The NEXT BUBBLE JUST BURST: Over $120 Billion In Federal Student Loans In Default

reply to post by trekwebmaster


I'm sorry you feel that way,and I agree the $ game is rigged so the house wins,but nobody put a gun to you or anyone's head to take these loans,though i'm not arguing that your not..an educated person would read the fine print and not act impulsively,yes it is a greedy hand that offers these to students and others,but imo it is the same hand that takes it..

Originally posted by Komodo
Been expecting this to happen since i saw it on the documentry "Inside Job"

they mention this very thing near the end of the movie.. and they were right.. but, my question is.. how could we have stopped this? You can't bankrupt SL's, it's against the law...or at least you couldn't; and since you can't bankrupt a student load, guess what..

they'll come for your house to pay it off..

Getting an education in one hand, being homeless in the other. Almost like they want you to not get an education beyond highchool, because they need sub college level workers to replace the numbers the babyboomers are dropping out on in old age. You know why another world war will happen? Because of all this, they fubar'd big time and because they need to get the world pop down to 500 million (Georgia Guidestones). This pyramid was built to come crashing down when it got too large to maintain stability, and crush everyone dumb enough to be underneath it when it fell.

The last time I checked, the majority of the policy makers in the government come from places like Goldman Sachs, Mega Corporations etc, so they know what they are doing. Blowing bubbles to rape the country with.

The problem is greed and corruption from the top, trickling down.
Romney is a fine case example, where he is a vulture capitalist, eating anything that comes his way.
As many posters said in regards to Romney, it is a Dog eat Dog world, so why would anyone be surprised when people in society start to take that attitude as well and flip the finger at the Banksters and the Government?

If the "Job Creators" like Romney and so on, do not care about the country, nor show any allegiance to it, by shipping jobs overseas, then why should any American's in regards to daily life, as well as patriotism via serving in the military for example?

Let the Romney types load up the war gear and go fight their wars themselves.

Originally posted by loam
reply to post by MidnightTide

 

Originally posted by MidnightTide
Why does blame the banker get thrown under the bus, but never the government?

Because of ignorance.

People blame the free markets for the abuses that arise without ever understanding why they occur in the first place.

And now we've entered a new era of vilifying business in this country, ensuring our problems will only get much worse.

Businesses are *supposed* to make money.

Complaining about that is like complaining that water is wet.

What is broken is the role government plays in the free markets.

It incentivizes the creation of bubbles....it restricts real competition....and it promotes fraud. The trifecta of financial market disaster.

But for most of the public, it's easier to be spoon-fed dribble from the MSM, making them believe the corporate guys are the evil ones.

Someone recently made this analogy: Its like the issue with Pitbulls. It's not the breed that is bad, but the owner who encourages and produces the dangerous behavior.

Plain and simple.

edit on 30-9-2012 by loam because: (no reason given)

I paid off all my loans, but I am not one of those pointing my finger at others to pay their's if it means sticking it to the banks, or bringing the system down so the thieves can rot. These banksters take money from our government at 0 interest and like the thieves they are, charge everyone outrageous interest rates to fatten their wallets.

Let them all ROT

Originally posted by Cornczech
I have not read all of the responses on this thread, but I HAD to respond as this issue has just recently come to bite me in the proverbial arse....
I have a 25 year old student loan that I apparently am considered "defaulted" on. here's the story:
I took out about $5,000 in Federal student loans in 1988 to attend a for-profit vocational school in Phoenix to become a surgical technologist...to BETTER myself, (eyes rolling)....
About 4 months before I was set to graduate, the school shut down taking all of my 5 grand and leaving me in the lurch with regard to my education. Another local vocational college allowed me to finish, with me having to borrow additional funds to graduate. My little piece of paper cost me a LOT of money and I never got to work as a surgical tech outside of the field I had already been working in: ophthalmology....so a useless education because every hospital wanted EXPERIENCE and my schooling was not continuous.
I paid on my student loan like a good monkey for the first 3 years after graduation, even though I never got to work in the operating room as a surgical technologist. I stopped when my finances got bad and could no longer afford the whopping interest and fines and fees.......fast forward 15 years...after never hearing a word about my student loan...I get a letter stating that my student loan had been discharged as a class action suit was brought against the original school that closed and that my debt had been discharged as a result of this lawsuit. I never worried about that loan because I refused to be personally ripped off by the closure of the school and the uselessness of my "degree"....remember....this loan was taken out in 1988 and was for less than 5 grand....
I got a call a month ago from someone stating they were with the DOE and that I owed THOUSANDS OF DOLLARS! I think the amount with fees and penalties and this WHOPPING interest rate was over 30 (yes THIRTY) thousand dollars on a 5 thousand dollar original loan! (one that had been discharged with a lawsuit AND a bankruptcy in 1994)
So...my point being....EVEN AFTER DEATH...a student loan collection agency will call to get money from the living relatives...from wills...taxes.......ANYTHING...and had my loan only been a few grand over the 5 grand I originally borrowed, then I could have handled it....but THIRTY GRAND from a FIVE GRAND loan? This is usury and COMPLETELY illegal and immoral...hell..even the BIBLE...the Torah...and maybe even the Koran, (I've never read it so...) states that usury is immoral!
This goes WAAAAAAAAAY beyond a "debt bubble" but another RIP OFF from the big banks to make sure the average human is a debt slave FOREVER.......
medical debt and student loan debt....two HUGE killers in American society that could be avoided if we were like OTHER civilized nations that provide free healthcare and a free education.....
but my opinion doesn't count or even matter in this nasty country that Amerika has become........

