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Posted: 1/27/2015 10:02:20 PM EDT
I've been hearing a lot about it on a radio program I listen to. Is it real? If so, how bad could it be?
Link Posted: 1/27/2015 10:08:29 PM EDT
[#1]
I think this sums it up:

Link Posted: 1/27/2015 10:10:17 PM EDT
[#2]
According to the stat I read somewhere, Americans owe more in student loans than they do in credit card debt.



And unlike credit card debt, it's very difficult if not impossible to get rid of student loan debt in bankruptcy proceedings.
Link Posted: 1/27/2015 10:10:20 PM EDT
[#3]
The premise is, what happens when almost a trillion dollars in federally backed loans are defaulted on en mass?
Link Posted: 1/27/2015 10:14:21 PM EDT
[#4]
It needs to burst. The college degree has become hugely overvalued.
Link Posted: 1/27/2015 10:21:08 PM EDT
[#5]
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Quoted:
It needs to burst. The college degree has become hugely overvalued.
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Ain't that the truth!
Link Posted: 1/27/2015 10:22:12 PM EDT
[#6]
Very real, my fiancée has a mountain of student loans and she went to a mid priced private school. She works full time (entry level job) and her loans would eat almost 2/3rds of her take home pay. Thankfully I am doing well.

There are a lot of defaults coming, if I hadn't found a much better job just before her payments started, we'd be doomed.
Link Posted: 1/27/2015 10:22:28 PM EDT
[#7]
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Quoted:
It needs to burst. The college degree has become hugely overvalued.
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+1
Link Posted: 1/27/2015 10:24:02 PM EDT
[#8]
I feel for the people who are in debt up to their eyeballs on student loan debt, and due to a stagnant economy are gonna ave a tough time paying them back.
Link Posted: 1/27/2015 10:24:14 PM EDT
[#9]




Mark Cuban sums it up.
Link Posted: 1/27/2015 10:24:56 PM EDT
[#10]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
The premise is, what happens when almost a trillion dollars in federally backed loans are defaulted on en mass?
View Quote


Well the .gov will just pay them with fake money, of course.
What's another trillion anyway?

The lefties are waiting to get control of both houses + the WH again so they can do this anyway.
Link Posted: 1/27/2015 10:26:31 PM EDT
[#11]
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Quoted:
It needs to burst. The college degree has become hugely overvalued.
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Or in other words ... worthless.
Link Posted: 1/27/2015 10:28:45 PM EDT
[#12]
No debt for me.
Link Posted: 1/27/2015 10:28:51 PM EDT
[#13]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
http://youtu.be/ohLrNlY_TBk

Mark Cuban sums it up.
View Quote

Does that mean the "college" next to food city might not be here in a few years?
Link Posted: 1/27/2015 10:29:29 PM EDT
[#14]
"Hey kid, go get a college degree so you don't have to work at Mcdonalds"...
Link Posted: 1/27/2015 10:30:02 PM EDT
[#15]


Discussion ForumsJump to Quoted PostQuote History
Quoted:



It needs to burst. The Some college degrees has have become hugely overvalued.
View Quote



Fixt.





If you get a STEM BS degree from a decent university it's highly likely you will be able to earn more than enough to pay your loans back.





If you get a humanities BA degree from a private liberal arts college, enjoy your career at Starbuck's.





 
Link Posted: 1/27/2015 10:30:07 PM EDT
[#16]
Link Posted: 1/27/2015 10:30:56 PM EDT
[#17]
Link Posted: 1/27/2015 10:31:20 PM EDT
[#18]
UNLIKE THE SUBPRIME BUBBLE... THIS DEBT IS NONDISCHARGABLE

There is NO POP when the debt can NEVER be discharged by bankrupty/shortsale and there is no equivalent of foreclosure/housing price collapse, just garnishment of wages.

The only thing that pops is the gravy train for big edu when the taxpayers collectively decide to stop issuing government backed nondischargable debt, especially to the likes of ITT Tech and University of Phoenix.

Privately issued nondischargable debt will continued to be issued.

THE END.
Link Posted: 1/27/2015 10:32:24 PM EDT
[#19]
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Quoted:



Or in other words ... worthless.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.


Lol umm.....no.  

Is it ignorant as fuck to run up a 100k bill to get an anthropology degree?  Of course.

Is it equally as stupid to say something like "college degrees are worthless"?  Of course.

