1.5 Trillion Student Debt

[Bouncer]

We now have double the amount of student debt in America then we had in 2008 during the financial crisis.

Meanwhile Harvard is buying up land with water reserves all over wine country. They've become the largest land holder in Wine country California. At the same time they teach kids that capitalism is bad. Hypocrisy anyone? Jesus.

________________________

By Alexandre Tanzi

December 17, 2018

-Bloomberg

U.S. student loan debt outstanding reached a record $1.465 trillion last month and one particular set of borrowers is having a hard time paying back their loans, according to a Bloomberg analysis of student loan securitization data. This debt is raising fiscal risks.

"Over 90% of student loans are guaranteed by the U.S. Department of Education, meaning that if a recession causes a rise in youth unemployment and triggers mass defaults, this contingent liability could prove burdensome for the U.S. government budget," said Paul Della Guardia, economist at the Institute of International Finance in emailed comments.

The record student debt level is more than double the $675 billion outstanding in June 2009 when the recession ended.

For one group of young adults that took out loans in 2012, student loan debt is a particularly stark reminder of college. Loans disbursed in 2012 have defaulted at a faster rate than any other loan cohort since the financial crisis.

https://www.bloomberg.com/news/artic...ince-recession

[A$AP]

Get a trade and go make some money

[lipripper]

Wow...if there's so much being spent on education....why does it seem like there's so many fucking dumbasses out there...????

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[Bouncer]

Wow...if there's so much being spent on education....why does it seem like there's so many fucking dumbasses out there...????

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That's not the point of the thread. Focus on the university. They are getting richer and richer and they are buying up land with water that will be more and more valuable as time goes on. Meanwhile the students are getting poorer and poorer because they no longer attend a school but rather a cash machine. There is something fundamentally wrong with this picture. There is something sinister in taking kids money, putting them in debt, while the university buys up scarce resources for the future to further profit from.

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[lipripper]

That's not the point of the thread. Focus on the university. They are getting richer and richer and they are buying up land with water that will be more and more valuable as time goes on. Meanwhile the students are getting poorer and poorer because they no longer attend a school but rather a cash machine. There is something fundamentally wrong with this picture. There is something sinister in taking kids money, putting them in debt, while the university buys up scarce resources for the future to further profit from.

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I got that..you obviously missed my sarcasm

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[Bouncer]

I got that..you obviously missed my sarcasm

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Keep pushing me bro. Quick draw McGraw they call out here in the West.

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[lipripper]

Keep pushing me bro. Quick draw McGraw they call out here in the West.

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More like droopidty dog.... Or Lassie...lol

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[redback]

Get a trade and go make some money

Yup....or do both

[Bouncer]

More than 40% of student loan borrowers are either in default, delinquency or have postponed repaying their student loans, raising fears they may never complete their payments.

https://www.marketwatch.com/video/40...ry_top_stories

[Bouncer]

Over 60, and Crushed by Student Loan Debt

Older Americans are struggling under the burden of student loans—their children’s and their own.

By AnnaMaria Andriotis - The Wall Street Journal

Feb. 2, 2019 12:00 a.m. ET

One generation of Americans owed $86 billion in student loan debt at last count. Its members are all 60 years old or more.

Many of these seniors took out loans to help pay for their children’s college tuition and are still paying them off. Others took out student loans for themselves in the wake of the last recession, as they went back to school to boost their own employment prospects.

On average, student loan borrowers in their 60s owed $33,800 in 2017, up 44% from 2010, according to data compiled for The Wall Street Journal by credit-reporting firm TransUnion. Total student loan debt rose 161% for people aged 60 and older from 2010 to 2017—the biggest increase for any age group, according to the latest data available from TransUnion.

Some are having funds garnished from their Social Security checks. The federal government, which is the largest student loan lender in the country, garnished the Social Security benefits, tax refunds or other federal payments of more than 40,000 people aged 65 and older in fiscal year 2015 because they defaulted on student or parent loan debt. That’s up 362% from a decade prior, according to the latest data from the Government Accountability Office.

At 66, Ante Grgas-Cice owes about $29,000 in student loans. His only income is a roughly $1,600 monthly Social Security check, which the federal government garnished for a period last year because he wasn’t paying his student loans.