The govt better start cutting some breaks to these debtors, or the suicide rate is going to continue upwards. Wait, like any of them really give a sh1t. Do you have to have a cosigner typically, to take out a student loan? Anyone?

I agree with this as well.
All Multi National Corporations and Financial Institutions that show no allegiance to this country need to leave.
Unfortunately, these parasites are going nowhere, since they own our government, and will not let go off the golden goose short of a Revolution.

Originally posted by rickymouse
We need to get half way descent paying factories and teach kids how to work in the trades and agriculture. All the old farmers and ranchers that supply our food are getting old. Farming and animal husbandry is a respectable job. We need plumbers, electricians, construction workers, etc. These jobs don't need college education, all they need is high school education. No loans to default on are needed. These college kids are straddled with debt and have lost years of working. Overeducated workers many times feel they are worth more than the trades jobs and screw up the other workers. They need to get the country back on track and fire all the people that said this would work. I see many big businesses going under within two years because noone will be able to afford things. We need to nip this in the butt, not by 2020, that will be too late. Our big businesses need to take immediate action to get this country back on line or get their butts out of this country and let someone who will create real jobs get a shot. Big corporations who outsource jobs can move their office to a foreign country and be banned from selling anything in the USA. Half of them are fronts anyway for other interests. They are not real Americans if they are outsourcing everything.

reply to post by surrealist


It is really WORSE than the subprime implosion, IMO, simply because the student loans are Federally Backed and based on a person instead of assets.

That means that if we forgive all of that debt we weaken the dollar more and probably lose our position globally. This will certainly lead to an all out war.

This is just one more nail in the coffin of the US economy. There were plenty of warnings, but Congress and the last several administrations made no attempt to reign in spending. Things are so out of hand now, that I'm afraid it's not repairable without a great deal of blood, sweat and tears. Don't just blame Bush, or Obama, or Congress,or the banks. They are all at fault and so are the American people who wanted their cake and eat it too.
Americans have been living beyond their means for decades now, and it's time to pay the pauper. You can't keep borrowing from Peter to pay Paul.
There is nothing in the Constitution that says people are guaranteed a government loan for education. If you can't afford college, then get a job, any job, even minimum wage, and save the money until you can afford it. I came from a poor family, and worked full time, while going to undergraduate, then graduate school, You can get a good education at just about any reputable college, It's what you put into your education that counts,
Stop relying on the government, and rely on yourself. You'll appreciate it more, and you won't be in debt for the rest of your life.
One more thought-forget the iphones, laptops, vid games, and flat screen tv's. Eat spaghetti 7 days a week, like we did.
For what it is worth, this is not directed at any one poster here on this thread. It is merely my thoughts on the entire matter of student loans, and the entitlement attitude prevalent in this country today.

Doesn't surprise me one bit. The cost of a college education is going through the roof. Students are graduating with loans that are similar to mortgages. In the mean time, some colleges continue to build new buildings on campuses on a yearly basis. Than after you graduate, they flood you with calls asking for donations. What's up with that? How much more money do they want to squeeze out of you?

I really don't see how higher education is going to be affordable for the majority of families in the near future. The only people who will be able to afford a degree will be the rich. The whole system is heading for a train wreck.

reply to post by loam


As a current college student who's enrolled at DePaul University (Private School- Tuition is 32k per year), I have to say, it can be tricky trying to maintain stability and order in ones life... Luckily for me, I'm borrowing under $8k per year and I'm able to cover the rest with my current job... I do feel for those who borrow $30-50k each year, getting meaningless degrees. Kids today need to pick their degrees based off the current demands are workforce is showing or they will find themselves working at Starbucks and defaulting on their loan obligations... I'm a business major with a focus on IT and management, so I'm getting my degree in an area where I currently hold a good job... 18 year old need to be educated better coming out of HS about loans, degrees, and their future. Many are clueless and they're all willing to just sign on the dotted line...

