There’s another debt bubble about to burst …
According to the U.S. Department of Education, eleven percent of all student loans were “seriously delinquent” during the third quarter of 2012 – nearly twice the level recorded a decade ago. For those of you keeping score at home, “seriously delinquent” means more than three months late.
As of last October, nearly 40 million Americans owed a total of $1 trillion in student loans – a testament to the rising costs of college and a weakened job market.
That bubble keeps inflating, too, as every year six out of every ten incoming college students assume debt to pay for their education – an education that’s worth less and less with each passing year.
In fact the same study found that one-third of 20-24 year olds in America are currently unemployed, which our friend Tyler Durden notes is “hardly a ringing endorsement of an economy set to transition labor tasks to the next generation.”
Do you have college loans? Are you finding it harder to pay them off in today’s “recovered” economy? Share your thoughts in our comments section below …
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50 comments
At one time I spoke with my sons about going to college. There’s still a need in the medical field I guess. Engineering and a few others. Beyond that, START YOUR OWN BUSINESS.
At one time I spoke with my sons about going to college. There’s still a need in the medical field I guess. Engineering and a few others. Beyond that, START YOUR OWN BUSINESS.
Our youngest just graduated from USC debt free. It can be done.
Mine too. It requires sacrifice, and studying for a career that exists in the 21st century.
Our youngest just graduated from USC debt free. It can be done.
Mine too. It requires sacrifice, and studying for a career that exists in the 21st century.
Minimal student loan debt as I went to a 2-year college and worked full time the whole way through. Lottery tuition funds helped too.
Not every career can be started with a 2 year degree but tech colleges really do offer good cheap education that will get you a job. Far better than getting a 4 year degree in a major that doesn’t qualify you for jack. Research your career, don’t go to college right away if you have no clue what you want to do, apply for every scholarship you can, etc. If you wait to go SAVE UP MONEY while you do.
What would make college cheaper is if public colleges were funded better (we’ve really cut funding to them here in SC), but also holding down university spending. Student loans are facilitating drawing funds from public colleges elsewhere AND spending more at the colleges at the same time. That’s why back in the day people could pay their way through college with a decent no skill job and now many can’t go without taking a loan equivalent to the cost of a luxury car or a 20% down payment on a house.
And no, college is not for everyone, doesn’t guarantee success, etc. Stop lying to kids about this. Spend more time working with them to find out what they want to do in life and help them figure out how to get there. If your kid is taking on tens of thousands in debt, the least you can do is make sure it actually buys something worthwhile for them.
What would make colleges cheaper is if we took away all public funding for them and turned them all into private institutions. If they had to prove themselves daily, like the private sector, the chaff would rapidly be left behind.
But a definite +1 to the last paragraph smirks. :)
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
That would not decrease the cost of college that would decrease the number of people going to college. Private colleges are far more expensive than publicly supported institutions.
Not for me. Private colleges are much cheaper. I don’t have to support them with TAXES!! Further neither will any other TAXPAYER!!
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
That is just you. The average cost for a private college in SC is $40k plus a year. I don’t consider that cheap.
That’s prior to the elimination of public funding. Time and time again history has shown us;
1. Remove public funding from private enterprise and the cost of doing business goes DOWN.
2. Increase the amount of public finding into any private enterprise and the cost of doing business goes UP.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
OOOOHHHH. I like that David. Change the verbiage from PUBLIC to PRIVATE after someone has replied. You’re name’s not actually Dick is it?
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
While this is very true, it is an apples/oranges comparison.
Most of the private schools in SC are very small, and have a much lower
student/faculty ratio than does the larger public schools. A large portion of
the high cost from the private schools is the small classroom, 1 on 1
“nurturing” environment that they provide. They are for the most
part good schools, but in a lot of cases it is more about being surrounded by
other students wearing seersucker shirts or carrying designer purses than it is
about getting a valuable degree.
The larger public schools student base for the most part is
there for a more cut and dry, market driven degree. This need will continue to
exist, even if you strip the public funding and public title from them. A large
number of their non-teaching activities such as scientific research are already
privately funded, and they know how to compete for these projects, yet still
manage to turn out good results. If forced to compete for their students in the
same manner, they would simply adjust.
I will only disagree that ‘…a large portion of scientific research is privately funded…’. You only need to read the news to see that this is not only not the case, the gubmint is still funding to much BS research.
http://www.cnsnews.com/news/article/feds-spend-402721-underwear-senses-cigarette-smoke
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
As a matter of fact Jan it looks like you confirm all of my thoughts including my comment on Smirks last paragraph. It kills two birds with one stone.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
Depends on the private college, some are affordable even if most cost more.
