We wrote last month about the growing debt bubble associated with student loans … and we wrote this week about the soaring college tuition costs driving those loans.
Well guess what … just when you thought things couldn’t get any worse …
On July 1 – assuming the U.S. Congress doesn’t take action in the interim – seven million college students taking out Stafford loans this year will see their interest rates double to 6.8 percent.
Yikes, right? All for degrees worth less and less with each passing year …
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. Of those, roughly 11 percent are “seriously delinquent” (i.e. more than three months late).
Yet another painful indicator of America’s “New Normal …”
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20 comments
Tell the kids to set up a non-profit organization. Get elected to the Legislature. Fund the non-profit with taxpayer’s money. Pay yourself a salary from the non-profit. With the non-profit’s money(previously taxpayer’s) pay off your student loan
If you need assistance in this endeavor, you may want to call Rep. Gilda Cobb-Hunter at 803 531-1257(h) or 803 534-2448(b)
Tell the kids to set up a non-profit organization. Get elected to the Legislature. Fund the non-profit with taxpayer’s money. Pay yourself a salary from the non-profit. With the non-profit’s money(previously taxpayer’s) pay off your student loan
If you need assistance in this endeavor, you may want to call Rep. Gilda Cobb-Hunter at 803 531-1257(h) or 803 534-2448(b)
6.8% is better than one of the alternative plans that would have it put as a variable rate that could go up as high as 8.5% for undergrads and 10.5% for graduates.
Although I wouldn’t actually support it, I did have a good laugh reading Elizabeth Warren suggesting we give students loans the same interest rate we give when we lend to big banks, which is less than 1% interest.
Why not?
I would much rather give a low interest loan to a student that needs it than giving the money to a bank that then turns around and charges 5.5% more interest with that loan guaranteed by the government.
The students need the break, not the banks. they have taken enough and have proven they are not worthy of our trust.
6.8% is better than one of the alternative plans that would have it put as a variable rate that could go up as high as 8.5% for undergrads and 10.5% for graduates.
Although I wouldn’t actually support it, I did have a good laugh reading Elizabeth Warren suggesting we give students loans the same interest rate we give when we lend to big banks, which is less than 1% interest.
Why not?
I would much rather give a low interest loan to a student that needs it than giving the money to a bank that then turns around and charges 5.5% more interest with that loan guaranteed by the government.
The students need the break, not the banks. they have taken enough and have proven they are not worthy of our trust.
Not everyone needs to go to college, and those who do need to realize that a bachelors degree in General Studies isn’t going to get you much more than a minimum wage job. Besides there are other ways to pay for college, work your way through; go to a Jr. college for the first two years; GI Bill; strip clubs always need new girls; etc…
Not everyone needs to go to college, and those who do need to realize that a bachelors degree in General Studies isn’t going to get you much more than a minimum wage job. Besides there are other ways to pay for college, work your way through; go to a Jr. college for the first two years; GI Bill; strip clubs always need new girls; etc…
When I went in the mid-80’s, my student loan rates were 9%… I paid mine off by getting a degree in something that actually paid a living wage.
When I went in the mid-80’s, my student loan rates were 9%… I paid mine off by getting a degree in something that actually paid a living wage.
A. This isn’t a market so it can’t “pop.”
B. You can’t walk away from the loan and you can’t discharge it in bankruptcy so there’s little to no chance of a massive wave of defaults.
A. This isn’t a market so it can’t “pop.”
B. You can’t walk away from the loan and you can’t discharge it in bankruptcy so there’s little to no chance of a massive wave of defaults.
A simple comment….. if the middle class has been stagnant in wage growth the past 12 years why do college bills, medical bills, and the cost of goods continue to expand so quickly?
ABCT purports the flow of printed up money is not homogeneous, meaning that money flows to certain sectors first…for instance we ALL KNOW bankers(and their friends) get their hands on the newly printed money first for example, via a variety of methods.
Currently MBS’s are the big vehicle, but there are others.
Anyway, by the time the printed up money gets down you or the average person the inflation of the money supply has already driven up pricing(usually at a faster level) than any increase you MIGHT receive in pay if you are a worker bee.
The Austrians, specifically Rothbard, talk about a price disturbance in the capital versus consumer good industry…but I’m still researching EXACTLY where the proverbial line is drawn as I find the definition murky.
I believe the overall ABCT theory currently best explains money flow and bubbles via empirical proof….so even if the flow suggestions are off I’m not sure it matters much anecdotally.
A simple comment….. if the middle class has been stagnant in wage growth the past 12 years why do college bills, medical bills, and the cost of goods continue to expand so quickly?
ABCT purports the flow of printed up money is not homogeneous, meaning that money flows to certain sectors first…for instance we ALL KNOW bankers(and their friends) get their hands on the newly printed money first for example, via a variety of methods.
Currently MBS’s are the big vehicle, but there are others.
Anyway, by the time the printed up money gets down you or the average person the inflation of the money supply has already driven up pricing(usually at a faster level) than any increase you MIGHT receive in pay if you are a worker bee.
The Austrians, specifically Rothbard, talk about a price disturbance in the capital versus consumer good industry…but I’m still researching EXACTLY where the proverbial line is drawn as I find the definition murky.
I believe the overall ABCT theory currently best explains money flow and bubbles via empirical proof….so even if the flow suggestions are off I’m not sure it matters much anecdotally.
Small banks who have been forced to carry much of this freight are going to get screwed over this and the big banks are going to get off scot-free. Again.
In another 15-20 years, if government will leave industry alone, you will be able to put a learning chip in your head and gain access to any subject. The ideas of “degrees” will be worthless. Oh, the Universities and schools will fight it, but eventually, the homeschool movement will make them obsolete. If you think a PhD in English is worthless NOW, in 20 years, you might be able to get a job making toilet paper.. maybe.
I’m just saying.. learn MATH. Learn micro-electronics. Learn bio-mechanics. or learn to farm.. or act.. or sing.
DON’T WAIT AROUND FOR SOMEBODY TO SAVE YOU. THEY”RE NOT COMING.
I’m not kidding..
Small banks who have been forced to carry much of this freight are going to get screwed over this and the big banks are going to get off scot-free. Again. And the Middle class tax payer will pay. Again.
In another 15-20 years, if government will leave industry alone, you will be able to put a learning chip in your head and gain access to any subject. The ideas of “degrees” will be worthless. Oh, the Universities and schools will fight it, but eventually, the homeschool movement will make them MOSTLY obsolete. If you think a PhD in English is worthless NOW, in 20 years, you might be able to get a job making toilet paper.. maybe.
I’m just saying.. learn MATH. Learn micro-electronics. Learn bio-mechanics. or learn to farm.. or act.. or sing.
DON’T WAIT AROUND FOR SOMEBODY TO SAVE YOU. THEY”RE NOT COMING.
I’m not kidding..
It looks like institutions like The University of Phoenix, DeVry University, and A Charleston
Law School are going to say good-bye !
Just looking for any silver lining.
It looks like institutions like The University of Phoenix, DeVry University, and A Charleston
Law School are going to say good-bye !
Just looking for any silver lining.