Recovery threatened by student loan debt

Discussion in 'Economy' started by Nova78, Apr 3, 2012.

  1. Nova78
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    Nova78 Silver Member

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    Recovery threatened by runaway student loan debt | Comcast

    WASHINGTON — The federal student loan program seemed like a great idea back in 1965: Borrow to go to college now, pay it back later when you have a job.

    But many borrowers these days are close to flunking out, tripped up by painful real-life lessons in math and economics.Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis.

    With a still-wobbly jobs market, these loans are increasingly hard to pay off. Unable to find work, many students have returned to school, further driving up their indebtedness.

    Average student loan debt recently topped $25,000, up 25 percent in 10 years. And the mushrooming debt has direct implications for taxpayers, since 8 in 10 of these loans are government-issued or guaranteed.

    As always the taxpayer is left holding the bag, this Country is in deep -do -do ,you were lied to...........
     
  2. TakeAStepBack
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    TakeAStepBack Gold Member

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    It's a potential catalyst.
     
  3. Katzndogz
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    Katzndogz Diamond Member

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    There is no recovery. Democrats have to start laying blame early for the lack of recovery so they could at least say there would have been a recovery if something else wasn't blamed.
     
  4. TakeAStepBack
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    TakeAStepBack Gold Member

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    The "recovery", is merely the throws of attempted stabilization in markets. There is still al lot of toxicity being moved around and blanketed over in order to spur growth. It is likely short lived. Take a look at the Euro and the EU. They had this momentary "shit looks good" followed quickly by, "ooops, shit doesn't look so good afterall".

    This isn't much of a partisan issue, it's a monetary one. Both sides have played along for decades. What's another bust on a bubble?

    Time will tell.
     
  5. Nova78
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    Nova78 Silver Member

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    Some are blind to the truth.

    There are 365 days in a year, 24 hours in a day, and 60 minutes in an hour. That adds up to a total of 525,600 minutes. Divide that figure into the $3.6 trillion in FY2010 spending and you find that the federal government spends about $6.85 million per minute. :clap2:
     
  6. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says. "What do it matter? Dey not payin' their loans off as it is...
    :eusa_eh:
    House votes to extend low rates on federal student loans
    26 Apr.`12 WASHINGTON – The U.S. House approved, on a mostly party-line (215-195) vote, a $5.9 billion bill to maintain low interest rates for Stafford student loans, paying for it by slashing funds for a provision of President Obama's health care law.
     
  7. Mr. H.
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    Mr. H. Diamond Member

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    I heard on the news that this doubling of student loan interest rates will result in an extra....

    $100 per year average.

    BFD
     
  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    Obama's political posturing may be negated by "regulatory uncertainties"...
    :eusa_eh:
    Student Loan Rates May Rise Regardless of Politics: Fitch
    4/30/12 --- Both President Obama and Republican party standard-bearer Mitt Romney support extending low-interest rate student loans. But regardless of whether that happens, student loans could still wind up being more expensive.
     
  9. waltky
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    waltky Wise ol' monkey Supporting Member

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    Not Uncle Ferd - he was smart enough not to go to college...
    :eusa_eh:
    More Than 15 Percent Still Paying Back Student Loans at Age 50, Economics Professor Says
    May 4, 2012 – Many college students are not earning enough to pay back their student loans, because they choose majors that pay too little upon graduation, and 15 percent of college grads are still paying back student loans at age 50, Peter Morici, University of Maryland Economics Professor, said Thursday.
     
  10. rdean
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    rdean rddean

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    Republicans answer is to cut funding for schools. Close those fuckers. They are all hotbeds of liberalism. Besides, according to some conservatives at the USMB, they taught themselves computer language, physics and how to read.
     
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