Student debt bubble popping

[torchbearer]

Yes, reward the people who took out money to party and get useless degrees, and punish the people that instead entered the workforce and paid taxes.

wouldn't the people hurt by debt forgiveness be the people holding the other side of the loan?
even with federally subsidized loans... they are owned by private banks.
the tax payers are getting hosed by not eliminating all of it. tax payers are still paying the subsidized portion of the default loans. the banks are still getting their interest payments, whether the account is being paid or not.

 

[Seraphim]

Yes, this is a solid option as well. Especially if one works their way through.

OR spend the first 2 years at an inexpensive community college, get your AA and transfer it to any 4year university after you figure what you want --if necessary.

 

[specsaregood]

wouldn't the people hurt by debt forgiveness be the people holding the other side of the loan?
even with federally subsidized loans... they are owned by private banks.
the tax payers are getting hosed by not eliminating all of it. tax payers are still paying the subsidized portion of the default loans. the banks are still getting their interest payments, whether the account is being paid or not.

So, cancel the interest on those loans? That might be a fair middle ground.

 

[torchbearer]

So, cancel the interest on those loans? That might be a fair middle ground.

sure.. and get rid of the indentured servant status of those with student loans and let people just pay off what they borrow.
no one gets a free pass.

 

[awake]

A student loan debt bubble pop means a severe contraction in the Big Government education cartel. Schools closing, teachers laid off and universities looking for GM style bailouts. Individuals won't be paying their loans, and the loaners of such recklessness won't be getting their money. Paging Ben Bernanke.

 

[Seraphim]

And that cascading effect begins with defaults on student loans and an inability to further finance so much debt. That time is upon us.

A student loan debt bubble pop means a severe contraction in the Big Government education cartel. Schools closing, teachers laid off and universities looking for GM style bailouts. Individuals won't be paying their loans, and the loaners of such recklessness won't be getting their money. Paging Ben Bernanke.

 

[LibForestPaul]

So how long before I can say "hyperinflation alarmists were wrong"? Isn't that a bit like saying "you'll eventually die, I can't tell you when, but I know you will"? I can't and won't live my life in constant fear of dying tomorrow if I don't have to, so why would I with my investments?

We had a casting call in 2008, it is coming, and it is coming soon. <20 years 100%, <10 years 90% <? could not say.

 

[specsaregood]

sure.. and get rid of the indentured servant status of those with student loans and let people just pay off what they borrow.
no one gets a free pass.

That is a suggestion that I could get behind. But complete student debt giveaway? screw that.

 

[LibForestPaul]

Don't expect social security, don't expect to keep your 401k, don't expect to live better than your parents. Look to Russia, Argentina, Hungary, for the future of America. Graft, cronism, large lower class, and prepare accordingly. But don't expect Somalia or Cuba. If it goes that bad, than a 3rd world war is in order.

 

[jkr]

I just wish it was dischargeable in bankruptcy...i am fuGGed bAd- 'till i die

 

[Steven Douglas]

wouldn't the people hurt by debt forgiveness be the people holding the other side of the loan?

Since that Phony Money is already spent and being circulated in the economy, the real people being hurt most are those in the economy, the value of whose currency holdings was siphoned out of that thin-air vacuum. They aren't named as parties of interest, so they are ignored. But it ultimately comes out of their asses nonetheless, and is part of the load on the economic treadmill they are forced to walk. And a double-load is placed on that treadmill, as taxpayers that were forced to pay for debts incurred, as they now get to pay--with interest--for the privilege of having their currency debased on someone else's behalf!

Meanwhile, those paying for educations out of pocket were forced to pay more (MUCH MORE) as an army of government subsidized students with guaranteed loans showed up in force and bid the prices of education up to ungodly levels. Not their "fault", but that was very much a market-distorting fundamental.

No, everyone, not just "taxpayers", is definitely a party of interest in this. Just not on the reward side.

 

[Tod]

Ron Paul...his track record is really good on such things.

Understatement of the year.

 

[torchbearer]

Since that Phony Money is already spent and being circulated in the economy, the real people being hurt most are those in the economy, the value of whose currency holdings was siphoned out of that thin-air vacuum. They aren't named as parties of interest, so they are ignored. But it ultimately comes out of their asses nonetheless, and is part of the load on the economic treadmill they are forced to walk. And a double-load is placed on that treadmill, as taxpayers that were forced to pay for debts incurred, as they now get to pay--with interest--for the privilege of having their currency debased on someone else's behalf!

Meanwhile, those paying for educations out of pocket were forced to pay more (MUCH MORE) as an army of government subsidized students with guaranteed loans showed up in force and bid the prices of education up to ungodly levels. Not their "fault", but that was very much a market-distorting fundamental.

No, everyone, not just "taxpayers", is definitely a party of interest in this. Just not on the reward side.

then we are talking about the fault of the monetary system, that won't be fixed with anything done to student loans.
and from what i'm reading, you are just stating a butterfly effect. "the money supply change effects everyone", right?
what about leaving everything as is... doesn't it also have a huge negative effect on everyone?

 

[Jordan]

Is this good if I am about to enter college next year?

Go to the cheapest university in the top 20 (or as close as you can get to it) for your particular study. If that is not an option, go to a community college for 2 years, 4.0, then transfer to the best possible school in your state for your major. If it comes between getting a 4.0 with college debt or having anything less and graduating debt free, choose the debt option. Don't work if it'll screw up your grades.

