You can't squeeze blood out of a turnip.
Half of Outstanding Student Loan Debt Isn't Being Repaid - US News and World Report
Outstanding student loan debt is now the second largest form of consumer debt, but about half of the $1 trillion in student loan debt isn't being repaid because the borrowers are struggling to make payments, according to an analysis released Monday by the Consumer Financial Protection Bureau.
Using data from the Department of Education and the National Student Loan Data System, the CFPB found that as of June 2013, more than 7 million borrowers were in default on federal or private student loans, meaning they are more than 90 days late on a payment.
"Defaulting on a federal student loan has serious consequences," Rohit Chopra, the bureau's student loan ombudsman, said in the report. "Unlike other consumer credit, borrowers in default on a federal student loan might see their tax refund taken and their wages garnished without a court order."
So???
People are going into debt that they didn't need. Is anything new there?
The education they got didn't help them. Shown by the fact they can't pay the cost of it back. They got tricked by the Education Department, Teachers, Parents, etc. to go into debt that they didn't need and couldn't pay back. It's a business risk. On both sides. You take money you can never pay back there are consequences. If you loan money to people who are never going to pay it back there are consequences also.
And what else do you expect them to do? Take a low paying job out of high school and hope they'll be able to work their way up the ranks? Students are forced to choose between near inescapable (the large scale trends in American economics are mostly to blame for that) hyper-exploitation and poverty wages, and crippling debt. That's not a choice people should have to make.
I don't expect them to do anything. It's a choice up to them. If they want to take the collage route and try and make money that way, go for it. If they want to work "some lowpaying job" and work up the ranks. Go for that. People have been known to "make it" both ways. If they want to try the next to impossable and start a business great. But its not a sure thing. Nothing is.
Unless your lucky enough to have excellent network of connections with wealthy family/friends you will have to work hard. Collage is a helping step not a golden ladder.
If you want to join the Military and get them to pay for collage excellent. If you have a grant from the goverment or other Charity that help with collage great. If you can pay your way excellent. But if you borrow money you owe money.
I agree that collage is way to expensive and is ripping some people off.
And the Banks on the other side want to get people into a case were they can charge intrerest, BUT they also don't want a default. (can't get blood from a turnip)
So they have the Goverement back the loans. And the goverement is unforgiving and will take money from taxes and such to get the loan money back becuse they don't want a loss of the money either.
I don't expect them to do anything. It's a choice up to them. If they want to take the collage route and try and make money that way, go for it. If they want to work "some lowpaying job" and work up the ranks. Go for that. People have been known to "make it" both ways. If they want to try the next to impossable and start a business great. But its not a sure thing. Nothing is.
Unless your lucky enough to have excellent network of connections with wealthy family/friends you will have to work hard. Collage is a helping step not a golden ladder.
If you want to join the Military and get them to pay for collage excellent. If you have a grant from the goverment or other Charity that help with collage great. If you can pay your way excellent. But if you borrow money you owe money.
I agree that collage is way to expensive and is ripping some people off.
And the Banks on the other side want to get people into a case were they can charge intrerest, BUT they also don't want a default. (can't get blood from a turnip)
So they have the Goverement back the loans. And the goverement is unforgiving and will take money from taxes and such to get the loan money back becuse they don't want a loss of the money either.
You can't squeeze blood out of a turnip.
Half of Outstanding Student Loan Debt Isn't Being Repaid - US News and World Report
Outstanding student loan debt is now the second largest form of consumer debt, but about half of the $1 trillion in student loan debt isn't being repaid because the borrowers are struggling to make payments, according to an analysis released Monday by the Consumer Financial Protection Bureau.
Using data from the Department of Education and the National Student Loan Data System, the CFPB found that as of June 2013, more than 7 million borrowers were in default on federal or private student loans, meaning they are more than 90 days late on a payment.
"Defaulting on a federal student loan has serious consequences," Rohit Chopra, the bureau's student loan ombudsman, said in the report. "Unlike other consumer credit, borrowers in default on a federal student loan might see their tax refund taken and their wages garnished without a court order."
I'd have to agree with CriticalThought. Job prospects are far lower for non-college grads. So many folk just take a gamble - a shot at the career you want, with debt funding it. It is a choice, but it's like choosing between a week in the desert, and a week at sea. There's a way out, and you get to choose, but it's insane to be put in that situation.
