It’s over, there is no possible way to ever salvage the college loan crisis, and when this bubble bursts it will massively affect all Americans. As of October 1, 2016, there were 44.2 million people in the US who had student loan debt, most of these student loans have parents or grandparents as signers, and the situation worsens as the consequence rates or technical default rates could be as high as 50%. If this does not concern you, then you are not paying attention.
Recently, an article appeared in the Activist Post titled: “America’s Problem With Student Loans Is Much Bigger Than Anyone Realized” by Shaun Bradley, published on February 2, 2017. The article read the sum of all fears:
“The Department of Education recently released its findings that student loan repayment rates have been grossly exaggerated. Data from 99.8% 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 50% now, and a large number have never made a single payment, others have not made payments in 7 years, and the default rate went from 38% to 50% in less than 2 years. years. Why? It’s most likely due to all the talk about “free college for all” during the recent presidential election, and if you recall, both Hillary Clinton and Bernie Sanders talked about college tuition loan forgiveness and free college for everybody.
Right now, bad debt equals more than $ 650 billion, and the taxpayer is hooked on a good chunk of that, but we’ll all feel the consequences regardless. Welcome to the power of socialism.
USA Today noted that; “Approximately 90% of private student loans are co-signed by a parent, according to a 2012 report from the CFPB and the Department of Education, representing a significant increase over previous years,” in an article titled; “The Dangers of Co-signing a Student Loan”, by CNBC’s Jessica Dickler, presented on January 16, 2016.
We all now know that the majority of those who finish school with degrees will not work in the job categories of that skill set. Only 15% are expected to continue working in the fields in which they obtained their degrees, and many of those jobs will not be available in the next 10 years.
What are we doing to fix the problem? It seems like nothing, the increases in college tuition continue every year and the new semesters start two or three times a year, more debt, more students, more loans, more defaults, the bubble is on automatic pilot but the rubber is about to splash all over the room and sadly, it’s too late. Of course, everyone will find someone to blame; The Obama administration, the banks, the students, the universities, and the wealthy one percent, of course. Sure, the left will blame capitalism and the right will blame the socialists, does it matter now?
Haven’t we just recovered from the bubble of the mortgage crisis and the crash of 2008? What did we learn? Apparently not much. Well, way to go, humans, you were once again trapped in your BS and echo chamber. I was hopeful for you, but you continue to prove incapable, humans? Please think about this.
Recommended reading:
(1) Article: WSJ (Wall Street Journal), “Student debt repayment is much worse than previously thought: Revised figures from the Department of Education show that in more than 1,000 schools, at least half of students defaulted or did not pay their debts in 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?”