All of a Sudden Students Have Stopped Paying Their Loans, Again—Why?

[AquaCityBoy]

honestly if your not gettin a degree in engineering or finance,

 

[Uncle Kingpin]

I don't feel you need to borrow money to buy any of the things you listed. All of them can be bought using cash. Borrowing is certainly more convenient and allows you to "purchase" much more quickly than saving for them but it also has the most risk.

No one with a paid for house went into foreclosure
No one with a paid for car has ever had it reposessed
No one with a paid for education experienced loan default

The only thing you need a good credit score for is to borrow money at a "good" interest rate. Student loans are another animal but the terms of the loans are listed. I also don't think you NEED to borrow money in order to get a college education. Again, it's just more convenient.

Nobody "needs" to borrow money. I'm not criticizing anyones needs. I'm criticizing their wants. They want to go to college. They want loans to go. They want an easy course load and a low-stress degree program. They want to party instead of study. But they dont want to pay their loans back when they get a worthless degree.

 

[Black smoke and cac jokes]

oh we definitely have SLABS now (student loan asset backed securities). They just trade in obscure, arcane markets even though there's over a trillion borrowed.

they've even opened up a more transparent swaps market on students loans.

Well the sudden default that is needed in a bubble burst is nowhere insight plus the majority of the debt holder is the government so no way it will have a bubble burst effect. Yea, IB are definitely out to benefit from the loans but that excess purchasing of loans as an assets is missing, I might be wrong but I definitely don't see a major crash similar to the 07 bubble.

 

[Wild self]

Nobody "needs" to borrow money. I'm not criticizing anyones needs. I'm criticizing their wants. They want to go to college. They want loans to go. They want an easy course load and a low-stress degree program. They want to party instead of study. But they dont want to pay their loans back when they get a worthless degree.

If everyone did STEM major for money, it would look like India. Diversity in the economy makes America strong.

 

[88m3]

If everyone did STEM major for money, it would look like India. Diversity in the economy makes America strong.

Half of India’s population still defecates in the open

http://www.thehindu.com/sci-tech/he...till-defecates-in-the-open/article5367467.ece


?

 

[Wild self]

Half of India’s population still defecates in the open

http://www.thehindu.com/sci-tech/he...till-defecates-in-the-open/article5367467.ece


?

not in the social standards, but in the educational ones. Maybe colleges should be exclusively for STEM and artificially inflate tuition if that is all the American economy is going to reduce itself to.

 

[88m3]

not in the social standards, but in the educational ones. Maybe colleges should be exclusively for STEM and artificially inflate tuition if that is all the American economy is going to reduce itself to.

I think that's sarcasm.. hopefully...


the over hyping of stem is really corny to me, no jealousy.

 

[Wild self]

I think that's sarcasm.. hopefully...


the over hyping of stem is really corny to me, no jealousy.

Its going to be like the lawyer situation in the 90s: it would just be too many of them.

 

[Domingo Halliburton]

Well the sudden default that is needed in a bubble burst is nowhere insight plus the majority of the debt holder is the government so no way it will have a bubble burst effect. Yea, IB are definitely out to benefit from the loans but that excess purchasing of loans as an assets is missing, I might be wrong but I definitely don't see a major crash similar to the 07 bubble.

I tend to agree. The government is not letting it fail. It's getting bailed out.

student loans are not the same you can't negotiate with creditors (uncle sam) youre just stuck with student loans.

edit: everybody knows the US Government is picking up the tab. Why do you think its so easy to sell them?