Mr. Grgas-Cice said his decision to go back to school continues to haunt his life.

He signed up for student loans to attend the Art Institute of New York City in 2003 and 2004, after a restaurant venture failed. At the Art Institute, he studied culinary art and restaurant design and layout to upgrade his skills, he said. Subsequent restaurant ventures didn’t work and he’s currently unemployed.

Struggling to keep up with his rent and other bills, he went to Croatia for the summer to live with his elderly mother. To pay for daily expenses, he relies on financial help from family and often turns to credit cards to pay for food and other necessities. He limits his food expenses to around $7 a day.

“I put all my money to better myself,” Mr. Grgas-Cice said, adding that he was cautious in his spending. He says it’s painful to think about his current conditions.

Student debt is one of the biggest contributors to the overall increasing debt burden held by seniors. U.S. consumers who are 60 or older owed around $615 billion in credit cards, auto loans, personal loans and student loans as of 2017. That is up 84% since 2010—the biggest increase of any age group, according to the TransUnion data.

The borrowing buildup has upended the traditional arc of adult life for many Americans. Average debt levels traditionally peak for families headed by people aged 45 to 54 years old, according to the Employee Benefit Research Institute based on data from the Federal Reserve’s Survey of Consumer Finances. But between 2010 and 2017 people in their 60s, like most other age groups, accelerated their borrowing in nearly every category, according to the TransUnion data.

Seniors are finding they have to work longer, holding onto positions younger adults might otherwise receive. They’re relying on credit cards and personal loans to pay for basic expenses. People 65 and older account for a growing share of U.S. bankruptcy filers, according to the Consumer Bankruptcy Project; unlike most consumer loans, student debt is rarely dischargeable in bankruptcy.

Perhaps the most surprising element of this surge is the rapid run-up in student loans, an issue that used to be mostly concentrated among young adults. Changes made in the wake of the last recession help explain the shift.

In the years after 2008 banks and other private student lenders began tightening underwriting standards for their loans, requiring more parents to sign on to student loans along with the student borrower. Cosigning makes the parents equally responsible for paying back the loan, resulting in a lower credit score and crimping their ability to borrow if they or their child miss a payment.

Roughly 93% of all new private student loan dollars extended to undergraduate students during the current academic year also included parent or other adults’ signatures on them, up from 74% in the 2008-09 school year, according to MeasureOne. Though federal loans still account for more than 90% of outstanding student loan debt, the private market for student loans has been growing.

In recent years, private lenders including SLM Corp. , better known as Sallie Mae, and Citizens Financial Group Inc., have increased their focus on parents. They’ve rolled out student loans that are just for parents who want to pay for their kids’ college education. The loans’ main pitch includes the possibility of a lower interest rate for parents who have high credit scores than what the federal government charges on its own parent loans; it also allows parents to spare their children the burden of debt by taking it on themselves. A spokesman for Sallie Mae says that parent loans accounted for around 2% of the student loan dollars the company originated last year. A Citizens spokesman says the majority of parent loans come from the federal program.

https://www.wsj.com/articles/over-60...d=hp_lead_pos5

[Bouncer]

If people can’t afford to make their student loan payments when unemployment is at 4% then....

U.S. Student Debt in ‘Serious Delinquency’ Tops $166 Billion

https://finance.yahoo.com/news/u-stu...140103419.html

[lipripper]

Just a bunch of wanna be freeloaders...mist take the loans with knowing they won't pay it back

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[Bouncer]

Just a bunch of wanna be freeloaders...mist take the loans with knowing they won't pay it back

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Plenty of people trying to pay but get hit with massive interest payments. Very common for someone paying $500 a month and only $100 goes towards actually paying off the loan. It's not designed for people to pay off easily.

Default's caused the 2008 financial crisis and defaults will be the cause of the coming debt crisis.

It's a combo of people living beyond their means and doing things they can't afford like you said. But it's also banks all too willing to hand out loans because interest rates are so low for them.

most people don't realize it but extremely low unemployment numbers always precede a recession/depression. its a cycle that repeats itself every decade or so. the difference this time is that the fed won't have much power to fix it with interest rates already so low.


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