43% Of Federal Student Loans Are Not Being Repaid

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They borrow expecting to get jobs regardless of the usefulness of their degree. This is poor guidance from parents, teachers, university staff.
 
Who would have thunk giving people large sums of money to go to schools that don't teach them anything useful would be a problem. Anyway. The people not paying are smart. They'll get bailed out. The idiots paying will continue to pay. It was all taught in Victimhood 101.
 
Wow..another failed Federal Program..I'm shocked!!
shocked2.gif
 
student loans are generally not bankruptible.

The best part for lenders is that they LOVE these federally insured student loans.

for example....

A lender would typically NOT give an 18yr with no job 100k in play money
BUT
the Federal govt tells the lender that if the student doesnt pay it back, the govt WILL.

So basically when all these kids arent paying back loans the fed picks up the tab AKA the TAXPAYER....
twisted.
 
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Originally Posted By: Gasbuggy
They borrow expecting to get jobs regardless of the usefulness of their degree. This is poor guidance from parents, teachers, university staff.


Yep, it was like that in the 90's when I went. I borrowed and didn't think about what it would take to pay it back. I lucked out, got my degree, got a good job. But never once did I sit down and think about the costs involved. When my kids get to that age though we will spend quite a bit of time looking at this (if not before).
 
This entire program is stupid. No bank would loan a 17 year old 100k, 50k or even 20k with no job history or payment history. Why does our federal government do this? Any loan officer who lends that kind of money to a student fresh out of high school would be fired on the spot. So why does our federal government loan money to these people? It's an awful idea!

Education is great, but we don't need to be sending our kids to expensive private schools because "the campus looks nice" or any other [censored] reason that they use to justify wasting that kind of money. I see too many people happy to graduate, and then they are miserable for years afterword because they work their [censored] off and have give all of their money back towards their student loans. Or worse yet, they don't work or are underemployed and can't make their payments. Or the worst scenario (and I see this all too often), is people graduate and then buy a new car because "they deserve it," then get married (20k+) and buy a house and have kids, instead of getting rid of that awful student loan debt accruing fees and interest. I know people in their 50's who are still paying these things off. It's terrible.
 
I put myself though college with zero handouts.

Of course, I did it between the ages of 38-40, while also paying bills and making a mortgage payment. And since I was paying it myself, I watched every dollar of it.

And unlike others, it'll be paid off.
 
Originally Posted By: mrsilv04
I put myself though college with zero handouts.

Of course, I did it between the ages of 38-40, while also paying bills and making a mortgage payment. And since I was paying it myself, I watched every dollar of it.

And unlike others, it'll be paid off.


Uncle Dave (Ramsey) would be very proud of you! Good Job!
 
I'm not a statistic here
smile.gif


My one remaining federal loan is almost completely paid off. I went during the 2008 problems, so I had to get all private loans.
 
Just garnish their wages at 60% till they die if necessary or give the the option of military service at 20% reduced pay until the loans are paid off.
Watch how fast these friggin freeloaders come up with the cash.
 
My wife and I make less than 6 figures put together, however over the last 12 years or so we paid about 80% of our 3 children's undergrad degrees with them and grandparents paying the rest. This is at top Tier 4 year universities MSU and CMU. We are debt free including our home, my kid's are debt free. Two have earned there masters on there dime.
We do not however have a second home up north and have never purchased a brand new vehicle or go on lavish vacations. Life is all about choices. No regrets.
 
Originally Posted By: hatt
Who would have thunk giving people large sums of money to go to schools that don't teach them anything useful would be a problem. Anyway. The people not paying are smart. They'll get bailed out. The idiots paying will continue to pay. It was all taught in Victimhood 101.


Or they go to overpriced prestigous schools ( so mom, Dad, Grama can brag) and obtain a usless degree with tons of debt.

Have two neices and nephews who recently graduated last year and still have not found a job! I always ask my MIL, how is their job search coming, you were bloviating what wonderful schools they got accepted at! I tell her maybe they should ask for their money back, both owe over 140 K$ and that is with mom/pop paying some.

