re: A guy goes to school just for the student loan cash

There are more than 37 million people in this country that have outstanding student loan debt.

The total is over $1 TRILLION dollars now.

$900 Billion is federal student loan debt. AND YOU CANNOT DEFAULT ON FEDERAL STUDENT LOANS. You're fricked. It will never leave you until you pay it and it grows.

$90 Billion is considered past due.

Average person owes $25,000 (the AVERAGE).

This is going to get scary.

LINK

quote:

---

Who borrows/has borrowed?
Among all 2007-08 bachelor's degree recipients:
• 66% graduated with some education debt, while 10% had borrowed $40,000 or more.
• 62% at public four-year institutions borrowed.
• 72% at private nonprofit four-year institutions borrowed.
• 96% at private for-profit institutions borrowed.

Associate’s degree and certificate recipients, 2007-08:
• 38% of associate’s degree recipients at public institutions borrowed.
• 98% of associate’s degree recipients at private for-profit institutions borrowed.
• 30% of certificate recipients at public institutions borrowed.
• 90% of certificate recipients at private for-profit institutions borrowed.

Among students who earned graduate degrees in 2007-08:
• 26% had no education debt at all.
• 14% had undergraduate debt but no graduate school debt.
• 7% had borrowed $80,000 or more for graduate school.
• 5% had borrowed between $60,000 and $79,999.
(Source: The College Board)

The majority of borrowers still paying back their loans are in their 30s or older. Of the 37 million Americans with outstanding student loan debt:
• Almost 40% of these borrowers are under the age of 30.
• Nearly 42% are between the ages of 30 and 50.
• 17% are older than 50.
• Borrowers age 30-39 carry $307 billion in student loans, followed by those under 30 at $292 billion, $154 billion in the 40-49 age group, 50-59 at $106 billion and the over 60 category carrying $43 billion, for a total outstanding debt of $902 billion.

---

Unless you die.

student loans are the biggest crock of shite ever

Then the govt (public) will be stuck footing the bill.

Yeah, that's how it works in a nutshell.

The housing market is about 20x bigger. Real estate is collateral for loans but housing loans can be discharged through giving in payment of the collateral or bankruptcy.

This is a whole different beast than any housing market. You're basically creating a limited indentured servitude for most Americans to move up or maintain their class standing. Which to me is the very antithesis of America.

Im friends with a guy that did that :p

This is going to bite these people in the arse for speaking in this article. Basically, they admitted to using funds for non-education expenses. That is in direct violation of the MPN and the govt can now demand immediate full repayment for the amounts borrowed (i.e. take their tax refunds, garnish wages, no deferment, etc).

I knew a guy on a full academic scholarship who would take out student loans and invest them in federal land bank bonds. He made a few points on the spread.

quote:

---

I knew a guy on a full academic scholarship who would take out student loans and invest them in federal land bank bonds. He made a few points on the spread.

---

Know how I know you're old?

You could do that for much of 90s because the student loan rate was in the shitter (< 3% if I recall correctly). But for people my age (28), the rate was 6.8 or more, especially for graduate school. I think the lowest was 3.4% or so.