40% of college loans not being paid back!!

[skookerasbil]

Shocking Statistic: Over 40% Of Student Borrowers Don't Make Payments | Zero Hedge

Hmmm.....might make stocks jump another 3%!!!

Of course, wont raise a single eyebrow of a Bernie supporter where costs dont matter!!!

PS......what is owed is over 100 billion!!! But hey.....everything is hunkey dorey out there in Radioland!!

 

[DGS49]

Many "Bernie supporters" are supporting him precisely because they believe that if he is elected, their college loans will be forgiven.

 

[skookerasbil]

Many "Bernie supporters" are supporting him precisely because they believe that if he is elected, their college loans will be forgiven.

indeed........and talk about the classic oxymorn!! We are fast becomming a society of asshats. My kids are so screwed!!

 

[ClosedCaption]

I spoke with a guy who was convinced the next bubble to burst was the Student Loan bubble. If people just stopped paying them he said it would hurt their score for a minute but it'll hurt the banks more.

Not sure how that would work but today you post this article.

 

[DGS49]

The relevant question is, how many of these loans are not being paid according to their terms. If someone is not paying and is not required to pay at this time, that's not much of a problem.

But the consequences of not paying are quite severe, and intentionally so. You are looking at a bad credit rating, difficulty getting a mortgage, the possibility of wage garnishment, and, obviously, having a huge financial burden hanging over your head as long as it remains unpaid.

It is entirely appropriate that student loan debt not be dischargeable in bankruptcy. Allowing this would invite scammers and ne'er-do-wells to take out loans with no intention of paying them back.

The pity of it is that the decision to take out a student loan is often made by someone with so little maturity and life-experience that they truly have no idea what they getting into. And to say that the decision was "stupid," while true, doesn't solve anything.

I hate to say, "when I was your age," but I financed my undergrad and graduate education largely by giving up three years of my life to military service, but also with:

a small scholarship,
a modest student loan,
employer contributions,
personal savings.

For all but the first year, I worked full-time while going to school full-time. I was a security guard, short-order cook, cab driver, laborer, and eventually a DoD bureaucrat. I never found that the obligations of going to school (minimum 12 credits) were overwhelming when combined with F/T employment, although the scheduling was difficult at times.

(1) Parents need to do a better job of schooling their children on financial realities;

(2) College students need to make good choices about where to go, what to major in, and how it's going to be financed;

(3) Colleges need to start eliminating campus bullshit (NCAA sports, student unions, "Studies" departments, campus police, "Diversity" offices, etc, etc, etc), and charging reasonable tuitions.

 

[Fang]

Pretty funny stuff. Little do college students realize these colleges are run like big corporations sucking you dry for every penny you have.