These schools are all crooks who overpay the administrator and professors. Granny Warren D-MA senator got over 300K$ a year to teach 1 course at Havard! What a crook!
She claimed she was part Cherokee to play the quota bill angle to get the gig and then bragged about it until the Cherokees pointed out she had no cherokee bllod LOL
 
Originally Posted By: Al
Wow..another failed Federal Program..I'm shocked!!
shocked2.gif



Yep that's exactly what it is. College was affordable until the loans started the flood of money. Big Education loves it. The government should never have been involved in the loan business. That goes for mortgages as well.
 
Personally, I'm much more interested in the educational infrastructure that's generating these kinds of college costs and debt rather than touting my ability to pull myself up by my bootstraps 35 years ago.

College is almost ten times more expensive today than when I went to college for what is basically the same education. College is still college. If you want to make it a trade school only spitting out engineers then that's up to you...but I think the bottom line is that we need to change the structure to make it both cheaper and more focused. Enhanced two year JC transfer programs, etc. I would agree that I don't think "college just to do college" at these mind effingly high costs makes sense for many.
 
Originally Posted By: bradepb
My wife and I make less than 6 figures put together, however over the last 12 years or so we paid about 80% of our 3 children's undergrad degrees with them and grandparents paying the rest. This is at top Tier 4 year universities MSU and CMU. We are debt free including our home, my kid's are debt free. Two have earned there masters on there dime.
We do not however have a second home up north and have never purchased a brand new vehicle or go on lavish vacations. Life is all about choices. No regrets.

How dare you be responsible.
 
The system is working exactly as expected. The student loan program was a great idea, an act of genius. What better way to raise tuition fees in one fell swoop with a guarantee of payment right now and diverting all the headaches and details to the financial industry to prepare for a taxpayer bailout. All the people that came up with this scheme had to do was buy a few liberal politicians and it's game on. This debt is rolling down the tracks and headed straight for that taxpayer bailout. That's called a payday. The politicians know with an absolute certainty that the taxpayers are nothing better than a slot machine that pays off every time they pull the handle. At least most of these politicians are discrete enough to only laugh at them when they are together in the company of other politicians, university administrators, lobbyists and bankers while on the golf course. The taxpayers are even paying for that too, lunch and drinks included.
 
Originally Posted By: rshaw125
Originally Posted By: Al
Wow..another failed Federal Program..I'm shocked!!
shocked2.gif



Yep that's exactly what it is. College was affordable until the loans started the flood of money. Big Education loves it. The government should never have been involved in the loan business. That goes for mortgages as well.


Exactly!

Gov picks the winners and loosers. Winners are the schools and loosers are the students who have to take the loans (not the students who get the freebies!)
 
Originally Posted By: bradepb
Life is all about choices. No regrets.


well done
thumbsup2.gif



I'm still slowly paying off my loans - they were small and very low APR, so I didn't bother to pay them off early
 
The OP article is misleading. The high loan default rate statistic pretty much ONLY refers to for-profit colleges. If you take those for-profit colleges out of the mix, the loan default rate is much lower.

If you look at the research on this, the student loan default problem is largely a problem for student who go to FOR-PROFIT colleges. The traditional public and private colleges are fine for the most part. Student loans at non-profit colleges are for the most part a very good investment (in terms of a variety of measurable personal and social outcomes).

Inside Higher Ed: "Study finds for-profit colleges drove spike in student loan defaults"
https://www.insidehighered.com/news/2015...t-loan-defaults

Sep 11, 2015 - The spike in student loan defaults over the last decade has been fueled by ... students at for-profit colleges fared the worst (47 percent defaulted ...


The Atlantic: "For-Profit Colleges Are Fueling the Student-Loan Crisis"
http://www.theatlantic.com/business/archive/2015/09/the-failure-of-for-profit-colleges/405301/
 
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