Student Loan Debt

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cantfishforshit.
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Student Loan Debt

Post by cantfishforshit. » Tue Apr 14, 2015 5:45 pm

Worse than previously thought.

http://blogs.wsj.com/economics/2015/04/ ... /?mod=e2fb

Student loans are proving to be a much bigger burden on households than previously thought.

Nearly one in three Americans who are now having to pay down their student debt–or a staggering 31.5%–are at least a month behind on their payments, new research from the Federal Reserve Bank of St. Louis suggests. That figure is far higher than official delinquency measures reported by the Education Department and the New York Fed. And it’s also likely the most accurate.

Here’s why: The official measures reflect delinquencies as a share of all Americans with student debt, but millions of borrowers aren’t even required to make payments yet. Many are currently in college or grad school and thus don’t have to make payments until six months after they leave. Others are out of school and past that grace period but have received permission by their lender—the federal government in most cases—to suspend payments for a range of reasons, such as being unemployed.

Including these borrowers in the broader pool of student-loan debt makes official delinquency rates artificially low. For example, figures from the New York Fed’s quarterly report on household credit shows roughly 17% of all student-loan borrowers were at least 30 days behind on a payment at the start of this year. That’s still a very high number, but misleading nonetheless.
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Hogleg
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Re: Student Loan Debt

Post by Hogleg » Tue Apr 14, 2015 9:48 pm

Been a while since I took out my first student loan. Circa 1989? I've taken out several more since then more recently to go back to school.

Funny thing is, each time I took out a loan they made it quite clear, explicitly clear, over-the-top and in-your-face clear, that I would have to pay those back eventually with very few exceptions. They made it clear that it would be nearly impossible to get out of paying back a student loan, even if filing for bankruptcy.

So we should be outraged that a bunch of folks made poor choices? Found out there's no such thing as a free ride? Found out that shit was real and there's no take-backsies?

Welcome to the real world D-wayne.

It can be a hard place for those living in the dream world.
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SLSS
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Re: Student Loan Debt

Post by SLSS » Tue Apr 14, 2015 10:11 pm

I do think it's a huge load on the economy- money being spent on college loan payments rather than general spending, but I don't understand why/how on earth kids get in so deep. When I took one out, in the dark ages, like Hog said, conditions were clear. Also I'd been raised to understand compounding interest, and was going to school for business where nearly everyday I saw someone salivating over the returns made in said interest.

It just baffles me that people go $50,000.00 - $100,000.00 in debt for jobs that probably won't pay more than $50,000- $60,000.

At the same time, I think there is a serious with banks borrowing money from the government (that would be us) in the neighborhood of 0% interest, and lending it to students at near loan-shark rates.
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austrotard
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Re: Student Loan Debt

Post by austrotard » Wed Apr 15, 2015 1:40 am

you nearly made it to a year.
but it's okay. I'm more than happy to remind you...
austrotard wrote:dude, I'm going to state the obvious to make it simple for you.

you piss and moan over student loan rates and tuition fees and minimum wage but guess what...

no twat here is a fucking struggling student. okay... maybe one in one hundred. but no one gives a shit. no one is forcing their hand.

the majority (major fucking majority) aren't worried about god damned tuition fees. sure, some of us have kids (side note: you don't and I'd like to personally thank you for that. cheers, mate. way to go. there's enough about and there really is no need to spread it around. so... thanks again.)
anyway like I was saying, some of us have kids and again, from a personal point of view I would think most have us have the fucking readies at hand that we don't have to worry over exorbitant fees. it is what it fucking is. if I want the best for my girls I will pay the most. we're fly fishermen for fuck sakes. we're all employed... we must have some wonga kicking about.

minimum wage.
do I really need to explain this to you?
do you reckon anyone gives a toss? do you think for one fucking second anyone here is on minimum fucking wage?
all right... I'll suffer this for a second... if we have employees that are on minimum wage we obviously run businesses that require them. they're ten a penny, minimum wage workers, and they're either simple or students or some fucking folk that need a couple hundred bucks for the week.
it's natural selection, you fucking moron.
have you got dentists and fire fighters packing boxes under your 'supervision'?
no. you've drug fucked spastics, maybe a couple single mums and general clowns who probably didn't spend any time at their studies.
and for what reason, I don't fucking care. fuck. them.

but at the risk of repeating myself you don't do anything to change it... because you're sure as there's cold shit in a dead cat not doing here.
you're a fucking muppet. everybody here knows it and everybody here is right on the fucking button.

anybody here who engages in these little crusader rants of yours is at best amusing themselves at your expense.
how you haven't realised this, again... it just proves my point.

see this?
jesus fucking christ this sucks.jpg
this is you in a fucking nutshell.
this speaks volumes about you. I am so thankful you posted it.
it shows me that even though you're giving it your best shot you still don't have a fucking clue what you're doing.
you're just not fucking good enough, mate.
it's not my fault. it's not your government's fault. it's not society's fault.
you just haven't put in the time or effort and you think because you breathe the same air as every other twat you're automatically entitled to your share.
fuck that. you're shit and you're not getting any better. and I don't give a fuck what anyone else says. they're lying to you as not to hurt your precious feelings.

I don't want you to leave. I just want you to know that you're in over your head and you really aren't what you think you may be.
everybody doesn't get a trophy in real life, dfuckingwayne.

if I've time later I'll find a link that supports my theory, therefore making it the fucking gospel and newsworthy for this forum.

sincerely,
my pleasure,
mitch
we'll always have buffalo, sweet josh.

