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Student Loan Debt Collapse
Posted on 4/4/17 at 3:09 pm
Posted on 4/4/17 at 3:09 pm
LINK
Anyone got any good ideas on how to short the next financial collapse and make some money off of it?
quote:
According to the New York Fed’s quarterly report on household debt and credit (pdf.), student loan balances increased by $31 billion last year to $1.31 trillion. That compares with credit card balances of $779 billion.
More alarming: The share of student loans more than 90 days overdue increased to 11.2% while seriously delinquent credit card debt stayed at 7.1%. Auto loan delinquency rates were at 3.8% and mortgage loans at 1.6%.
Anyone got any good ideas on how to short the next financial collapse and make some money off of it?
10
Posted on 4/4/17 at 3:12 pm to Aubie Spr96
About time the government gets out of student debt issuance.
Posted on 4/4/17 at 3:13 pm to Aubie Spr96
not good.
not good at all.
not good at all.
Posted on 4/4/17 at 3:14 pm to Aubie Spr96
quote:
Anyone got any good ideas on how to short the next financial collapse and make some money off of it?
Student loans are near impossible to get off your books. If anything, government will pick up the tab
Posted on 4/4/17 at 3:16 pm to Aubie Spr96
Some future democrat president will forgive all student debt and raise taxes a little more on the top 1% till they pay their fair share of 90% or so and all student debt will be forgiven
Posted on 4/4/17 at 3:24 pm to GenesChin
quote:
Student loans are near impossible to get off your books. If anything, government will pick up the tab
exactly. Student debt is almost impossible to discharge, these overdue loan payments will just rack up fees. Its going to be hard to have a direct play in here. You could short Sally Mae Bonds or SLM.
Or you could go after 2nd order plays. If student loans have to be repayed, it will probably impact first home purchases, durable goods and cars.
Posted on 4/4/17 at 3:48 pm to Aubie Spr96
Short the servicers and any bonds that are backed by repayments.
I think it also affects any purchases that need credit, as you can't really bankrupt the damn things yet they will continue to drag down your credit score.
I think it also affects any purchases that need credit, as you can't really bankrupt the damn things yet they will continue to drag down your credit score.
Posted on 4/4/17 at 4:51 pm to Aubie Spr96
You could short Navient maybe.
Posted on 4/9/17 at 7:27 pm to Aubie Spr96
I didn't have to pay a dime of interest for my student loans. If you work under 30 hours/week you can defer and not be charged interest. I made sure to stay under that number until I paid it off.
Posted on 4/9/17 at 7:57 pm to JabarkusRussell
quote:
I didn't have to pay a dime of interest for my student loans. If you work under 30 hours/week you can defer and not be charged interest. I made sure to stay under that number until I paid it off.
But how did you make enough to pay it off only working 30 hours a week? Did you really have a typical amount of student loans? Average is ~$24k.
My wife was actually able to pay hers off interest free. She's a teacher and got a student loan to get her master's. I guess it wasn't really interest free but rather was interest forgiveness. It helped a lot getting a multi-hundred dollar check each year to help pay it all off. I don't think those are offered any more though.
Posted on 4/9/17 at 8:54 pm to StringedInstruments
quote:
But how did you make enough to pay it off only working 30 hours a week? Did you really have a typical amount of student loans? Average is ~$24k.
I was making $28/hour for 20 hours a week. Loan was for about $16k (Grad School).
Posted on 4/10/17 at 8:56 am to Aubie Spr96
I'm paying my 450 a month like a good pleb.
I'm still saving money and paying myself (401k , HSA) too though.
This is a generation crippling bubble that's getting larger.
Rising housing costs, student loan debt, and in general higher costs to do businesses is going to hurt the US sooner or later.
If you remove a pillar of opportunity for low income to ascend, you effectively might as well become a socialist welfare state.
I'm still saving money and paying myself (401k , HSA) too though.
This is a generation crippling bubble that's getting larger.
Rising housing costs, student loan debt, and in general higher costs to do businesses is going to hurt the US sooner or later.
If you remove a pillar of opportunity for low income to ascend, you effectively might as well become a socialist welfare state.
Posted on 4/10/17 at 9:28 am to Aubie Spr96
Fed should start letting us pay back student loans w/ pre tax dollars.
Posted on 4/10/17 at 9:29 am to Neauxla
I could get behind that 100%
Posted on 4/10/17 at 9:32 am to Neauxla
quote:
Fed should start letting us pay back student loans w/ pre tax dollars.
I wish, it'll never happen though, because it'll disproportionately help those us who already pay our loans and not do much for the baristas at SBUX who can't even afford their interest payments.
Posted on 4/10/17 at 9:34 am to southernelite
we used student loans, parent plus, to pay for two of our three children, to attend college....sure wish we would have saved for it at the outset. fortunately we no longer owe anything. our son lived like a crown prince of saudi arabia when he was in school, our fault.
Posted on 4/10/17 at 9:36 am to southernelite
quote:It still allows people to pay 20-30% more than they would have been able to previously
I wish, it'll never happen though, because it'll disproportionately help those us who already pay our loans and not do much for the baristas at SBUX who can't even afford their interest payments.
Posted on 4/10/17 at 9:52 am to Neauxla
It's also a semi-quasi tax relief for the middle class.
Less dollars Uncle Sam gets (well technically he still is my loans are DoE lol...) you get my drift!
Actually if this happened, couldn't you technically raise your withholding's up if you offset it by paying on S.Loan debt?
There has to be a break point where you can dump so much pre tax money at the Loan that it would effectively dump you into a different tax bracket and actually play to your advantage.
Instead of paying 15k in taxes, id rather pay 10k to the loan and 5k in taxes.
I'm sure if I thought about this more it could happen.
Less dollars Uncle Sam gets (well technically he still is my loans are DoE lol...) you get my drift!
Actually if this happened, couldn't you technically raise your withholding's up if you offset it by paying on S.Loan debt?
There has to be a break point where you can dump so much pre tax money at the Loan that it would effectively dump you into a different tax bracket and actually play to your advantage.
Instead of paying 15k in taxes, id rather pay 10k to the loan and 5k in taxes.
I'm sure if I thought about this more it could happen.
Posted on 4/10/17 at 9:54 am to Aubie Spr96
Student loans are dumb
Posted on 4/10/17 at 11:45 am to 50_Tiger
The government is not going to forgo the student loan interest that the debt makes. If they did that, you'd have a massive influx of people that would lay their debt and would leave a short fall in tax revenue and interest revenue.
The government would be left primarily holding loans that are already in default or close to default, only exacerbating the current "crisis".
The rate of default is concerning, but the ~$25k average still seems a little low to compare it to the housing bubble, plus a variety of other reasons.
The government would be left primarily holding loans that are already in default or close to default, only exacerbating the current "crisis".
The rate of default is concerning, but the ~$25k average still seems a little low to compare it to the housing bubble, plus a variety of other reasons.
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