I wouldn't sweat student loan debt too much if you do the above.

 

[torchbearer]

thinking about the federal government paying the interest on these loans... every time these deferred or default payments recapitalize the previous years interest into the principle, it increases the tax payers bill.

 

[fisharmor]

Well crap.

Here's an angle nobody writes articles about.

I work for a company that makes software for the companies that service this debt. Note that I didn't even say anything about the original creditors or the students. Nope - there are already two third parties involved, the company servicing the debt for the original creditor (usually Dept of Ed), and my employer who makes their software.
In some cases, the only thing the debt servicer company does is take DoE accounts, chop them into portfolios, and then farm those out to a third third party to collect.

Business processes are already at the point now where three other multi-thousand-employee companies who have jack shit to do with the original debt can be involved in the process and still flip a buck.

As more students default, there's more potential money. More potential money equals more work. More work means more employees, and what's that you say? Unemployment is still officially around 8%?

Now for the thing that sucks - me. I suck.
Because I'm helping these people come up with IT solutions that enable them to pick those bones. They are very competitive, and so is my employer.
We will find a way to make them successful. Not all of them, but tens of thousands of employees.

Employees with families and mortgages and soccer games to drive their kids to.
The worse the situation gets, the more entrenched the market becomes.
The more difficult it is to do something meaningful about it without a lot of people getting laid off.

 

[torchbearer]

Well crap.

Here's an angle nobody writes articles about.

I work for a company that makes software for the companies that service this debt. Note that I didn't even say anything about the original creditors or the students. Nope - there are already two third parties involved, the company servicing the debt for the original creditor (usually Dept of Ed), and my employer who makes their software.
In some cases, the only thing the debt servicer company does is take DoE accounts, chop them into portfolios, and then farm those out to a third third party to collect.

Business processes are already at the point now where three other multi-thousand-employee companies who have jack shit to do with the original debt can be involved in the process and still flip a buck.

As more students default, there's more potential money. More potential money equals more work. More work means more employees, and what's that you say? Unemployment is still officially around 8%?

Now for the thing that sucks - me. I suck.
Because I'm helping these people come up with IT solutions that enable them to pick those bones. They are very competitive, and so is my employer.
We will find a way to make them successful. Not all of them, but tens of thousands of employees.

Employees with families and mortgages and soccer games to drive their kids to.
The worse the situation gets, the more entrenched the market becomes.
The more difficult it is to do something meaningful about it without a lot of people getting laid off.

the amount of people living off the parasites isn't that huge, even when you add in all the servicers of those companies... and the servicers of those companies.
for instance, who maintains your copiers? in house? doubt it.

 

[dannno]

So I have 100k in student debt what happens to me when this so called bubble collapses? Will my interest rates go down? lol

Well crap.

Here's an angle nobody writes articles about.

I work for a company that makes software for the companies that service this debt. Note that I didn't even say anything about the original creditors or the students. Nope - there are already two third parties involved, the company servicing the debt for the original creditor (usually Dept of Ed), and my employer who makes their software.
In some cases, the only thing the debt servicer company does is take DoE accounts, chop them into portfolios, and then farm those out to a third third party to collect.

Business processes are already at the point now where three other multi-thousand-employee companies who have jack shit to do with the original debt can be involved in the process and still flip a buck.

As more students default, there's more potential money. More potential money equals more work. More work means more employees, and what's that you say? Unemployment is still officially around 8%?

Now for the thing that sucks - me. I suck.
Because I'm helping these people come up with IT solutions that enable them to pick those bones. They are very competitive, and so is my employer.
We will find a way to make them successful. Not all of them, but tens of thousands of employees.

Employees with families and mortgages and soccer games to drive their kids to.
The worse the situation gets, the more entrenched the market becomes.
The more difficult it is to do something meaningful about it without a lot of people getting laid off.

So what do you think will happen to all the students who don't repay their debt? They go to collection agencies? But you can't declare bankruptcy even when it gets to that point? What do you think is going to happen if this gets REALLY bad and everybody stops paying?

 

[heavenlyboy34]

I just wish it was dischargeable in bankruptcy...i am fuGGed bAd- 'till i die

Maybe you'll find a sucker to marry you. My mom paid off the remainder of my dad's student loans. Yep, he was still paying back loans at age ~40. After getting a double major in math and chemistry, he spent almost his entire career doing what he learned in the army-electrician stuff. (and he couldn't keep a job for several years before that...) College is SUCH a scam.

 

[Tpoints]

*shrugs* Ron Paul made a lot or predictions in the '80's that took 20-30 years to come to fruition. I heard him say that he doesn't like to predict exactly when events will happen, just that it will happen.

Ron Paul talks about hyperinflation in a manner that says he believes it is inevitable, and I'm inclined to believe him if for no other reason than his track record is really good on such things.

I consider the prediction that I will die in 50 years very accurate, but useless. So do you as a person who believes Paul's predictions bank on hyperinflation happening within 5 years or 30? Can't be both! Or are you burning a candle on 2 ends?

If we're going to call bullshit every year that global warming isn't how it's predicted and blame Al Gore for scaring people into "green" profits. How cheap does gold have to be before I can say I was scammed?