Newest Bubble: Student Loans

[Oh Shoot]

Proving that government is almost always doing badly what need not be done at all, the newest economic failure is the student loan debacle. Outstanding debt is almost a trillion smackers, and default rate is ever climbing.

And of course, the Fed has pretty much nationalized that part of the banking industry.

Talk of bailout and/or amnesty. Of course, that would be your money. And China's, of course.,

Pretty good perspective below:
[b] [size=4]Student loan bailout would consume 62% of new Obama taxes[/size][/b]

http://washingtonexaminer.com/student-loan-bailout-would-consume-62-of-new-obama-taxes/article/2514764#.UL0Td6z5Wvk

- OS

[xRUSTYx]

"But students didn't know what they were doing when they signed on the dotted line" ....

Oi Vey ...

"You take out a student loan for the thousands of dollars, your a big boy now ... suck it up and deal with it" -- Would be my response

Idiots that go to school for nothing other than the useless paper their degree is printed on amazes me. I understand going to school for a specialty area (Accounting, Law, Med, etc...) -- But going to school for sociology, philosophy, and other BS so called "Degree" programs, is just outright dumb.

I'm putting away money for my son to one day start a business. Many wealthy and hard working individuals never went to school -- Instead, they built up what they have from the ground up, and started at a young age.

[b]Our *higher education* school system teaches 3 things.[/b]
1) To work for someone else the rest of your life
2) Taking on large debt is *ok*
3) Laziness

I want NONE OF THE ABOVE for my children.

Edited December 3, 2012 by xRUSTYx

[gjohnsoniv]

There is a reason I never took out any student loans and am not currently planning on taking any.

[Guest 270win]

Fed govt messed out by backing student loans that banks loaned out, just like house mortgages. Student loans don't have any collateral, so from a business standpoint bad student loans are even worse than bad real estate loans.

[superduty]

"Idiots that go to school for nothing other than the useless paper their degree is printed on amazes me. I understand going to school for a specialty area (Accounting, Law, Med, etc...) --But going to school for sociology, philosophy, and other BS so called "Degree" programs, is just outright dumb."

Well, I guess in your eyes, my wife and I are both idiots. Big ones, apparrently, because we each have Masters degrees in a 'stupid' field like what you list.

Speak for yourself.

We're doing quite nicely, thanks.

[Lumber_Jack]

Will I get a refund on the $40k I paid to EdFinancial?

[Garufa]

[quote name='xRUSTYx' timestamp='1354569560' post='854392']
Idiots that go to school for nothing other than the useless paper their degree is printed on amazes me. I understand going to school for a specialty area (Accounting, Law, Med, etc...) -- But going to school for sociology, philosophy, and other BS so called "Degree" programs, is just outright dumb.

I'm putting away money for my son to one day start a business. Many wealthy and hard working individuals never went to school -- Instead, they built up what they have from the ground up, and started at a young age.

[b]Our *higher education* school system teaches 3 things.[/b]
1) To work for someone else the rest of your life
2) Taking on large debt is *ok*
3) Laziness

I want NONE OF THE ABOVE for my children.
[/quote]

May we assume you did not go to college?

[Erik88]

I'm paying 4x the required amount each month to get mine paid off. When I'm done I will have pride in the fact that I didn't expect tax payers to bail me out.

[xRUSTYx]

[quote name='superduty' timestamp='1354582698' post='854522']
"Idiots that go to school for nothing other than the useless paper their degree is printed on amazes me. I understand going to school for a specialty area (Accounting, Law, Med, etc...) --But going to school for sociology, philosophy, and other BS so called "Degree" programs, is just outright dumb."

Well, I guess in your eyes, my wife and I are both idiots. Big ones, apparrently, because we each have Masters degrees in a 'stupid' field like what you list.

Speak for yourself.

