Student Loan Debts Are Unsustainable

[CriticalThought]

thats the definition of the free market system reaching a point of equalibrium.

I'm sorry, but where did you learn that the "free market" involves the government subsidizing student loans?

 

[CriticalThought]

If that is true, then we need to concentrate on creating more jobs, and higher paying jobs. Seems to me that college isn't the problem, it's the economy.

The market responds to demand. You aren't going to "create" more jobs unless you create a demand for those jobs. Jobs are a cost. That seems to be something that people forget. Businesses have no reason to hire someone unless there is a demand for their services that is greater than the cost of hiring and training them.

 

[CriticalThought]

Since the begginning of the recession, college student enrollment has increased mostely due to a lack of jobs. It's only logical, and I have to argue that it's a good thing to have lots of people becoming educated.

If college enrolment starts to drop, then unemployment will only increase as we add substantially to the number of people seeking jobs. If colleges start reducing their spending, that will additionally add to the unemployment problem.

Are people better off sitting on the couch or getting an education?

They are better off getting skills through other means that accruing massive amounts of debt. There are more ways to get an "education" than through colleges and universities.

 

[Guy Incognito]

If that is true, then we need to concentrate on creating more jobs, and higher paying jobs. Seems to me that college isn't the problem, it's the economy.

Typical socialist thinking. Talk about putting the cart before the horse:roll:

 

[Harry Guerrilla]

I think a 1 time mass student loan forgiveness package would do wonders for our economy since that is the prime wide-spread consumer demographic. Let people not pay any loans and they will buy iPods and crap.

Let me get done with my undergrad first.
That's over $10k in free cash for me.

My current school doesn't do student loans, because the cost of attending is low.
My next school is pretty cheap, but does do the student loan thing.

 

[Fisher]

Let me get done with my undergrad first.
That's over $10k in free cash for me.

My current school doesn't do student loans, because the cost of attending is low.
My next school is pretty cheap, but does do the student loan thing.

Works for me. It'll take 2 years to take back the Senate and 2 more than that the WH, so study, study study

 

[Harry Guerrilla]

Works for me. It'll take 2 years to take back the Senate and 2 more than that the WH, so study, study study

Awesome.
The cool thing about subsidized student loans, is that you can take them whether or not you need them.
The taxpayer, unfortunately, covers the interest.

If you play it smart though, you can earn interest on the loan money, rather than pay interest.

 

[Fisher]

Awesome.
The cool thing about subsidized student loans, is that you can take them whether or not you need them.
The taxpayer, unfortunately, covers the interest.

If you play it smart though, you can earn interest on the loan money, rather than pay interest.

I had scholarships but I did use a low interest student loan for living expenses to re-fi my credit cards at a muuucho lower rate. Saved me a mint.

 

[imagep]

Awesome.
The cool thing about subsidized student loans, is that you can take them whether or not you need them.
The taxpayer, unfortunately, covers the interest.

If you play it smart though, you can earn interest on the loan money, rather than pay interest.

Not really. Federal student loans are now directly offered by the government. The CBO says that the taxpayer MAKES money from the student loan program. I know that Sallymae made some money off of my student loans.

 

[austrianecon]

Not really. Federal student loans are now directly offered by the government. The CBO says that the taxpayer MAKES money from the student loan program. I know that Sallymae made some money off of my student loans.

They make money off the interest. If all student loans are forgiven, no money would be made.

 

[imagep]

They make money off the interest. If all student loans are forgiven, no money would be made.

Which is why I would never promote the idea of forgiving student loans.

 

[Harry Guerrilla]

Not really. Federal student loans are now directly offered by the government. The CBO says that the taxpayer MAKES money from the student loan program. I know that Sallymae made some money off of my student loans.

Errr, I didn't say they weren't.
I was saying that I don't need them, but can take them anyway, deposit the money into savings or some kind of bond fund and make money off it.

 

[Fenton]

Or it will create lots of revenue as a byproduct
of the velocity created over 20 years of people not having to pay banks who sit on the money in favor of McDonald's and Target.

China is loving that idea. A big bump to their manufacturing base.

 

[Fisher]

China is loving that idea. A big bump to their manufacturing base.

Something we could use ourselves.

 

[Fenton]

Its an interesting subject. Notice the madsive amount of "technical schools, and "online university" commercials on the tube now ?

My oldest brought that up before he went off to the Navy and I warned him to be careful.

Some of those (most) are a huge scam leaving their students with allot of debt and little job skills.

DeVry's one. If your going to pay for an education, at least go to aa brick and mortar college.

 

[iguanaman]

Down right silly. Maybe you should read the work before actually commenting on it. Btw.. It's the top 10%, not 5% as you claim. And here's some interesting facts for you about "money". If you used 2011 dollars to buy something that cost $1 in 1972, you'd need $5.30 in 2011 dollars. So $40 trillion measured in 1972 dollars would actually be $7.52 trillion. It's called inflation. Now what do you call a period of inflation and very little growth (stagnation)? Stagflation. Welcome to the 1st world economies since the 1970s. Wanna see real growth.. go to the 2nd world and 3rd world which can actually add wealth through creation.

Reagan's budget director David Stockton is where I got those figures and No inflation does not diminish the magnitude of the increase. That skewed growth rate is truly unsustainable. This is from his 60 Minutes interview.

The highlight is listening to Republican and former Ronald Reagan budget director, David Stockman, describe the “demagoguery” of modern, tax-cut-obsessed body politic.

Stockman cites a remarkable statistic: “In 1985, the top five percent of the households – the wealthiest five percent – had net worth of $8 trillion – which is a lot. Today, after serial bubble after serial bubble, the top five per cent have net worth of $40 trillion. The top five per cent have gained more wealth than the whole human race had created prior to 1980.”