It’s over, there’s no bailing out of the college loan crisis, and when this bubble bursts it will have a big impact on all Americans. As of October 1, 2016, there were 44.2 million people in the United States who had student loan debt, most of these student loans have parents or grandparents as cosigners, and the situation gets worse, as the fallout rates or the rates of technical insolvency could be as high as 50%. If that doesn’t bother you, then you’re not paying attention.
There was recently an article in the Activist Post titled, “America’s Problem With Student Loans Is Much Bigger Than Anyone Realizes,” by Shaun Bradley published on February 2, 2017. The article stated the sum of all fears:
“The Department of Education recently released its findings that repayment rates on student loans have been grossly exaggerated. Data from 99.8 percent of schools across the country has been manipulated to cover up growing problems with $1.3 trillion in outstanding student loans.”
The article also noted that default rates are now 50% and huge numbers have never made a single payment, others no payments within 7 years and the default rate has gone from 38% to 50% in less than 2 years. Why? Most likely due to all the “free college for all” talk during the recent presidential election, and if you will recall both Hillary Clinton and Bernie Sanders both talked about college tuition loan forgiveness and free college for all.
Right now, bad debt stands at more than $650 billion, and the taxpayer is unaware of a good deal of that, but we’ll all feel the consequences regardless. Welcome to the power of socialism.
USA Today noted it; “About 90 percent of private student loans are co-signed by a parent, according to a 2012 report from the CFPB and Department of Education, an increase from previous years,” in an article titled; “The Perils of Co-Signing a Student Loan,” by CNBC’s Jessica Dickler, released January 16, 2016.
We all know by now that most of those who leave school with a degree will not work in the job categories of that knowledge set. It is expected that only 15% will still be working in the fields in which they have a degree and many of these jobs will not exist in the next 10 years.
What are we doing to fix the problem? Nothing seems, tuition increases continue every year and new semesters start two or three times a year, more debt, more students, more loans, more delinquencies, the bubble is on autopilot but the rubber is about to shoot up for the whole room , and unfortunately it is too late. Naturally, everyone will find someone to blame; The Obama administration, the banks, the students, the universities and of course those rich one percent. Sure, the left will blame capitalism and the right will blame the socialist – does it matter now?
Didn’t we just recover from the bubble of the mortgage crisis and the crash of 2008? What have we learned? Not much it seems. Well, well done humans, you’re caught up in your BS and echo chamber once again – I had hopes for you, but you continue to prove yourself incapable – humans? Please think about it.
(1) Article: WSJ (Wall Street Journal), “Paying Off Student Debt Far Worse Than Previously Believed – Revised Department of Education numbers show that in more than 1,000 schools, at least half of students have defaulted or failed to repay debt within 7 years,” by Andrea Fuller, January 18, 2017.
(2) Book: “Campus Politics – What Everyone Needs to Know”, by Jonathan Zimmerman, Oxford, 2016, 146 pages, ISBN: 978-0190627409.
(3) YouTube video: “Did you know”