The Student Loan Crisis: The Future of America is at Stake

a reply to: lakenheath24

$1 trillion in debt highlights my argument perfectly, it does no dispute it.

a reply to: projectvxn

I think it might be a potential solution to drop interest off the student loans currently outstanding, take them back to principal, and have that paid back, especially for the ones that are government issue and guaranteed. The government is not in the business of making money which is what interest is, right?

Also offer more flexible levels of payment on principal payment. Allow income sensitive to actually mean it.

a reply to: Edumakated

You make the voting age more than 18 then you better stop taking 18 year olds into the Armed Forces... I always hated the fact I could take a bullet for my country but never drink a beer, legally, in it till 21.

At 21 I would have never joined.

a reply to: OccamsRazor04

Where are the parents who are supposed to be guiding these kids?

In other kinds of debt. It's generational.

We've come to rely on credit cards and loans to get by. Most of these loans are WAY beyond what the person should be expected to reasonably pay. But there they are. I do not propose to absolve anyone of responsibility. I do not call for that. I call for reforming the system. I do think interest rates should be frozen and allow bankruptcy to discharge some or all of these debts that cannot be repaid.

There are about 50 million Americans with student loans. 40% are being projected to DEFAULT on their loans between now and 2023.

Forbes

The statistic may look like a typo, but 40% of student loan borrowers may default on their student loans by 2023.

Here's what you need to know and what you can do about it.

This is absolutely systemic, pervasive, and will only increase over time. 40 % would spell absolute economic disaster in a very short amount of time.

We are getting warnings now. If we do not start getting people on board to reform these issues NOW we will miss the mark. The collapse of the nation would surely follow considering the political climate we're in today. The rot is starting to cause real damage and we're still asking about the parents of these kids?

I don't think that's good enough. We don't get here without systemic problems beyond the scope of the students or their parents. We have real problems here and it's by design.

Most student loans are controlled by the government not banks.

I understand that and already addressed it.

originally posted by: lakenheath24
What a stupid take IMO.
Colleges have been happy to accept student into programs AND offer them loans KNOWINZG the degrees are worthless. Obviously, you have never been anywhere near the higher education system, so try to educate yourself on education before commenting.

Not sure what you mean. It almost sounds like you are agreeing with me that this shouldn't happen...

a reply to: projectvxn

I don't think that's good enough. We don't get here without systemic problems beyond the scope of the students or their parents. We have real problems here and it's by design.

Exactly so!! Look at our national debt.

www.usdebtclock.org...

a reply to: projectvxn

I agree with most of what you said, but the problem is the kids and the parents, society, not banks. Parents and society are telling kids to take on this debt to experience that college experience.

Colleges should not be in the position of deciding who can and can not attend college. The government already FORCES students to educate themselves on finances, their loan, their debt, and what it means.

Not everyone should go to college. Not everyone should go to college and live on campus. Society needs to stop sending these messages. That is where we differ, with who is to blame.

originally posted by: Newt22
a reply to: Edumakated

You make the voting age more than 18 then you better stop taking 18 year olds into the Armed Forces... I always hated the fact I could take a bullet for my country but never drink a beer, legally, in it till 21.

At 21 I would have never joined.

I agree.. but that is why I specifically stated in my response that military is the exception. If an 18 year old is mature enough to join the military and die for the country, then they should be able to vote / drink / whatever.

a reply to: OccamsRazor04

Bullcrap. Colleges are after the "free money"!!!!!!! After the gubmint started buying student loan debt, then selling it on, it became a money-maker..JUST like the housing crisis. Check I out....

www.investopedia.com...


Again, the student loan crisis is 100% identical to the 2008 housing crisis. I agree, students and parents hold some responsibility, BUT, where are the councilors? The one's that should be saying that a womens studies degree is worth a minimum wage job?

And liberal colleges push this narrative...why? So academics can get wealthy. Ironic as hell aint it!? So parents and students cannot get a good understanding of the system because its all fughazi. This subject REALLY, really makes me angry.

a reply to: OccamsRazor04

We don't differ much, it seems. I have found no fault in your post.

However, I will say that as far as blame is concerned, everyone involved is going to have to take a knee to the nuts on this one.

We either reform this system now or the bubble will burst in 2023 - 2025 when the defaults shoot up passed the projected 40% and into the 50-80% range.

We have to accept the fact that not everyone needs to be in college, and administrators are going to have to accept the fact that charging an 18-year-old a mountain of debt for worthless courses is a good way to collapse the system they benefit from.

originally posted by: projectvxn


I do think interest rates should be frozen and allow bankruptcy to discharge some or all of these debts that cannot be repaid.

Freezing interest rates won't help much. What would help is shaving all the interest off. The interest is basically created out of thin air. The banks gave the principle to the schools not the interest. They can very well eat the interest.

I didn't want to go to college. In my parents generation that was the thing to do. I majored in english/ journalism. Well the journalism classes were only offered to juniors and seniors. All courses were full when I was a junior. Needless to say by the time I became a senior they were not even offered. I passed up an internship to get a mc donalds to help pay for everything. This was over 20 years ago.

I ended up with a $17,000 federal loan. Life happened. Couldn't pay the loan got all the forbarences and extensions possible. The loan is now $75,0000. Taking off all the interest and freezing the interest would help.

I'm on thr IBR paying nothing right now. I read that when it is forgiven, Obama put in a loop hole, all the forgiven debt will be considered income. I'm thinking that the loan in 20 years from now will probablly be 150,000 to 200,000. What is the taxable amount on that? The loan is forgivable 25 years after you start on the IBR program as long as you stay on the plan.

Now the IRS gets involved. I can't pay the tax. Now they arrest me for tax evasion. That would mean I'm looking at jail time. How many others along with me?

Not a very bright future.

For those who originally borrowed 150,000 to 200,000. They will be in serious trouble. I'm guessing these federal loans accumulate interest on a compounded daily basis the way my interest is growing. That is huge. It is hard to comprehend.

When I got the loan I barely understood what interest was let alone how fast it would grow. When I first got a forbearance, the person warned me, but didn't really explain. I didn't even try to make interest payments. I was too focused on my family's survival.

Now I have no hope of paying the loan back with all that interest. I understand the interest now, but cant even afford to pay that since it is too high.

This is a bubble waiting to be burst.

a reply to: projectvxn

In the end we both agree there is a problem, All I can think of as a solution is to steer my kids right when it comes to college someday.

It would be nice if the institutions wouldn't just let everyone in, and only produced or limit the amount of students needed to reflect the demand.

But hell, they even have classes for Zombie Apocalypses, even though truth is becoming more stranger then fiction with Soclisim being a literal zombie horde.

Sad thing is, when everyone special, no one is.