We're doing quite nicely, thanks.
[/quote]

You're right ... I misspoke. My intent (on words) was to the 90% of college students that go there to party and rack up debt taking useless degree programs

I apologize if I offended you

[quote name='Garufa' timestamp='1354583156' post='854531']
May we assume you did not go to college?
[/quote]

This is correct

Edited December 4, 2012 by xRUSTYx

[dats82]

I am currently a student, and will be graduating in May. I have a mountain of debt waiting on me when I am done. The government took my loans over, and I no longer have loans from private lenders. I did not ask for this, nor do I approve of it. When this occurred, my interest rate increased, and I no longer had options to choose from. Pretty crappy deal for everyone involved, except of course for the government, when I begin to repay my loans.

I will say this. If I defalt on my loans, it will be completely my choice. With my degree, I will have the option of working for a company or offering a service as a private business. If it comes to the point that government decides to limit my income, either through excessive taxes or limiting reimbursement, I will just enter private practice dealing in cash deals or bartering. My biggest expense, by far, will be my loans, which are now completely held by the government. If they decide to limit my pay, it seems perfectly reasonable for me to limit theirs. I have said for some time, the productive members of society need to just quit paying the taxes that fund stuff they do not agree with. If you are paying taxes, you are allowing them to spend it on these crappy programs. If you don't want them to spend taxes on it, quit paying taxes and limit their pay.

[Dennis1209]

I was under the assumption that if you didn't pay back a government backed student loan, they would get it back one way or another, such as; not getting any tax return money back until it was paid, a bad credit rating, etc.?

[Guest ThePunisher]

[quote name='Dennis1209' timestamp='1354589052' post='854597']
I was under the assumption that if you didn't pay back a government backed student loan, they would get it back one way or another, such as; not getting any tax return money back until it was paid, a bad credit rating, etc.?
[/quote]
Yeah, and you probably won't ever be able to buy guns and ammo legally, and you will put on the gummit s#it list.

[dats82]

[quote name='Dennis1209' timestamp='1354589052' post='854597']
I was under the assumption that if you didn't pay back a government backed student loan, they would get it back one way or another, such as; not getting any tax return money back until it was paid, a bad credit rating, etc.?
[/quote]

If it came to the point that I chose to defalt on loans, I would also choose not to pay taxes. Also, a bad credit rating doesn't amount for much if you deal in cash.

Granted this is extreme talk, but I also tend to believe that extreme times maybe soon upon us.

[superduty]

[quote name='xRUSTYx' timestamp='1354587778' post='854586']
You're right ... I misspoke. My intent (on words) was to the 90% of college students that go there to party and rack up debt taking useless degree programs

I apologize if I offended you



This is correct
[/quote]


No sweat Rusty. Just making a counterpoint to your point.

Here's the way I see higher education- and this pertains to both the loan issue as the point of the original poster, as well as my sidebar-

Education is what you make of it. I think we can probably agree that there are many graduates of Harvard or Yale who got through on Daddy's purse strings, and who are total meatheads. Capitol Hill is evidence of that, regardless of which side of the aisle one sits.

The same can be said of kids who go to any other college who party their way through, only to get a degree and then wait for their handout- which may never come, because they didn't actually bother to learn anything.

For those, maybe you are right- maybe another direction is better. Lots of skilled trades/vocations I'd be happy to learn as well.

On the other hand, there are people who go to school and really understand the ramifications of the education they are getting- regardless of their field of study (It took me a while to get over the 'having fun' and get to the 'learning', I confess). Some people are OK with assuming the student loan debt, because most are hard pressed to pay for college up front, but also because they are learning something that 1) they care about, or 2) they imagine will provide for them in the future.

Again, you get out of it what you put into it.

Back to the OP, student loan rates - and college tuitions- are next to criminal at this point. Fewer and fewer of our nations youth will be able to afford higher education, which will in turn widen the gap between the US and countries like China, Korea, Japan, etc.

Edited December 4, 2012 by superduty