student loan debt = the next bubble to burst

rolltide · Feb 18, 2019

been saying this for 3 years and so far I've been proven wrong....but it's just a matter of time. This will be the spark to our next recession

if the tax-loving, freedom infringing libs really wanted to do something to help the economy they would create a wage garnishment program for student loan debt like they have for dead-beat dads. Millennial and iGen have no concept of money and personal accountability so keep sucking up these $75k+ education debt with little ability or interest in repaying it.

Delinquent student debt hits record

Student loans that are at least 90 days delinquent or in default ballooned to a record $166.4 billion in the final quarter of 2018, according to a Bloomberg analysis. That means the "seriously delinquent" debt continued to rise even as the unemployment rate fell below 4% — a sign that the robust job market hasn't generated enough wage growth for recent graduates to make payments. “If you have a choice to pay your student loan or for food or housing, which do you choose?” asked a Bloomberg Intelligence strategist.

theDonger · Feb 18, 2019

rolltide said:
been saying this for 3 years and so far I've been proven wrong....but it's just a matter of time. This will be the spark to our next recession

if the tax-loving, freedom infringing libs really wanted to do something to help the economy they would create a wage garnishment program for student loan debt like they have for dead-beat dads. Millennial and iGen have no concept of money and personal accountability so keep sucking up these $75k+ education debt with little ability or interest in repaying it.

Delinquent student debt hits record

Student loans that are at least 90 days delinquent or in default ballooned to a record $166.4 billion in the final quarter of 2018, according to a Bloomberg analysis. That means the "seriously delinquent" debt continued to rise even as the unemployment rate fell below 4% — a sign that the robust job market hasn't generated enough wage growth for recent graduates to make payments. “If you have a choice to pay your student loan or for food or housing, which do you choose?” asked a Bloomberg Intelligence strategist.

Wage garnishment?! Wow what could that possibly do to people who already have to decide between paying student loans or housing, food, etc. Can only mean GOOD THINGS for the economy I imagine.

Meanwhile universities continue to ramp up tuition prices and lenders keep lending more, without ceiling, to these college kids who have been told their entire lives that they have to go to college in order to be successful.

Wage garnishment face)(*^%

rolltide · Feb 18, 2019

theDonger said:
Wage garnishment?! Wow what could that possibly do to people who already have to decide between paying student loans or housing, food, etc. Can only mean GOOD THINGS for the economy I imagine.

Meanwhile universities continue to ramp up tuition prices and lenders keep lending more, without ceiling, to these college kids who have been told their entire lives that they have to go to college in order to be successful.

Wage garnishment face)(*^%

a libertarian like myself hates the idea but it should pass wonderfully for a big-government fella like El Donger.

oh right...you believe in free 4-year education so that I can pay for your offspring to fuck up in community college. sorry i forgot about how much libs hate to pay for what they've already signed up for. it's much better if the rest of america pays for it, right?

c'mon donger. nobody holds the kid or parents hand down on the table when they sign a school loan. they owe the fucking money back and they're not doing it. I agree rising tuitions suck but even worse is not paying your debts to these banks. The kids and parents are getting the education and then backing out of the loan and it will fuck our financial system

you suck fucks believe that nobody should be held accountable for their actions....govt, errr other tax payers, should always be there too bail you out

theDonger · Feb 18, 2019

rolltide said:
a libertarian like myself hates the idea but it should pass wonderfully for a big-government fella like El Donger.

oh right...you believe in free 4-year education so that I can pay for your offspring to fuck up in community college. sorry i forgot about how much libs hate to pay for what they've already signed up for. it's much better if the rest of america pays for it, right?

c'mon donger. nobody holds the kid or parents hand down on the table when they sign a school loan. they owe the fucking money back and they're not doing it. I agree rising tuitions suck but even worse is not paying your debts to these banks. The kids and parents are getting the education and then backing out of the loan and it will fuck our financial system

you suck fucks believe that nobody should be held accountable for their actions....govt, errr other tax payers, should always be there too bail you out

There are plenty of fuck-ups in high school that shouldn't get free college, I won't fight you on that. You don't just hand out free college. You incentivize it. In high school you have to get good grades, have good attendance, and do community service: Then you get 4 years of public college education assuming you maintain grades. Otherwise, if you fuck up, you gotta pay it back. Make sure there is plenty of oversight and most importantly hold the kids accountable. Costs will be (somewhat) offset by the fuckups while teaching the same fuckups a valuable economic lesson.