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cantfishforshit.
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Re: Student Loan Debt

Post by cantfishforshit. » Wed Apr 15, 2015 8:07 am

In every other consumer debt bankruptcy (a free market device) is in place. Without that mechanism there is no reason not to lend outrageous amount to 18-22 kids. Kids that have been told by everyone Theyve been in contact with that college is a must. So, congress raises the amounts that can be borrowed, schools see this and raise tuition and don't care how much they lend or to whom because there is no escape. Meanwhile Sallie Mae owns the collections agencies, along with some of our congressional reps, and they tack on a nice 25% fee. But hey, just keep doing what we are doing...pure genius.
“I am a fisherman. The work is simple, as is my life. Still, I take pride in my work because on these waters, I may think, and reason not to."

-Hindu Fisherman

"Do you remember, Odin, when in bygone days we mixed our blood together? You said you would never drink ale unless it were brought to both of us?" -Njal

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cantfishforshit.
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Re: Student Loan Debt

Post by cantfishforshit. » Wed Apr 15, 2015 8:08 am

This post was made by austrotard who is currently on your ignore list. Display this post.
POSTED Wed Apr 15, 2015 2:40 am | by austrotard
“I am a fisherman. The work is simple, as is my life. Still, I take pride in my work because on these waters, I may think, and reason not to."

-Hindu Fisherman

"Do you remember, Odin, when in bygone days we mixed our blood together? You said you would never drink ale unless it were brought to both of us?" -Njal

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cantfishforshit.
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Re: Student Loan Debt

Post by cantfishforshit. » Wed Apr 15, 2015 8:11 am

As late as the 1970s a student could work a part time job for the summer and make enough to pay tuition for the year. Now it would take a full time job and two and a half years.
“I am a fisherman. The work is simple, as is my life. Still, I take pride in my work because on these waters, I may think, and reason not to."

-Hindu Fisherman

"Do you remember, Odin, when in bygone days we mixed our blood together? You said you would never drink ale unless it were brought to both of us?" -Njal

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BigCliff
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Re: Student Loan Debt

Post by BigCliff » Wed Apr 15, 2015 8:37 am

Given all the student debt out there, I'm amazed the housing market is doing as well as it is.

A house is a reasonably safe investment, but even in boring non-coastal markets its still not guaranteed to grow in value. The total owed for student load debt is.

I can't imagine why anyone would roll the dice on a house if they're $60+k in debt and working a $30k entry level job.
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cantfishforshit.
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Re: Student Loan Debt

Post by cantfishforshit. » Sun Apr 19, 2015 5:50 pm

I think it's holding back the economy in many areas. Tuition is increasing at 2-3 times the rate of inflation...it's laughable, if it weren't so sad.
“I am a fisherman. The work is simple, as is my life. Still, I take pride in my work because on these waters, I may think, and reason not to."

-Hindu Fisherman

"Do you remember, Odin, when in bygone days we mixed our blood together? You said you would never drink ale unless it were brought to both of us?" -Njal

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Bobwhite
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Re: Student Loan Debt

Post by Bobwhite » Sun Apr 19, 2015 10:29 pm

cantfishforshit. wrote:I think it's holding back the economy in many areas. Tuition is increasing at 2-3 times the rate of inflation...it's laughable, if it weren't so sad.
It probably is...

And, it is.

And, when you agree to something important, put your signature on the bottom line... you best be careful. Read it through, and get some advice if you don't understand.

I was scared shitless when my folks co-signed on my student loan, and nothing was going to stop me from paying it back.

It was my word.

In the real world, you either keep your word... or you start making excuses.

Then... you sleep with who you are.
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befuddled
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Re: Student Loan Debt

Post by befuddled » Mon Apr 20, 2015 12:17 pm

Yes people have to be responsible for their debt, but the real root cause is the ridiculous cost of higher education. When I went to school my first semester was $800 and that was a good school. With costs at that level you could expect to get a student loan and it not cripple you.

When your 22, $10K in debt probably seems like a lot, but in the grand scheme it's pennies compared to how much more you can earn than without an education. There's a lot to be said for learning a good trade, but not everybody will have the aptitude and/or personality for that.

If my daughter went to the same school I did today the Universities own website estimates the cost to be $22K per year. That's probably equal to what I paid for all four years. And that is an "affordable" school in the NC system. So let's say we give her 50K towards an education so she doesn't have to work as much as we did to get through. She's still gonna need roughly another $50K. Except it's going to be 5 years from now so that cost is just going to go up. And for a student loan, for some reason, the rate is around 7% when every other type of debt is at close to historical lows in term of rates.

The solution is thankfully already known. Some very good professors at very prestigious institutions have banded together and started harnessing the power of the net and offering low cost and no cost education that do not require a ton a funding because they don't have bricks and mortar classrooms. Unfortunately that service is offered mostly to under resourced populations at the moment and we really need it as an option for the general population in this country.
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Da Ax
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Re: Student Loan Debt

Post by Da Ax » Mon Apr 20, 2015 5:30 pm

I hear ya Befud. I got one in now, but he got his associates at a local Community College and transferred into the bigger school. My daughter wanted more than anything to go to this private college. The cost was $52K a year. Even with all of the scholarships and money, she would still have to get loans for $15K per year.

We sat her down and told her like it was: When you get out of this college, you're going to have a piece of paper, no job and approximately $60K in debt that you can't get out of. IF you default, you are basically ruined for many years. No decent house loan, high APR's on credit cards (if they'll even have you) and car loans. In 6 months after graduation, someone is going to be looking for money in the form of monthly payments. They won't care if you've gotten a job in your chosen field or are flipping burgers. And when you can't pay it, for whatever reason, they will come to look for me. I won't be happy.

I didn't go to college and have been very fortunate. Looking back on it all and experiencing this now, I question charging this money for a teenager that (usually) doesn't think past the end of their nose for a something they're not really sure they want to do. To change your mind can be financially disastrous even before they really make money. The whole system, from the word go, is flawed.
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