Lending Swells

snip-
U.S. student-loan debt rose by $42 billion, or 4.6%, to $956 billion in the third quarter, the Federal Reserve Bank of New York said Tuesday. Overall household borrowing fell during that period.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

But rising student-debt burdens and stories about students and parents drowning in debt, coming just a few years after aggressive mortgage lending triggered a financial crisis, is focusing attention on risks to the government and borrowers.

"Is there any way the federal government could possibly come out to the good?" Sen. Bob Corker (R., Tenn.) asked at a Senate Banking Committee hearing in July on student loans, noting that the government demands no collateral and has no underwriting requirements. "What we're really doing is piling up debt down the road the same students are going to have to pay off."

Others are asking whether the government is encouraging students to take on too much debt. "The way the system works now…put money on the stump, people come and get it," said Anthony Carnevale, director of Georgetown University's Center on Education and the Workforce. "Can't blame them. It's sitting out there in plain view. It's easy to get."

more at-
Federal Lending Push Swells Student Debt - WSJ.com

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers' ability to repay, or about what sort of education they intend to pursue.

President Barack Obama championed easy-to-get loans during the campaign, calling higher education "an economic imperative in the 21st century." A spokesman for Education Secretary Arne Duncan said the goal is "to make student loans available to as many people as possible," and requiring minimum credit scores would block many Americans from going to college.

Crazy!

And the myth or illusion about what a 4 year degree will get you in this economy continues.

Student loan debt nears $1 trillion: Is it the new subprime?

Mumbai News - Student loan debt nears $1 trillion: Is it the new subprime?

Problem is you have these idiots getting Ph D's in Druid Philosophy and Post Bolshevik Vagina Studies and other such mindless drek.

Engineering majors are doing just fine.

Yup. A liberal arts degree is not worth the cost of the education imo.

 

[AmyNation]

There are some jobs that all you need is that piece of paper, doesn't matter what it's in.

The real problem is college has become an extension of high school, so instead of being filled with adults who have a specific job in mind that they need that piece of paper for, it's filled with kids who have never had to wash their own clothes, let alone make huge decisions that will effect the rest of their lives.

 

[Zoom-boing]

The company I used to work for had tuition reimbursement. Many took advantage of it, a lot to get their masters. But one guy I knew started at zero, no degree of any kind. Through the reimbursement program he got an engineering degree. Took him eight years and he was over 40 when he was finally done but he did it without any debt.

Amy -- when I went back to school to finish my degree I had to take math. My oldest was in 8th grade at the time and we were doing the same math. X and Y axis, plotting on a graph . . . nothing I will ever use in real life. You're right ... it is an extension of h.s., many of the same material (or very similar material) is taught. I never understood why you needed two years worth of 'gen ed' stuff (the stuff you were suppose to have learned in h.s. for the most part). Why not just learn your field of study?

 

[AmyNation]

Yup, it was my least favorite part of college. Classes are expensive, and I was always very aware of what a waste of money and my time each of those classes were.