I'm not saying that current student-loan holders should get to 'back out' but for fuck sake let them re-fi their federally backed student loans with a reasonable interest rate. The government shouldn't be profiting off the back of these kids. And as you already stated many of those kids can't find jobs that pay well enough in order payback their loans.

rolltide · Feb 18, 2019

The Liberal Mind

I took out a 60-year high interest rate mortgage to live in a dream house I can't afford = I'm a victim

I took out a 6-year high interest rate lease on a dream car I can't afford = I'm a victim

I signed a high-rate student loan to get a Master's degree in Socialism from my dream college = I'm a victim

theDonger · Feb 18, 2019

rolltide said:
The Liberal Mind

I took out a 60-year high interest rate mortgage to live in a dream house I can't afford = I'm a victim

I took out a 6-year high interest rate lease on a dream car I can't afford = I'm a victim

I signed a high-rate student loan to get a Master's degree in Socialism from my dream college = I'm a victim

Fair enough. I won't argue that there are people who over-extend themselves for dream houses, cars, weddings, etc. Your last statement "dream college" ... MOST colleges are through-the-roof expensive though and not many options with regard to an "affordable" college. College isn't what it used to be back when you could work a part-time job somewhere to earn enough to pay for college. The idea that going to college is putting young people in debt for 10-20 years is ludicrous. I'm not saying blame is exclusive to the schools, govt, or students -- just the current system is not sustainable as exemplified in your original post.

If the federal government is going to dole out student loans, the interest rate on those should be fair -- and possibly lowered or eliminated in return for public service.

BTW you never commented on my idea for "free college" -- Curious of your take on it. I think its reasonable anyway.

roadreeler57 · Feb 18, 2019

Why do they give out loans to kids pursuing useless degrees?..... Lucky we have Trump in office or their would be no jobs to pay those loans back with either.....

Willie99 · Feb 18, 2019

roadreeler57 said:
Why do they give out loans to kids pursuing useless degrees?..... Lucky we have Trump in office or their would be no jobs to pay those loans back with either.....

A degree in Black History or Art Appreciation and they don't want to go into teaching, it's like WTF are you thinking?

I blame bad parenting for this, along with poorly run schools. A colleges goal should be to prepare people for life, not excuses

Willie99 · Feb 18, 2019

Personally, I tell everyone who wants to go into business to major in accounting.

An accounting degree prepares you for every career position in the business world, but a degree in marketing doesn't prepare you for an accounting career (not mocking marketing or any other business degree, just saying accounting degrees open more doors)

TheEnd · Feb 18, 2019

Willie99 said:
A degree in Black History or Art Appreciation and they don't want to go into teaching, it's like WTF are you thinking?

I blame bad parenting for this, along with poorly run schools. A colleges goal should be to prepare people for life, not excuses

You better get a quick Black Belt degree because The Wabash Cannonball is coming to visit you next week.

I saw an Andy Griifith show once where a guy from prison was going to visit Andy when he got out. Barney, Gomer, Otis and Floyd waited in the bushes in case Andy needed them.

Maybe you can get Woodstool, 2perdition, vitterd and Dafinch to wait in the bushes in case wab gets the upper hand on you.

roadreeler57 · Feb 19, 2019

Willie99 said:
A degree in Black History or Art Appreciation and they don't want to go into teaching, it's like WTF are you thinking?

I blame bad parenting for this, along with poorly run schools. A colleges goal should be to prepare people for life, not excuses

Whoever is financing the loans shouldnt allow it...

WoodStool · Feb 19, 2019

The End said:
You better get a quick Black Belt degree because The Wabash Cannonball is coming to visit you next week.

I saw an Andy Griifith show once where a guy from prison was going to visit Andy when he got out. Barney, Gomer, Otis and Floyd waited in the bushes in case Andy needed them.

Maybe you can get Woodstool, 2perdition, vitterd and Dafinch to wait in the bushes in case wab gets the upper hand on you.

Lmk, I should have some free time this weekend. How long can two elderly men fight for anways…? If it goes longer then 36 seconds it will have to be finished with both sitting in a chair.

rolltide · Feb 19, 2019

theDonger said:
There are plenty of fuck-ups in high school that shouldn't get free college, I won't fight you on that. You don't just hand out free college. You incentivize it. In high school you have to get good grades, have good attendance, and do community service: Then you get 4 years of public college education assuming you maintain grades. Otherwise, if you fuck up, you gotta pay it back. Make sure there is plenty of oversight and most importantly hold the kids accountable. Costs will be (somewhat) offset by the fuckups while teaching the same fuckups a valuable economic lesson.

every school has this program...it's called academic scholarship. it's nothing new. Any substantive plan must target the kids that are taking 40k/yr to attend Duquesne for a degree in Poetry then shocked when they are making $28,500 with 150k debt. The ones with great grades, community service, and fantastic SAT's are either going to a decent college for free or drastically reduced rate or they're attending a prestigious school (ivy, stan, vand, duke) that will be the catalyst to earning great $$ right out of school thus ensuring payback of their education loan. The high achiever will find their way

the issue is the kid that needs to go to dream school, can't qualify for any academic program, and ends up with a Social Work degree and $100k debt.

PatsFan1283 · Feb 19, 2019

Am I missing something in this conversation? There is wage garnishment for federal loans if the $ isn't recouped or settled in collections.

I don't know anyone that has just said screw it and not paid their student loans unless they were flat broke.