I could have borrowed the full amount each year, but I knew it would be pointless borrowing. Lots of kids today take the maximum amount so they have "spending" (partying) money on campus...I probably could have taken out $5k this year and been just fine, but I wanted to make sure I had enough for books and all the unknowns that pop in a school year, and being in my first quarter you never know what may happen in the 2nd or 3rd of a school year...

reply to post by jhn7537


Wrong! According to St Udio (see posts above) student loans cannot be defaulted on. Students unable to repay will be herded into slave labor camps - I assume to the satisfaction of all the nutcase far-right wingers (or is that whingers) under a Mitt Romney administration.

reply to post by all2human


If you want to obtain an education and have no independent means to afford it, the only option is TO take those loans.

So in essence, it is a gun to the head, as you so put it.

Stay objective and on topic, you're generalizing and stereotyping by saying that: "No one put a gun to your head."

It's not that kind of situation. Putting a gun to a person's head infers they had no choice but agreeing to a contract / loan there is a choice, but is there? Not really if you want an "education."

reply to post by jhn7537


Interesting. I wish the tuition I paid was only 8k a year.

For the 55k I borrowed, I received two degrees; and I used every drop I could which equated to an Associates and a Bachelor of Science degrees, which were well worth it, but if I could have learned there would be no job here afterwards, that didn't involve digging ditches or working at McDonald's I still would not have changed anything.

The knowledge I have learned from this entire educational experience is that most of the "ideology" we have in America is based on false-rhetoric and just a bunch of useless ideology which is as quaint as writing with a quill pen and not a word-processor. This country is two-faced and the ones I would tend to trust are those relegated to the lower ends of the system and not the bureaucratic idiots who make policy which is so out of touch it's pathetic.

That's what happens when you make a big business out of college. Students are encouraged to take out loans to increase their quality of life. The scholarships take care of most of the tuition and the parents throw in some of the money for books. The kids want to go college away from home, which the parents can't afford, and they take out as much money as they can so they won't have to get a job. If they got rid of golf, archery, sports, and the fun classes from college the students could finish and go to work earlier. Why is so much English required in college when it is available in high school for free. Teachers salaries are too big a part of our economy today, this is a major problem. We need to start making more stuff we really need in America. Between the Medical and pharmaceutical industries and the schooling industry there are a lot of jobs. These jobs shouldn't be such a high percentage of the economy. This needs to be addressed.

K-12 is needed and more teaching of students to follow the trades should be stressed. Don't get the kids all hooked on getting a high paying cushy job.

reply to post by surrealist


yes they can and hundreds if not thousands are defaulted on...by defaulted on is defined as not paying.

They can be discharged successfully by a good bankruptcy attorney if shown they constitute an undue hardship.

Check your facts, you're wrong.

reply to post by ProfEmeritus


You're preaching to the choir Prof.

I am 47 and was considered a non-traditional student, had no scholarships or other means, and had to take 2 years worth of prep course-work to even take college level courses. Was this my fault? No, it wasn't; and it was the public school system. It's even worse now when teachers teaching "fuzzy-math," or allowing the use of calculators when a student doesn't know how to do math by hand? If you do not know the skeleton's bones, then you do not know anything about the structure of the human body and want to be a doctor?

It makes no sense.

Originally posted by trekwebmaster
reply to post by all2human

 

If you only see two options then there you go..
and i am completely on topic and have a valid point.
Apparently you are saying people have no choice and i'm outright saying that they do!!
I'm sorry for your predicament but your acting like a victim in all this and it flat-out isn't true.
Truth is you knowingly made a deal and defaulted on it,the reasons are irrelevant.

edit on 30-9-2012 by all2human because: (no reason given)

reply to post by irishchic


Hold people that work in contempt? I hold those kids who show up for college, get the check, then skip-out to never be seen again. They crowd up the parking lot for the students who actually need financial assistance going to college who are older and finish their degrees. How much money has the government wasted on those one-semester students?

I have paid my dues and when I found-out this world didn't offer anything except menial jobs with a high school diploma, my mind was boggled again when I found that the same world offered the same for those with one or more college degrees. It's not what you know, it's who you know and nepotism is alive and well in this country and it never was addressed, only the names have changed to suit the situation.

It's really a joke, putting people into debt with FIAT currency for a FIAT system which is a little more than worthless.

reply to post by all2human


classic example of narrow-mindedness.

I said:

It's not that kind of situation. Putting a gun to a person's head infers they had no choice but agreeing to a contract / loan there is a choice, but is there? Not really if you want an "education."

Or did you not see the "?" at the end? Can you tell if a sentence is a question or a statement? Apparently not.

What you stated was they do have a choice. If you want a college education and do not have the funds, then there is no choice. Whose going to pay for it? No scholarship, no one pays except you. Nobody. Then who is going to finance the education? The man in the moon?

reply to post by trekwebmaster


No I'm not wrong! I'm just citing St Udio's posts as he brought this up to challenge my original post where I queried if the default on student loans could be big enough to match the housing sub-prime crisis.