Private schools have a lot of the same worthless degrees and big spending on crap that has nothing to do with education. In fact, many public colleges follow suit with grandiose spending on frills and the like in a vain attempt to compete with it.
Part of the problem is that this is what people want, what the market demands, and what both public and private institutions want to give them as a result. College is becoming less and less about careers and education and more about comfort and pizazz and perks. I don’t think that an all-private system would solve that, possibly far from it.
The student loan system absolutely does fuel this bullshit though, but so do kids that don’t stop and think, and so do parents who do nothing to help that, or even worse, encourages it.
Hey Smirks;
I don’t disagree that private schools do the same thing as public. If that increase their costs and they still get sufficient participation to support a business, BRAVO!! Sounds great and kudo’s to them. If they do with public money (which I have no doubt that the vast majority do) then that money should be withdrawn.
I further agree with you on the student loan issue. This absolutely fuels higher prices. Admins see you are willing to nearly ‘die’ for it, an ‘arm and a leg’ if you will and so they jack up the price. I think this attitude would be greatly curtailed by all schools becoming private institutions.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
Minimal student loan debt as I went to a 2-year college and worked full time the whole way through. Lottery tuition funds helped too.
Not every career can be started with a 2 year degree but tech colleges really do offer good cheap education that will get you a job. Far better than getting a 4 year degree in a major that doesn’t qualify you for jack. Research your career, don’t go to college right away if you have no clue what you want to do, apply for every scholarship you can, etc. If you wait to go SAVE UP MONEY while you do.
What would make college cheaper is if public colleges were funded better (we’ve really cut funding to them here in SC), but also holding down university spending. Student loans are facilitating drawing funds from public colleges elsewhere AND spending more at the colleges at the same time. That’s why back in the day people could pay their way through college with a decent no skill job and now many can’t go without taking a loan equivalent to the cost of a luxury car or a 20% down payment on a house.
And no, college is not for everyone, doesn’t guarantee success, etc. Stop lying to kids about this. Spend more time working with them to find out what they want to do in life and help them figure out how to get there. If your kid is taking on tens of thousands in debt, the least you can do is make sure it actually buys something worthwhile for them.
What would make colleges cheaper is if we took away all public funding for them and turned them all into private institutions. If they had to prove themselves daily, like the private sector, the chaff would rapidly be left behind.
But a definite +1 to the last paragraph smirks. :)
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
That would not decrease the cost of college that would decrease the number of people going to college. Private colleges are far more expensive than publicly supported institutions.
Not for me. Private colleges are much cheaper. I don’t have to support them with TAXES!! Further neither will any other TAXPAYER!!
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
That is just you. The average cost for a private college in SC is $40k plus a year. I don’t consider that cheap.
That’s prior to the elimination of public funding. Time and time again history has shown us;
1. Remove public funding from private enterprise and the cost of doing business goes DOWN.
2. Increase the amount of public finding into any private enterprise and the cost of doing business goes UP.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
OOOOHHHH. I like that David. Change the verbiage from PUBLIC to PRIVATE after someone has replied. You’re name’s not actually Dick is it?
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
While this is very true, it is an apples/oranges comparison.
Most of the private schools in SC are very small, and have a much lower
student/faculty ratio than does the larger public schools. A large portion of
the high cost from the private schools is the small classroom, 1 on 1
“nurturing” environment that they provide. They are for the most
part good schools, but in a lot of cases it is more about being surrounded by
other students wearing seersucker shirts or carrying designer purses than it is
about getting a valuable degree.
The larger public schools student base for the most part is
there for a more cut and dry, market driven degree. This need will continue to
exist, even if you strip the public funding and public title from them. A large
number of their non-teaching activities such as scientific research are already
privately funded, and they know how to compete for these projects, yet still
manage to turn out good results. If forced to compete for their students in the
same manner, they would simply adjust.
I will only disagree that ‘…a large portion of scientific research is privately funded…’. You only need to read the news to see that this is not only not the case, the gubmint is still funding to much BS research.
http://www.cnsnews.com/news/article/feds-spend-402721-underwear-senses-cigarette-smoke
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
Edit>>
Holy crap. Totally missed it
https://www.fitsnews.com/2013/05/23/wire-gowdy/
Frank Pytel
As a matter of fact Jan it looks like you confirm all of my thoughts including my comment on Smirks last paragraph. It kills two birds with one stone.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
Depends on the private college, some are affordable even if most cost more.
Private schools have a lot of the same worthless degrees and big spending on crap that has nothing to do with education. In fact, many public colleges follow suit with grandiose spending on frills and the like in a vain attempt to compete with it.