But we do, as you know, have the resources to address the problem. We could simply nationalize/universalize education, or even just provide government relief of debt. It may take Big Gobblement LLC () to do it, but let's face it, the market has failed to deal with this problem.
What do you think people will learn at government run universities?
Just check out the illiteracy rate among high school graduates in most big cities.
The degree wouldn't be worth the paper it was printed on.
Can you provide anything to back up the claim that government run institutions are incapable of providing a quality education?
I'd personally cite Cuba which has a higher education system standing far above that of the United States.
So???
People are going into debt that they didn't need. Is anything new there?
The education they got didn't help them. Shown by the fact they can't pay the cost of it back. They got tricked by the Education Department, Teachers, Parents, etc. to go into debt that they didn't need and couldn't pay back. It's a business risk. On both sides. You take money you can never pay back there are consequences. If you loan money to people who are never going to pay it back there are consequences also.
And what else do you expect them to do? Take a low paying job out of high school and hope they'll be able to work their way up the ranks? Students are forced to choose between near inescapable (the large scale trends in American economics are mostly to blame for that) hyper-exploitation and poverty wages, and crippling debt. That's not a choice people should have to make.
I don't expect them to do anything. It's a choice up to them. If they want to take the collage route and try and make money that way, go for it. If they want to work "some lowpaying job" and work up the ranks. Go for that. People have been known to "make it" both ways. If they want to try the next to impossable and start a business great. But its not a sure thing. Nothing is.
Unless your lucky enough to have excellent network of connections with wealthy family/friends you will have to work hard. Collage is a helping step not a golden ladder.
If you want to join the Military and get them to pay for collage excellent. If you have a grant from the goverment or other Charity that help with collage great. If you can pay your way excellent. But if you borrow money you owe money.
I agree that collage is way to expensive and is ripping some people off.
And the Banks on the other side want to get people into a case were they can charge intrerest, BUT they also don't want a default. (can't get blood from a turnip)
So they have the Goverement back the loans. And the goverement is unforgiving and will take money from taxes and such to get the loan money back becuse they don't want a loss of the money either.
What pisses me off is Wall Street can get bailouts but not students.
Students don't need bailouts. They need direction. They need advisors to be honest with them about their B.S. "dreams."
The problem is the colleges themselves. Colleges aren't interested in the students, as much as they are interested in the money. Think of it this way...look at what's on television. It's nothing but crap that the broadcasters know the dumb masses will watch. Colleges are starting to go down that same route. Classes designed for nothing more than to draw students into desks. Classes on "Harry Potter." Classes on "sex in cinema." Classes on "Star Wars culture." These classes aren't going to get kids a job at Starbucks....but they'll get dumb kids to enroll in those classes, because of low attention span interest.
I don't expect them to do anything. It's a choice up to them. If they want to take the collage route and try and make money that way, go for it. If they want to work "some lowpaying job" and work up the ranks. Go for that. People have been known to "make it" both ways. If they want to try the next to impossable and start a business great. But its not a sure thing. Nothing is.
Unless your lucky enough to have excellent network of connections with wealthy family/friends you will have to work hard. Collage is a helping step not a golden ladder.
If you want to join the Military and get them to pay for collage excellent. If you have a grant from the goverment or other Charity that help with collage great. If you can pay your way excellent. But if you borrow money you owe money.
I agree that collage is way to expensive and is ripping some people off.
And the Banks on the other side want to get people into a case were they can charge intrerest, BUT they also don't want a default. (can't get blood from a turnip)
So they have the Goverement back the loans. And the goverement is unforgiving and will take money from taxes and such to get the loan money back becuse they don't want a loss of the money either.
Your right.
I say cut classes that has no relevancy in job placement. Create degree programs that will give students not only life education but also a chance to attain a job after college.
Paying off a student loan is, unfortunately, about the last thing a lot of self-absorbed young people have on their list of things to do once they leave college/univeristy. New wardrobe, new car, vacations, new place to live, new furniture, yada, yada, yada, all come before paying off a student loan. Self-gratification is the primary goal of many people in this world today and responsibilities remain an afterthought until such time as the government steps in and takes back tax refunds and starts garnishing wages - then the crying begins.
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