Link Posted: 1/27/2015 10:32:26 PM EDT
[#20]
Link Posted: 1/27/2015 10:33:00 PM EDT
[#21]
Student loans are created by underprivileged  who don't feel entitled and those not sucking a silver spoon. Tread lightly
Link Posted: 1/27/2015 10:33:27 PM EDT
[#22]
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Quoted:
People with degrees, on average, make more than those without  
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Quoted:
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.
People with degrees, on average, make more than those without  



GD is gonna come here and say that STEM degrees are worthless. lol
Link Posted: 1/27/2015 10:33:41 PM EDT
[#23]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



Or in other words ... worthless.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.

This.  Here was my theory going INTO college-

You go to college to get a good job, you get the good job so you can pay off the college.  

Now it is
You go to college in hopes of getting a good job only to find that there are none and you still owe all of that money!

My wife wants us to start a fund for our daughters collegiate future.  I am hesitant as I see and read what is going on (lack of jobs, having diploma is near worthless unless it says doctor) + the price of college very well may be 1 mil before they even get there!   We argue about this from time to time.  I usually look back at my girls and say "yall better find something you can excel at and get a scholarship in if you want to go to college".

Wife usually gives me a huge
Link Posted: 1/27/2015 10:34:33 PM EDT
[#24]
I'm a senior in high school and I think the reality of what is and isn't worth it is beginning to sink in.  Almost everyone I know is either doing engineering or economics,  very few BS majors.
Link Posted: 1/27/2015 10:34:41 PM EDT
[#25]


Link Posted: 1/27/2015 10:34:49 PM EDT
[#26]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
People with degrees, on average, make more than those without  
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.
People with degrees, on average, make more than those without  


I wonder if that is still true.  And I wonder if it is, if it would be true if you allowed for the debt load.
Link Posted: 1/27/2015 10:34:57 PM EDT
[#27]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
"Hey kid, go get a college degree so you don't have to work at Mcdonalds"...[img]http://www.ar15.com/images/smilies/smiley_thinking.gif[/img]
View Quote


Hey kid! Go to college and earn a degree in a field that needs people so you don't have to work at McDonalds! Better yet learn a skill that is in demand!
Link Posted: 1/27/2015 10:35:56 PM EDT
[#28]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

This.  Here was my theory going INTO college-

You go to college to get a good job, you get the good job so you can pay off the college.  

Now it is
You go to college in hopes of getting a good job only to find that there are none and you still owe all of that money!

My wife wants us to start a fund for our daughters collegiate future.  I am hesitant as I see and read what is going on (lack of jobs, having diploma is near worthless unless it says doctor) + the price of college very well may be 1 mil before they even get there!   We argue about this from time to time.  I usually look back at my girls and say "yall better find something you can excel at and get a scholarship in if you want to go to college".

Wife usually gives me a huge
View Quote View All Quotes
View All Quotes
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.

This.  Here was my theory going INTO college-

You go to college to get a good job, you get the good job so you can pay off the college.  

Now it is
You go to college in hopes of getting a good job only to find that there are none and you still owe all of that money!

My wife wants us to start a fund for our daughters collegiate future.  I am hesitant as I see and read what is going on (lack of jobs, having diploma is near worthless unless it says doctor) + the price of college very well may be 1 mil before they even get there!   We argue about this from time to time.  I usually look back at my girls and say "yall better find something you can excel at and get a scholarship in if you want to go to college".

Wife usually gives me a huge

Your wife's right.
Link Posted: 1/27/2015 10:36:40 PM EDT
[#29]
Discussion ForumsJump to Quoted PostQuote History
Quoted:



GD is gonna come here and say that STEM degrees are worthless. lol
View Quote View All Quotes
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.
People with degrees, on average, make more than those without  



GD is gonna come here and say that STEM degrees are worthless. lol

<GD>Harvard MBA? Psst, enjoy working at burger king.<GD>    Which translates into something like..I was too stupid or lazy to get a degree so I gotta hate to feel better about my life.
Link Posted: 1/27/2015 10:36:43 PM EDT
[#30]
Some people really suck at networking.
Link Posted: 1/27/2015 10:37:06 PM EDT
[#31]
These kids were taught that they needed a college scholarship, bachelors or masters to succeed. Trade school is for blue collar jobs. Don't knock the victims BC of what society taught them.
Link Posted: 1/27/2015 10:37:42 PM EDT
[#32]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
Still doesn't mean the bank will" get it back  
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
UNLIKE THE SUBPRIME BUBBLE... THIS DEBT IS NONDISCHARGABLE

There is NO POP when the debt can NEVER be discharged by bankrupty.

