re: Student loan debt: Could we be headed toward another economic crisis similar to 08?

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Lots of jobs out there...

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Are those jobs paying enough to allow people to pay back their loans and still be able to survive? Yeah they can get a minimum wage job but that isn't enough to live on even without student loan payments.

Why do we never talk about the fact that the majority of Universities are State schools and yet our elected officials keep letting the schools raise rates 13% or more per year? The State, i.e. us the voters, could put a stop to the rate rises and apply the breaks to this ever increasing debt spiral.

The process to get them could be more stringent. Just bought a house and had to submit so much supporting documentation and get my credit score checked a thousand times to get approved for a moderately sized housing loan.

I applied for a student loan once and ended up not using it and paid cash for the semester, but to get approved you only have to submit a FAFSA which is mostly comprised of a tax return. No credit check, no proof of assets, and tada you have a loan.

TruTV has solved the student loan crisis

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Just so you know the government sells these loans so they have whatever money they plan to recoop as soon as they sell it.

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The government is the lender (since Obama consolidated all federal loans onto the federal government's balance sheet) and only hires servicing companies to collect the debt.

Your student loan is not like some car loan (because even the worst car loan has some kind of underwriting involved!)

Unless you have a private loan (which generally don't exist since 2008) your loan was funded by the US Treasury despite being serviced by a third party. They will collect the debt from any future tax refunds, government benefits and your estate if you fall behind.

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I dont believe you.

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100% of per diem goes to it / I had a decent major.

A school in my area recently tweeted that they were in 1st place for some contest to have the highest percentage of students to have applied for Federal Financial Aid. So now it’s a contest to get students applying for the federal loans. Why would the universities lower fees?

A better solution would be for the university to hold the student loan debt, because they'd have a vested interest in underwriting their students' potential and share in their future prosperity. The school could then package the loans and sell them to the debt market to fund their operations based on students' majors and GPAs, similar to what is done with most conventional mortgages.

The rates would vary accordingly to earning potential. Engineering and business ~5%, liberal arts 15%, art history 20%, women's studies 25%, etc

The current system allows the schools to enroll anyone in any major with no accountability for finishing the degree or earning potential, funded solely by the federal government.

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Try to stay on topic and don’t get off in the weeds with “muh millennials”

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All this is makes me want to do is go off topic.

So..... muh millennials.

Student loan debt is forgiven upon death, the estate or survivors are no responsible parties.