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Started By
Message
Student loan bubble about to burst
Posted on 4/11/17 at 10:16 am
Posted on 4/11/17 at 10:16 am
And I, for one, welcome the coming collapse. Education (especially higher education) is a privilege and not a right. It's time we abolish the racket that is the Ivory Tower. And I say this as an employee of said tower.
LINK
quote:
Rapid run-ups in debt are the single biggest predictor of market trouble. So it is worth noting that over the past 10 years the amount of student loan debt in the US has grown by 170 per cent, to a whopping $1.4tn — more than car loans, or credit card debt. Indeed, as an expert at the Consumer Financial Protection Bureau recently pointed out to me, since 2008 we have basically swapped a housing debt bubble for a student loan bubble. No wonder NY Federal Reserve president Bill Dudley fretted last week that high levels of student debt and default are a “headwind to economic activity”.In America, 44m people have student debt. Eight million of those borrowers are in default. That’s a default rate which is still higher than pre-crisis levels — unlike the default rate for mortgages, credit cards or even car loans. Rising college education costs will not help shrink those numbers. While the headline consumer price index is 2.7 per cent, between 2016 and 2017 published tuition and fee prices rose by 9 per cent at four-year state institutions, and 13 per cent at posher private colleges. The student loan market is hopelessly opaque — only a quarter of students can predict their own debt load A large chunk of the hike was due to schools hiring more administrators (who “brand build” and recruit wealthy donors) and building expensive facilities designed to lure wealthier, full-fee-paying students. This not only leads to excess borrowing on the part of universities — a number of them are caught up in dicey bond deals like the sort that sunk the city of Detroit — but higher tuition for students. The average debt load individual graduates carry is up 70 per cent over the past decade, to about $34,000.
LINK
This post was edited on 4/11/17 at 10:41 am
Posted on 4/11/17 at 10:19 am to PoundFoolish
quote:
Education (especially higher education) is a privilege and not a right
Perhaps, but it doesn't help when an entire generation was told that without a degree, they would die starving and homeless. I mean, Gen X and Millennials were told that without a degree your job would be "worthless" - and at the age they would go to college, are they supposed to argue with their parents? When their work experience is all of a minimum wage job in a fast food place or retail store?
Posted on 4/11/17 at 10:20 am to PoundFoolish
Why do you hate stupid people?
Oh yeah, the Government needs to stay out of the education racket.
Oh yeah, the Government needs to stay out of the education racket.
Posted on 4/11/17 at 10:20 am to PoundFoolish
So when this crashes, I assume my college degrees will be worth more overtime, as less students will be able to borrow.
Posted on 4/11/17 at 10:21 am to PoundFoolish
quote:
The average debt load individual graduates carry is up 70 per cent over the past decade, to about $34,000.
That's it? That's all? The price of a Honda Accord? Pay your fricking debt, goddamn. (not directed specifically at OP)
Posted on 4/11/17 at 10:22 am to PoundFoolish
I would say that 95% of people I know that work in higher education are absolutely insufferable.
They will hopefully have a come to Jesus moment if like you said the Ivory Tower does come down.
They will hopefully have a come to Jesus moment if like you said the Ivory Tower does come down.
Posted on 4/11/17 at 10:24 am to PoundFoolish
Anyone got some good investment strategies for this collapse?
Posted on 4/11/17 at 10:25 am to TheXman
quote:
I would say that 95% of people I know that work in higher education are absolutely insufferable.
I work in academia, in the liberal arts. And in non-Stem social science and humanities disciplines, you are right.
quote:
They will hopefully have a come to Jesus moment if like you said the Ivory Tower does come down.
Too late. The statists have already hunkered down for the long haul.
This post was edited on 4/11/17 at 10:30 am
Posted on 4/11/17 at 10:26 am to PoundFoolish
quote:
Education (especially higher education) is a privilege and not a right.
That is so fricked. The government has an important interest in a well educated population. It is a function of providing for the General Welfare to subsidize and even require education at all levels.
Posted on 4/11/17 at 10:27 am to Aubie Spr96
I'm selfishly hoping my mountain of debt is somehow washed away in this collapse.
Posted on 4/11/17 at 10:27 am to Wtodd
quote:
the Government needs to stay out of the education racket.
Somewhat agree but not totally.
The government at the local and state level need to be involved heavily. The Federal should just put out simple guidelines, not mandatory. But the laws such as IDEA, Title IX, Brown v BOE etc need to be enforced.
Posted on 4/11/17 at 10:29 am to Jake88
quote:
That's it? That's all? The price of a Honda Accord? Pay your f*****g debt
Hard to pay off that debt for the degree in women's studies when you're working 29 hours/week at Starbucks with no health insurance.
Posted on 4/11/17 at 10:29 am to WhiskeyPapa
quote:
The government has an important interest in a well educated population. It is a function of providing for the General Welfare to subsidize and even require education at all levels.
But "education" does not mean, as I think you are implying, the wholesale subsidization of entire institutions (at all levels: students, parents, teachers, and admin).
Education essentially means accreditation nowadays. And if you are referring to lower levels of primary and secondary education, the problem is far worse.
This post was edited on 4/11/17 at 10:37 am
Posted on 4/11/17 at 10:29 am to WhiskeyPapa
quote:Without safeguards to prevent colleges and universities from overpricing services with almost no lasting benefit to either the person or society?
The government has an important interest in a well educated population. It is a function of providing for the General Welfare to subsidize and even require education at all levels.
Posted on 4/11/17 at 10:30 am to Jake88
They can't find jobs because 90% of the degrees out there are worthless.
Posted on 4/11/17 at 10:32 am to ell_13
quote:
Without safeguards to prevent colleges and universities from overpricing services with almost no lasting benefit to either the person or society?
This is the issue. We need a collapse to start trimming down bloated university budgets. Colleges are becoming resorts, not schools.
This post was edited on 4/11/17 at 10:33 am
Posted on 4/11/17 at 10:32 am to tigerfan84
quote:
They can't find jobs because 90% of the degrees out there are worthless.
Except that "worthless" would imply a net worth of 0. Most of these 90%'ers will drown in debt and its correlating entanglements for at least a decade after they earn their degree.
Posted on 4/11/17 at 10:34 am to tigerfan84
quote:this meme that all these "people with liberal arts degrees and $250k worth of student loan debt" can't get jobs because their degrees are worthless needs to die
They can't find jobs because 90% of the degrees out there are worthless.
Posted on 4/11/17 at 10:34 am to ell_13
quote:
The government has an important interest in a well educated population. It is a function of providing for the General Welfare to subsidize and even require education at all levels.
Without safeguards to prevent colleges and universities from overpricing services with almost no lasting benefit to either the person or society?
What?
Did I say anything like that? Yes of course with those safeguards.
Posted on 4/11/17 at 10:35 am to PoundFoolish
The real scam is debt for useless "degrees" from for-profit colleges and trade schools.
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