As far as what is making costs soar though...

https://www.forbes.com/sites/presto...-student-loans-drive-up-tuition/#1ade12fd52b6

The loans are too subsidized. If they weren't then a lot of the froth in higher ed (bloated admin budgets, schools looking like country clubs, useless majors, etc) would dry up.

rolltide · Feb 19, 2019

In the HR/Recruiting world for millennials and iGen the biggest hot benefit is companies that have some sort of a student loan repayment program.

I know a republican congressman (don't remember his name) is trying to write a bill that will allow employers to offer up to 5k/yr in pre-tax student loan repayments. I don't know the details, I just heard the overview. I'll see if I can find more about it

for those that don't think this will be a major issue, consider that in addition to the new $166B in default or soon-to-default loans....

there are more than 44 million borrowers who collectively owe $1.5 trillion in student loans. Student loans are now the second largest consumer debt category after mortgages. On average, graduates of the Class of 2016 owe $37,000 in student loans, and graduates of the Class of 2017 owe almost $40,000 in student loan debt.

Serbone · Feb 19, 2019

Willie99 said:
Personally, I tell everyone who wants to go into business to major in accounting.

An accounting degree prepares you for every career position in the business world, but a degree in marketing doesn't prepare you for an accounting career (not mocking marketing or any other business degree, just saying accounting degrees open more doors)

HA! Except most of finance & accounting can and will eventually be done on-line IT programming, no need for masses of bean counters in big companies, any more. Sure there will still be some, but far fewer accountants & financial managers. TurboTax.

Lawyers? Cases are on line, cross referenced, remember movies where during a trial lawyers go to the library at night and look things over? Now, IT programs can search massive data for key words in editing, discovery, etc etc. So, fewer lawyers.

Sales... all the information is on the web, specs, pricing, you name it. Sure some big deals still happen, but no need for a salesman to show you products and services and answer questions.

Teachers? Put a video on a wide screen, teach 75% of the lessons that way...

Obama was right about this subject, used the ATM example, but in a rare instance, he was correct.

The college education propaganda is a scam, getting useless degrees, going to low tier institutions that are not up to previous standards, is harmful to our economy. Kids go into debt and cannot get a decent job and refuse to get jobs that they should have been designated for because they think they have a college degree. Example, construction work that pays very well is there and nobody wants to do it.

skins85 · Feb 19, 2019

student loan debt is the next bubble and you can see it coming.
i agree with charlie kirk that college should be 3 years and not 4. there is no need for all the common classes if they are not within the field you wish to study. the only reason the first year of classes of basic core classes exist is so you are there longer and they make more money off of you. if i want to learn something and im paying for it those classes should start when i start paying. no need for me to take history and English classes that arent needed for my degree. if you want to change your major then thats your choice but if your paying for the education you should be able to take the classes that are directed towards the field you wish to major in.

my wife still has about 30k left on her loans....sucks and holds us back from a lot of other financial opportunities. just the reality though and we are paying them.

rolltide · Feb 19, 2019

Serbone said:
The college education propaganda is a scam, getting useless degrees

the problem with that blanket statement is that every single metric shows a positive correlation to level of education and annual compensation. You can even break it down further by major because some degrees truly can never be worth the debt you've incurred where others set you up to at least double the avg American wage fresh out of college.

I believe that schools should have variance in their tuition by major. If you're going to Ithaca College for Physical Therapy or you attend Duquense for Accounting then your $40k/yr is well spent because they are target schools for those majors. But for a Social Work major to pay $45k/yr to those schools is asinine when you can get that same degree at a community college or state school at 1/3 or 1/2 the cost and it's worth exactly the same in the business world.

but kids keep going to their "dream school" and their parents sign the loans because they are all so incredibly uninformed.

rolltide · Feb 19, 2019

Serbone said:
HA! Except most of finance & accounting can and will eventually be done on-line IT programming, no need for masses of bean counters in big companies, any more. Sure there will still be some, but far fewer accountants & financial managers. TurboTax.

Lawyers? Cases are on line, cross referenced, remember movies where during a trial lawyers go to the library at night and look things over? Now, IT programs can search massive data for key words in editing, discovery, etc etc. So, fewer lawyers.

sweet rhetoric, just not true

lawyer jobs projected to rise 9% next 10 years, accountants 10%. what you're pointing to is the research and eDiscovery part of law which is representative of the -19% legal secretary projection over the next decade. but lots of runway left for accountants and lawyers to get jobs

the most jobs expected are for Apps Developers which is around 250k new jobs in the next decade, a 30% increase over today's number

Knightrofins · Feb 19, 2019

Willie99 said:
Personally, I tell everyone who wants to go into business to major in accounting.

An accounting degree prepares you for every career position in the business world, but a degree in marketing doesn't prepare you for an accounting career (not mocking marketing or any other business degree, just saying accounting degrees open more doors)

A marketing degree is mainly for people who want to 1) major in business and 2) go into sales.

However i know people with marketing (business) degrees who became CPA's

student loan debt = the next bubble to burst

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