Part of the problem is that this is what people want, what the market demands, and what both public and private institutions want to give them as a result. College is becoming less and less about careers and education and more about comfort and pizazz and perks. I don’t think that an all-private system would solve that, possibly far from it.
The student loan system absolutely does fuel this bullshit though, but so do kids that don’t stop and think, and so do parents who do nothing to help that, or even worse, encourages it.
Hey Smirks;
I don’t disagree that private schools do the same thing as public. If that increase their costs and they still get sufficient participation to support a business, BRAVO!! Sounds great and kudo’s to them. If they do with public money (which I have no doubt that the vast majority do) then that money should be withdrawn.
I further agree with you on the student loan issue. This absolutely fuels higher prices. Admins see you are willing to nearly ‘die’ for it, an ‘arm and a leg’ if you will and so they jack up the price. I think this attitude would be greatly curtailed by all schools becoming private institutions.
Have a Great Day!! :) There won’t be many left with the Demlicans and Republicrats in charge.
Frank Pytel
The saddest thing about our new class of debt slaves is that unlike starting a business and failing…where you can file bankruptcy, learn from your mistakes and start over- When you realize that your degree in history nets you a job at Kinko’s and that your $50K in student loan debt keeps you perpetually broke…you can’t even file bankruptcy and start over having learned a lesson. Uncle Sam says “nope”…you are now a debt slave…gotta keep those tenured professors and their administrators in the high life my friend.
Which is why you don’t get a degree in History. For the same money, one could get a degree in Accounting, Engineering, or Nursing that will actually allow the student to get a career position that will pay enough to make those student loan payments.
I don’t disagree, but the fact is there’s lots of profs in fields that don’t net graduates jobs…all supported by student loans.
Alot of the poor kids don’t have parents with enough common sense to say “Don’t go into debt for a history or english degree”, they take the loans…then they are screwed for a decade or more….
If the loans weren’t available(backed by the gov’t/taxpayer) they wouldn’t have gotten themselves in the first place.
edit: “themselves in trouble in the first place”
Those jobs aren’t paying what they used to either.
The saddest thing about our new class of debt slaves is that unlike starting a business and failing…where you can file bankruptcy, learn from your mistakes and start over- When you realize that your degree in history nets you a job at Kinko’s and that your $50K in student loan debt keeps you perpetually broke…you can’t even file bankruptcy and start over having learned a lesson. Uncle Sam says “nope”…you are now a debt slave…gotta keep those tenured professors and their administrators in the high life my friend.
Which is why you don’t get a degree in History. For the same money, one could get a degree in Accounting, Engineering, or Nursing that will actually allow the student to get a career position that will pay enough to make those student loan payments.
I don’t disagree, but the fact is there’s lots of profs in fields that don’t net graduates jobs…all supported by student loans.
Alot of the poor kids don’t have parents with enough common sense to say “Don’t go into debt for a history or english degree”, they take the loans…then they are screwed for a decade or more….
If the loans weren’t available(backed by the gov’t/taxpayer) they wouldn’t have gotten themselves in the first place.
edit: “themselves in trouble in the first place”
Those jobs aren’t paying what they used to either.
Silly people- most students who major in history do so to get into one of the two fields where you can still rake in tons of cash- politics or the law. There is no better way to get rich without really having to work than to be a lawyer or politician…
Silly people- most students who major in history do so to get into one of the two fields where you can still rake in tons of cash- politics or the law. There is no better way to get rich without really having to work than to be a lawyer or politician…
http://blogmaverick.com/2012/05/13/the-coming-meltdown-in-college-education-why-the-economy-wont-get-better-any-time-soon/
http://blogmaverick.com/2012/05/13/the-coming-meltdown-in-college-education-why-the-economy-wont-get-better-any-time-soon/
Our college system has sucked a good chunk of the surplus value out of getting a higher education. It’s more of a question of self image now: do you want to be a guy that nets $X over your lifetime after trade school or do you want to be a guy that nets $X for your lifetime after going to country club U. Of course there are pockets of surplus value to be had. Jobs with pensions I think tend to be undervalued by job seekers. Entreprenurial jobs can get a risk premium if successul. Some jobs allow the morally flexible to take advantage of others. Etc.
Our college system has sucked a good chunk of the surplus value out of getting a higher education. It’s more of a question of self image now: do you want to be a guy that nets $X over your lifetime after trade school or do you want to be a guy that nets $X for your lifetime after going to country club U. Of course there are pockets of surplus value to be had. Jobs with pensions I think tend to be undervalued by job seekers. Entreprenurial jobs can get a risk premium if successul. Some jobs allow the morally flexible to take advantage of others. Etc.
All these college kids want fluff jobs, when they really need to get a real job and do some work.
All these college kids want fluff jobs, when they really need to get a real job and do some work.