Can't wait for my tax dollars to help bail out these people that are too dumb to see the obvious. Luckily my student loans are paid off so I have extra money for these morans.
That is the dumbest study ever. The entire thing reeks of trying to match evidence to the claim, rather than the other way around.
"Out of every 100 kids who enter college, 40 don't graduate, and for the 60 who do, 15 are in the bottom quartile and don't make any more money than if they hadn't gone to college"...
Formal education can be a wonderful thing.
But going into debt in an attempt to obtain that wonderful thing doesn't work for everyone.
Of course, that fact doesn't prevent the government from giving loans to everyone.
Uno
Its going to crash, but not as hard as the housing market crisis... the main reason is depending on the type of student loan, it cannot be removed or eliminated through Bankruptcy and the debt stays with you for life so you cannot walk away from it. The colleges that may be closing are those pop up ones, online ones, and trade schools.
Student loans are also converted into structured investment vehicles to be sold to investors are traded like mortgage backed securities.
70%? Are you sure about that?When nearly 70% of kids between 18-26 are enrolled in college no wonder why big business is lobbying government to flood the country with illegals. "Not enough workers!" This is basically a self-inflicted wound the nation has made. Especially when most people in government have known the statistics for a long time yet still extend the credit--the majority of those enrolled will never graduate college because their academic preparation is simply not good enough, or lack the desire or talent to get a degree. Most of these guys drop out after 2 or 3 years, have a mortgage but not degree.
There's plenty of labor, it's just most of them are being driven out of the workforce because of how easy it is to get a student loan. A bubble that needs to burst like today.
When nearly 70% of kids between 18-26 are enrolled in college no wonder why big business is lobbying government to flood the country with illegals. "Not enough workers!" This is basically a self-inflicted wound the nation has made. Especially when most people in government have known the statistics for a long time yet still extend the credit--the majority of those enrolled will never graduate college because their academic preparation is simply not good enough, or lack the desire or talent to get a degree. Most of these guys drop out after 2 or 3 years, have a mortgage but not degree.
There's plenty of labor, it's just most of them are being driven out of the workforce because of how easy it is to get a student loan. A bubble that needs to burst like today.
Its going to crash, but not as hard as the housing market crisis... the main reason is depending on the type of student loan, it cannot be removed or eliminated through Bankruptcy and the debt stays with you for life so you cannot walk away from it. The colleges that may be closing are those pop up ones, online ones, and trade schools.
Student loans are also converted into structured investment vehicles to be sold to investors are traded like mortgage backed securities.
You couldn't be more wrong - it will be a lot harder than the housing market crash. Because there are no equities in student loans, and even it cannot be eliminated through Bankruptcy, it doesn't matter because they can't pay back if they don't have jobs because they got a stupid ass degree that doesn't do jack shit in helping them get a job but it was easy and it made them feel good about the environmental studies and save the dolphins.
We all know how well the mortgage backed securities turned out, now let's imagine something as stupid, but with no equities backing up your investments. LOL. Have fun.
makes me sick that people care so much about what other people want to do with their lives.
Do too many people without the talent and perseverence get art degrees? Yes
I got degrees in music and italian literature and I worked as a professional musician for almost 20 years.
The problems lie in acceptance process. In the old days really good art and music schools only accepted the best and those they thought they could teach or mold. Now admissions will take ANYONE who can pay.
My music school accepted 4 people the year I was accepted.
Now back to your rage filled programming.
Only if the Taxpayer backing is pulled away. As long as 6% risk free loans can be handed like Candy to students.
I dont see that happening, because how is college supposed to be affordable if you cant take a 1 million dollar 6% loan?
You couldn't be more wrong - it will be a lot harder than the housing market crash. Because there are no equities in student loans, and even it cannot be eliminated through Bankruptcy, it doesn't matter because they can't pay back if they don't have jobs because they got a stupid ass degree that doesn't do jack shit in helping them get a job but it was easy and it made them feel good about the environmental studies and save the dolphins.
We all know how well the mortgage backed securities turned out, now let's imagine something as stupid, but with no equities backing up your investments. LOL. Have fun.
Ding ding ding. We have a winner.
Banks had something to repo.
Wrong.
/facepalm. On a scale from 1 to 10 where is your stupidity at? Seriously? If your answer is "Over 9000" You are correct!
Yes, banks do repo houses. What are you smoking? Can I have some?
If there is a bubble to be made the USA will make sure to divert all power to the pumpsHopefully soon. It's ridiculous and everyone knows it, even more so than the housing bubble I think. It's completely ludicrous, everything about the current cost of degrees in the US. Other Western nations don't behave as stupidly.
/facepalm. On a scale from 1 to 10 where is your stupidity at? Seriously? If your answer is "Over 9000" You are correct!
Yes, banks do repo houses. What are you smoking? Can I have some?
Those very two things you mentioned have happened at the university that my daughter attends. The 'townhouses' cost 2.5 times the price per semester that the dorms cost. As for books, the damn 'web only' portion that comes with books kills me. You cannot get the web only portion unless you buy it from the university book store WITH the book so it pretty much locks you out from buying outside the university. My daughter's books were $1300+ last semester because of that crap!
Let's see there chucklehead. In my professional realm of responsibility I oversee about $2bn of student loan backed bonds (FFELP and Private). If one of the bonds I have recommended, or have dominion over, loses $1 of principal, I am professionally responsible. As in, there isn't a single person in my firm that is answerable for that loss other than me.
Now let me ask you, how much research have you dedicated to studying the student loan problem? How much are you paid to do that research? How much money do you have at risk, or your career at risk?
I will answer that for you. 0 hours. $0 dollars. 0 career.
I can give you a litany of reasons why this will not even be close to the mortgage crisis for the actual investments. Foremost among those is that the US Government is on the hook for about 85% of the risk. As in they either own 100% of the loans, or guarantee ~97% of the principal. Thus, unless you are a B-bond investor (Usually AA through BBB rated slug of a student loan bond, about 3% of the overall principal balance o the pool), you will not lose $1 of principal. Thus, this will *NOT* bring down a single bank. To quantify that risk, lets say $300bn of FFELP bonds exist (~100bn of privates), that means that only $9bn of bonds are even under moderate risk. But for those to be under risk 100% of *ALL* loans would have to default. Even if 50% default only $4.5bn is at risk, not including excess spread which will make up the bulk, if not all, of those defaults.
To quantify that, I think at the peak of the mortgage crisis there were somewhere north of $12 *TRILLION* of mortgages outstanding, 10x as much, and banks and investment funds had hundreds of billions, if not trillions, at default risk.
The only risk to this is the federal government and a small portion of private student loans. Even if PSLs defaulted 100% from the borrowers, over 70% have co-signers, meaning parents are also at risk. Considering the 2005 bankruptcy law (and IRS code) made student loans non-dischargable unless under extreme financial duress (I can get you the specific sections if you want), it means that *BOTH* borrower and co-signer have to declare bankruptcy under extreme financial duress to get the loans discharged. Considering most AAA PSL ABS bonds are covered by 30-40% of enhancement, it would take at least 80% of borrowers to default *AND* both signers get bankruptcy dismissal.
Even then, if non-AAA bonds got hit, only 30% of below-AAA bonds would, so maybe 30bn of principal. Still *far* smaller than mortgages.
In other words...
The dick hair that I left on the urinal this morning at work has forgotten more about finance than you'll ever know.