The only thing that pops is the gravy train for big edu when the taxpayers collectively decide to stop issuing government backed nondischargable debt.

Privately issued nondischargable debt will continued to be issued to idiots.

The end.
Still doesn't mean the bank will" get it back  

Well if they issued the loan to someone who used their 4 year "computers and technology" degree from DeVry to work a deep fryer, then it will take longer than expected to recover the payments by garnishment of wages... but hey... it will be an eternal revenue stream via penalties and interest. I'm pretty sure welfare and social security can be garnished for student loans as with child support, taxes, and unpaid court fines.
Link Posted: 1/27/2015 10:38:55 PM EDT
[#33]




Discussion ForumsJump to Quoted PostQuote History
Quoted:
Lol umm.....no.  
Is it ignorant as fuck to run up a 100k bill to get an anthropology degree?  Of course.
Is it equally as stupid to say something like "college degrees are worthless"?  Of course.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:




It needs to burst. The college degree has become hugely overvalued.

Or in other words ... worthless.

Lol umm.....no.  
Is it ignorant as fuck to run up a 100k bill to get an anthropology degree?  Of course.
Is it equally as stupid to say something like "college degrees are worthless"?  Of course.
Yep, you've got to be smart about it.
By the time I was done I had 10K of student loans with a masters degree in engineering. Why? because I got a shitload of scholarships.
Had I not gotten those scholarships, I was considering LEO or military. Too much financial risk for something I wasn't sure I was going to be able to do.
All LEO and military guys can be thankful that I got scholarships.
ETA::Oh, I got a job upon graduation, paid off my loans in 6 months.





I know people with tens of thousands of dollars in debt even 10 years later!  No fucking way would I have done that. Not a chance.



Also, I know someone who went to school for "Leisure Studies".



No shit. IMHO, that's worse that medieval literature.
 
Link Posted: 1/27/2015 10:40:59 PM EDT
[#34]
Quoted:
I've been hearing a lot about it on a radio program I listen to. Is it real? If so, how bad could it be?
View Quote


It's a clusterfuck.   Some similar dynamics to the subprime housing crap, smaller scale, but with much more focused negative effects.

- Public schools tell everyone they should go to college
- Government hurls money at people to go to school
- People go, borrowing money (hey why not, it's not like they have to pay for it, right?)
- Increased demand means prices skyrocket.  Colleges jack up tuition even further to sponge up all that loan money.
- University boards roll around naked in mountains of money, quite a bit of which gets back to politicians in various shady ways, including sinecure positions.

- And lastly, students graduate to find degrees largely worthless, no jobs, and a mountain of debt.

Obama added an additional step:

- Nationalize outstanding loans, rip up everyone's lending contracts, then pay crony corporations hundreds of millions to "service" them.   By "service" I mean "fuck over borrowers as hard as possible with shitty bureaucracies and active neglect in order to try and get them to default, so they can just cut to the chase and garner wages".


A lot of people need to take a moment to think about what it would be like if the feds made their mortgages exempt from bankruptcy, transferred the ownership to a shittier entity than the one that currently services it, arbitrarily threw out the contract terms, then outsourced the servicing to one of the large companies that fucked up the implementation of Obamacare.  

We told a couple of these generations their entire lives that they should go to school even if they had to borrow some to do it, then the gov't turned around and fucked them.   This is going to fuck all of us when they decide they can't afford to own a home, get married, or have kids.

I think the silver lining in all of this is going to be the collapse of many (leftist dominated) universities.
Link Posted: 1/27/2015 10:41:52 PM EDT
[#35]
Link Posted: 1/27/2015 10:42:06 PM EDT
[#36]

Discussion ForumsJump to Quoted PostQuote History
Quoted:





Fixt.



If you get a STEM BS degree from a decent university it's highly likely you will be able to pay it back.



If you get a humanities BA degree from a private liberal arts college, enjoy your career at Starbuck's.

 
View Quote View All Quotes
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Quoted:



Quoted:

It needs to burst. The Some college degrees has have become hugely overvalued.


Fixt.



If you get a STEM BS degree from a decent university it's highly likely you will be able to pay it back.



If you get a humanities BA degree from a private liberal arts college, enjoy your career at Starbuck's.

