It’s over, there is no possible way to save the college loan crisis, and when this bubble bursts, it will greatly 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 co-signers, and it gets worse as interest rates consequences or technical default rates could be as high as 50%. If this 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 Realized” by Shaun Bradley published on February 2, 2017. The article stated the sum of all The fears:
“The Department of Education recently released its findings that student loan repayment rates have been grossly overstated. Data from 99.8% of schools across the country has been doctored to cover up growing problems with the $1.3 billions 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? Most likely because of all the talk about “free college for all” during the recent presidential election, and if you’ll remember, both Hillary Clinton and Bernie Sanders talked about college tuition loan forgiveness and free college for all.
Right now bad debt equates to more than $650 billion, and the taxpayer is in trouble for a good chunk of that, but we’ll all feel the consequences anyway. 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; that’s a significant increase from previous years,” in an article titled; “The Perils of Co-Signing a Student Loan” by CNBC’s Jessica Dickler aired January 16, 2016.
By now we all know that most of those who leave 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 earned their degrees, and many of those jobs will not exist in the next 10 years.
What are we doing to fix the problem? Nothing seems, college tuition increases continue every year, and new semesters start two or three times a year, more debt, more students, more loans, more defaults, the bubble is on autopilot but the rubber is about to splash the whole room. And unfortunately, it’s too late. Of course, everyone is going to find someone to blame; The Obama administration, the banks, the students, the universities and, of course, the rich one percent. Sure, the left will blame capitalism and the right will blame socialism, does it matter now?
Haven’t we just recovered from the mortgage crisis bubble and crash of 2008? What did we learn? Not much apparently. Well, way to go humans, you were once again trapped in your BS and echo chamber. I had hopes for you, but you keep proving yourself incapable. Humans? Please think about this.
Recommended reading:
(1) Article: WSJ (Wall Street Journal), “Student debt repayment much worse than thought: revised figures from the Department of Education show that in more than 1,000 schools, at least half of the students defaulted or did not pay the 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?”
