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Started By
Message
Student Loan Default Rates Rising 6th Straight Year
Posted on 10/9/13 at 11:21 am
Posted on 10/9/13 at 11:21 am
LINK
I have a question though, because part of the article stuck out to me, as a forward thinker.
Wouldn't this be an ideal scenario for someone who is young and in default? Am I understanding this right, that the government is taking from future Social Security benefits? Benefits this individual is likely not to see any ways, so isn't this actually a positive development (in some regards) to the borrower?
Or are there 25 year old social security drawers out there? I don't have much experience with the entitlement scheme.
I have a question though, because part of the article stuck out to me, as a forward thinker.
quote:
The department's rates also put numbers on the human toll. The three-year default rates indicate that 600,545 borrowers who entered repayment in 2010 defaulted before the end of 2012. That's more than half a million borrowers who are facing some of the consequences of defaulting on federal student loans, including seizure of tax refunds, garnishment of wages and the partial taking - without a court order - of Social Security payments.
Wouldn't this be an ideal scenario for someone who is young and in default? Am I understanding this right, that the government is taking from future Social Security benefits? Benefits this individual is likely not to see any ways, so isn't this actually a positive development (in some regards) to the borrower?
Or are there 25 year old social security drawers out there? I don't have much experience with the entitlement scheme.
This post was edited on 10/9/13 at 11:23 am
5
Posted on 10/9/13 at 11:22 am to Teddy Ruxpin
How would a student who is working or looking for work be eligible for social security payments?
Posted on 10/9/13 at 11:24 am to LSURussian
quote:
How would a student who is working or looking for work be eligible for social security payments?
Exactly, I'm really confused by this part of the paragraph. Hence, I thought, maybe they are taking from future payments somehow.
This post was edited on 10/9/13 at 11:25 am
Posted on 10/9/13 at 11:27 am to Teddy Ruxpin
I'm wondering if they really meant "unemployment benefits" and not social security benefits.
A disabled young person might be eligible for SS benefits but that person wouldn't be looking for work or working anyway.
A disabled young person might be eligible for SS benefits but that person wouldn't be looking for work or working anyway.
Posted on 10/9/13 at 11:27 am to Teddy Ruxpin
quote:It's going to be a long wait....
I thought, maybe they are taking from future payments somehow.
Posted on 10/9/13 at 11:29 am to LSURussian
quote:
I'm wondering if they really meant "unemployment benefits" and not social security benefits.
Maybe a typo is the simplest answer to the problem.
I still like my logic of a "strategic default" if you could manage one to get "access" to money you otherwise wouldn't ever receive 50 years from now.
quote:The basis of my logic in a nutshell
It's going to be a long wait....
This post was edited on 10/9/13 at 11:30 am
Posted on 10/9/13 at 1:31 pm to Teddy Ruxpin
I've read somewhere (maybe here) that this is the next buble to burst.
Gov.-backed loans to anyone
Anyone gets financed
Univ./Colleges want that money
Univ./Colleges accept anyone
Univ./Colleges raise prices b/c there is nothing stopping them
Anyone has huge amounts of debt he/she can't pay off b/c dropout, down labor market, art degree, etc.
Gov.-backed loans to anyone
Anyone gets financed
Univ./Colleges want that money
Univ./Colleges accept anyone
Univ./Colleges raise prices b/c there is nothing stopping them
Anyone has huge amounts of debt he/she can't pay off b/c dropout, down labor market, art degree, etc.
Posted on 10/9/13 at 2:19 pm to ell_13
Its not even debatable from my perspective
Posted on 10/10/13 at 12:40 pm to Teddy Ruxpin
quote:
25 year old social security drawers out there?
Yes, the disabled.
Posted on 10/10/13 at 1:07 pm to Radiojones
quote:
Yes, the disabled.
Not enough of them to be mentioned in an article with national implications IMO, hence the discussion of what the hell they meant.
This post was edited on 10/10/13 at 1:08 pm
Posted on 10/10/13 at 4:18 pm to Teddy Ruxpin
I wish they would allow student loan interest to be written off for people at any income level.
RIght now as a single I make more than $75k, but I cant write off the student loan interest.
RIght now as a single I make more than $75k, but I cant write off the student loan interest.
Posted on 10/10/13 at 4:28 pm to Teddy Ruxpin
quote:
Benefits this individual is likely not to see any ways
quote:
Or are there 25 year old social security drawers out there?
Disability.
Posted on 10/10/13 at 5:53 pm to SpidermanTUba
quote:
Disability.
Again, so inconsequential as to not bare mentioning.
Don't be a fricking douche and tell me what you know that the CBO doesn't? quote:
CBO now projects the Social Security Trust Fund to become insolvent by 2031 (previously 2034 in the 2012 outlook), at which point benefits will be automatically cut by nearly 25 percent. It's a concerning development; over the past few years, CBO has consistently moved up the date of insolvency. The actuarial balance has also deteriorated from 2.1 percent of payroll deficit in CBO's 2012 outlook to a 3.4 percent of payroll deficit this year. By comparison, the Social Security Trustees recently projected insolvency in 2033 and an actuarial deficit of 2.7 percent of payroll.
quote:
I wish they would allow student loan interest to be written off for people at any income level.
RIght now as a single I make more than $75k, but I cant write off the student loan interest.
Same boat here. High cash flow allows me to do things others can't, but also takes a lot of money out of me as well. My standard of living is not commensurate with my income, not even close.
This post was edited on 10/10/13 at 6:04 pm
Posted on 10/10/13 at 9:39 pm to Teddy Ruxpin
If you do not pay them, they will take your SS when you are eligible.
Posted on 10/10/13 at 9:42 pm to ell_13
You are correct. The student loan defaults will make the sub prime crisis look small time.
It could certainly push the reserves over the cliff if they are bailed out and if they are not. Someone has to pick up that tab, and it's a really big fricking tab.
It could certainly push the reserves over the cliff if they are bailed out and if they are not. Someone has to pick up that tab, and it's a really big fricking tab.
Posted on 10/10/13 at 9:54 pm to cjared036
quote:
I wish they would allow student loan interest to be written off for people at any income level. RIght now as a single I make more than $75k, but I cant write off the student loan interest.
Why don't you pay them off?
Posted on 10/10/13 at 10:29 pm to Colonel Flagg
quote:
Why don't you pay them off?
You say this without knowing what his debt load is. That number could be so large that it isn't advantageous to "pay it off."
Posted on 10/10/13 at 10:33 pm to dreaux
quote:
If you do not pay them, they will take your SS when you are eligible.
That makes sense in a vacuum but not in the context of the article, which is talking about the current debt crisis which probably doesn't include 55 year olds.
I agree though, that the amount of debt is unreal. As someone with it who has a decent job but can't pay them off, I'm aware of others similarly situated who aren't making near what I am and even more with far more useless degrees. There are a lot of defaults coming.
And if they don't default because of IBR type programs, that is a shite load of forgiven debt twenty years from now.
This post was edited on 10/10/13 at 10:35 pm
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