 


You're right, but I think that a humanities degree could actually be meaningful if they weren't handed out so easily. A BA used to be seen as an indication that the graduate had discipline and was well-rounded, and one could get a bachelor's without risking bankruptcy, too. Now it just means that the holder muddled through four years of watered-down classes.



 
Link Posted: 1/27/2015 10:43:03 PM EDT
[#37]
The fiancee and I owe a good bit of school loans.  It sucks to pay for these loans...but they are called loans for a GD reason!  We incurred them.  We reap the benefits from our degrees.  We pay them back.  It's a not difficult concept to understand.

When she lost her job a year ago, the school loan people worked with her so she could pay what she could afford.  They were very understanding, and now she is back to paying what she was before with her new job.  But too many lazy asshats just do not want to pay for the LOANS.
Link Posted: 1/27/2015 10:43:18 PM EDT
[#38]
I still don't get how there can be a bubble on student debt.

It's one of the few things out there that is unforgivable debt.  

You don't get to decide to walk away from it like a sub prime loan, mortgage, CC, etc.  You don't get to claim bankruptcy on it.  

They will garnish your shit for the next 50 years if they have to.  How is this not one of the safest loans a lender can make?  Where is the bubble and how does it burst?
Link Posted: 1/27/2015 10:43:31 PM EDT
[#39]
Discussion ForumsJump to Quoted PostQuote History
Quoted:

Your wife's right.
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Quoted:
It needs to burst. The college degree has become hugely overvalued.



Or in other words ... worthless.

This.  Here was my theory going INTO college-

You go to college to get a good job, you get the good job so you can pay off the college.  

Now it is
You go to college in hopes of getting a good job only to find that there are none and you still owe all of that money!

My wife wants us to start a fund for our daughters collegiate future.  I am hesitant as I see and read what is going on (lack of jobs, having diploma is near worthless unless it says doctor) + the price of college very well may be 1 mil before they even get there!   We argue about this from time to time.  I usually look back at my girls and say "yall better find something you can excel at and get a scholarship in if you want to go to college".

Wife usually gives me a huge

Your wife's right.

YOURE NOT MY SUPERVISOR!!!!
(she is!)
Link Posted: 1/27/2015 10:45:52 PM EDT
[#40]
You don't need a college degree to make it in this world. I did a few years of college but worked days in construction from 5 in the morning until 2-3 in the afternoon and went to school at night until 10-10:30. My wife also has some college but never any loans. Combined we make north of 125k a year.  Work hard at what you do, do good work and apply yourself more then others and you can get ahead in this world. My wife even beat out a person at her work for a position and the other person had a master's degree in the job she and my wife were fighting for.

I am completely against wiping the slate clean for these student loans. If anything they should never be forgiven, these people are supposed to be smart and should know what they are signing up for.
Link Posted: 1/27/2015 10:45:54 PM EDT
[#41]
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Quoted:
Some people really suck at networking.
View Quote


The networking is easier than ever.

The jobs simply aren't there.   Job placement rates for the institution I graduated from went from near 100% to single digits in a single year, and stayed that way for years.   I think they're up to about 25% now, more than half a decade later.    And that's STEM, not underwater basketweaving.


Going to college is going to end up being the biggest mistake that tens of millions of young Americans make in their life.
Link Posted: 1/27/2015 10:46:03 PM EDT
[#42]

Discussion ForumsJump to Quoted PostQuote History
Quoted:





You're right, but I think that a humanities degree could actually be meaningful if they weren't handed out so easily. A BA used to be seen as an indication that the graduate had discipline and was well-rounded, and one could get a bachelor's without risking bankruptcy, too. Now it just means that the holder muddled through four years of watered-down classes.

 
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Discussion ForumsJump to Quoted PostQuote History
Quoted:



Quoted:


Quoted:

It needs to burst. The Some college degrees has have become hugely overvalued.


Fixt.



If you get a STEM BS degree from a decent university it's highly likely you will be able to pay it back.



If you get a humanities BA degree from a private liberal arts college, enjoy your career at Starbuck's.

 


You're right, but I think that a humanities degree could actually be meaningful if they weren't handed out so easily. A BA used to be seen as an indication that the graduate had discipline and was well-rounded, and one could get a bachelor's without risking bankruptcy, too. Now it just means that the holder muddled through four years of watered-down classes.

 


I have sat on hiring committees before, and I can attest that employers do pay attention to the difficulty of the classes you take and not just the overall GPA.



 
Link Posted: 1/27/2015 10:46:26 PM EDT
[#43]
My wife has her MBA.  Zero debt.  Lottery scholarship paid for her BA.  Her work paid for her MBA.  

She makes near twice as much as I do and her job is not nearly as difficult.  

I do agree that college degrees are very over valued.  They are the new high school diploma.  Even entry level jobs requesting a Bachelor's Degree.
Link Posted: 1/27/2015 10:48:48 PM EDT
[#44]
Link Posted: 1/27/2015 10:50:22 PM EDT
[#45]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
I am stunned at the huge debts some undergraduates, and even law students have. Why would a bank give someone six figures in loans for an undergraduate degree? That's like giving me a four million dollar mortgage when my house is appraised for $ 300k  
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Quoted:
Quoted:
Very real, my fiancée has a mountain of student loans and she went to a mid priced private school. She works full time (entry level job) and her loans would eat almost 2/3rds of her take home pay. Thankfully I am doing well.

There are a lot of defaults coming, if I hadn't found a much better job just before her payments started, we'd be doomed.
I am stunned at the huge debts some undergraduates, and even law students have. Why would a bank give someone six figures in loans for an undergraduate degree? That's like giving me a four million dollar mortgage when my house is appraised for $ 300k  

Because there is almost no way for the borrower to default on the loan. The loans are guaranteed.
Link Posted: 1/27/2015 10:50:33 PM EDT
[#46]
A huge chunk of these student loan debts go to foreign carribbean medical schools like St. Georges and Ross. US students that fail admission into US medical schools roll the dice and take out loans to 350K on top of what they owe for their undergraduate degree. These schools have much lower admission standards and class sizes 3 to 4 times larger than US medical schools. Most that graduate and manage to pass the USMLE steps 1, 2, and 3 will not match US residency. They are most likely to default in the billions since their foreign medical degree alone cannot land then a physicians job without finishing residency.

The owners of these foreign medical schools are making a killing off of US student loans.
Link Posted: 1/27/2015 10:55:09 PM EDT
[#47]


Discussion ForumsJump to Quoted PostQuote History
Quoted:



I still don't get how there can be a bubble on student debt.





It's one of the few things out there that is unforgivable debt.  





You don't get to decide to walk away from it like a sub prime loan, mortgage, CC, etc.  You don't get to claim bankruptcy on it.  





They will garnish your shit for the next 50 years if they have to.  How is this not one of the safest loans a lender can make?  Where is the bubble and how does it burst?
View Quote
What happens when there is no "shit" to garnish?
Link Posted: 1/27/2015 10:57:43 PM EDT
[#48]
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Quoted:
Nope, students loans can't touch welfare and soc sec  
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Discussion ForumsJump to Quoted PostQuote History
Quoted:
Quoted:
Quoted:
Quoted:
UNLIKE THE SUBPRIME BUBBLE... THIS DEBT IS NONDISCHARGABLE

There is NO POP when the debt can NEVER be discharged by bankrupty.

The only thing that pops is the gravy train for big edu when the taxpayers collectively decide to stop issuing government backed nondischargable debt.

Privately issued nondischargable debt will continued to be issued to idiots.

The end.
Still doesn't mean the bank will" get it back  

Well if they issued the loan to someone who used their 4 year "computers and technology" degree from DeVry to work a deep fryer, then it will take longer than expected to recover the payments by garnishment of wages... but hey... it will be an eternal revenue stream via penalties and interest. I'm pretty sure welfare and social security can be garnished for student loans as with child support, taxes, and unpaid court fines.
Nope, students loans can't touch welfare and soc sec  

Federal student loans can.

http://www.bankrate.com/finance/retirement/social-security-garnished-1.aspx
Link Posted: 1/27/2015 10:58:10 PM EDT
[#49]
I know two women that have spent the better part of a decade in college.  They both have multiple degrees that are not all worthless.  Since they have gotten out of college they have not gotten jobs because all the entry level positions are "beneath them".  They feel that the degrees entitle them to walk into supervisory or management positions without ever having a job.  They have a silver spoon so debt is not a worry because daddy is taking care of them but I am sure many others have the same mentality.  Pretty hard to pay back loans when you can't find a job befitting your inflated self worth.
Link Posted: 1/27/2015 10:58:34 PM EDT
[#50]
It would help if the loans were capped to the tuition amount.

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