Student loans are starting to bite the economy.
https://finance.yahoo.com/news/student-loans-starting-bite-economy-110018109.html
https://finance.yahoo.com/news/student-loans-starting-bite-economy-110018109.html
Student loans starting to bite the economy
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Stupid youngsters shouldn't have used the student loans system as a bottomless money pit. Now the day of reckoning and listen to them cry for tax payers to bail them out. Ed
It's not stupid youngsters, it's the debt based monetary system.
mortgages and sub prime were the go to money making mechanism before 2008...now it's telling kids that they need a bachelors degree to flip burgers to "be competitive", and here's a debt mechanism that survives bankruptcy to ensure that you are paying the moneygoround for the rest of your life.
mortgages and sub prime were the go to money making mechanism before 2008...now it's telling kids that they need a bachelors degree to flip burgers to "be competitive", and here's a debt mechanism that survives bankruptcy to ensure that you are paying the moneygoround for the rest of your life.
Originally Posted By: Shannow
It's not stupid youngsters, it's the debt based monetary system.
mortgages and sub prime were the go to money making mechanism before 2008...now it's telling kids that they need a bachelors degree to flip burgers to "be competitive", and here's a debt mechanism that survives bankruptcy to ensure that you are paying the moneygoround for the rest of your life.
Yep. The plan is working.
It's not stupid youngsters, it's the debt based monetary system.
mortgages and sub prime were the go to money making mechanism before 2008...now it's telling kids that they need a bachelors degree to flip burgers to "be competitive", and here's a debt mechanism that survives bankruptcy to ensure that you are paying the moneygoround for the rest of your life.
Yep. The plan is working.
Per the article...
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
Students need to take out loans that are appropriate to the jobs they are shooting for. $200K loan may be appropriate for an electrical engineer but not for an English teacher.
People on this side of the pond don't have to deal with any student loans.
I'll let you figure out why
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
I'll let you figure out why
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
Originally Posted By: Eddie
Stupid youngsters shouldn't have used the student loans system as a bottomless money pit. Now the day of reckoning and listen to them cry for tax payers to bail them out. Ed
Our government should never have provided subsidized student loans. The loans are the problem it enabled the College cost inflation. Big education loves the billions of dollars flowing each year into their pockets. End the loans solve the problem.
Stupid youngsters shouldn't have used the student loans system as a bottomless money pit. Now the day of reckoning and listen to them cry for tax payers to bail them out. Ed
Our government should never have provided subsidized student loans. The loans are the problem it enabled the College cost inflation. Big education loves the billions of dollars flowing each year into their pockets. End the loans solve the problem.
The REAL blameworthy party is [insert narrative that justifies preferred style of righteous indignation].
Obviously.
What the heck do you think this is, a real problem in the real world that merits complex and nuanced analysis? You take that junk out of here. The problem is simple, and anyone who disagrees must be [literally all negative adjectives].
Obviously.
What the heck do you think this is, a real problem in the real world that merits complex and nuanced analysis? You take that junk out of here. The problem is simple, and anyone who disagrees must be [literally all negative adjectives].
Originally Posted By: FordCapriDriver
People on this s
ide of the pond don't have to deal with any student loans.
I'll let you figure out why
Well they do in the UK. And the same problems are starting. The loans are the problem end them.
People on this s
ide of the pond don't have to deal with any student loans.
I'll let you figure out why
Well they do in the UK. And the same problems are starting. The loans are the problem end them.
Originally Posted By: Shannow
Per the article...
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
We put our three children through college. First graduated in 2007-total cost $12,500. Last graduated in 2014 from same school total cost
$22,500
Per the article...
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
We put our three children through college. First graduated in 2007-total cost $12,500. Last graduated in 2014 from same school total cost
$22,500
Yup, I have a co-worker that just graduated with his Bachelors in Nursing, has over $30,000 in debt because of it.
28 and still living with his parents (but now that he has a nursing job is getting ready to move out).
Still, he should have it paid off pretty quickly since he actually has a degree that is employable with actual income.
I got my BSN and incurred no debt at all (took me a little longer, but still).
28 and still living with his parents (but now that he has a nursing job is getting ready to move out).
Still, he should have it paid off pretty quickly since he actually has a degree that is employable with actual income.
I got my BSN and incurred no debt at all (took me a little longer, but still).
- Students demanded a resort-like college experience.
- There's a thriving market in counterfeit textbooks, partially offsetting the 88% increase in textbook costs.
- A college degree isn't for everyone.
- A high-school education isn't what it used to be.
- Education Secretary Betsy DeVos is proposing to repeal the Obama Administration’s 2014 “gainful employment” rule, which was the tip of the left’s spear against for-profit colleges. Under the rule, colleges whose graduates have annual debt payments exceeding 8% of their income would lose federal student aid. Team Obama had grabbed the 8% threshold from a 2006 research paper on mortgage eligibility standards, which the authors acknowledged had no “particular merit or justification” as a gauge of manageable student debt.
The department also applied the rule exclusively to vocational programs—i.e., for-profits—yet Monroe College President Marc Jerome calculated based on the department’s College Scorecard that 15.5% of programs at public and 41.5% at nonprofits would have failed the test. When Mrs. DeVos proposed applying the rule to all colleges, nonprofit and public colleges howled.
Colleges noted, among other things, that the metric would punish schools that enroll large numbers of low-income students who take out more debt and those whose graduates choose lower-paying jobs in public service. Many college programs could also be forced to close during recessions as wages dip even as demand for vocational training increases.
https://www.wsj.com/articles/devoss-gainful-deregulation-1534546682
- There's a thriving market in counterfeit textbooks, partially offsetting the 88% increase in textbook costs.
- A college degree isn't for everyone.
- A high-school education isn't what it used to be.
- Education Secretary Betsy DeVos is proposing to repeal the Obama Administration’s 2014 “gainful employment” rule, which was the tip of the left’s spear against for-profit colleges. Under the rule, colleges whose graduates have annual debt payments exceeding 8% of their income would lose federal student aid. Team Obama had grabbed the 8% threshold from a 2006 research paper on mortgage eligibility standards, which the authors acknowledged had no “particular merit or justification” as a gauge of manageable student debt.
The department also applied the rule exclusively to vocational programs—i.e., for-profits—yet Monroe College President Marc Jerome calculated based on the department’s College Scorecard that 15.5% of programs at public and 41.5% at nonprofits would have failed the test. When Mrs. DeVos proposed applying the rule to all colleges, nonprofit and public colleges howled.
Colleges noted, among other things, that the metric would punish schools that enroll large numbers of low-income students who take out more debt and those whose graduates choose lower-paying jobs in public service. Many college programs could also be forced to close during recessions as wages dip even as demand for vocational training increases.
https://www.wsj.com/articles/devoss-gainful-deregulation-1534546682
Originally Posted By: rshaw125
Originally Posted By: Eddie
Stupid youngsters shouldn't have used the student loans system as a bottomless money pit. Now the day of reckoning and listen to them cry for tax payers to bail them out. Ed
Our government should never have provided subsidized student loans. The loans are the problem it enabled the College cost inflation. Big education loves the billions of dollars flowing each year into their pockets. End the loans solve the problem.
YES-the government backed student loans turned institutions of higher education into big businesses. Sort of like a college military-industrial complex!!
Originally Posted By: Eddie
Stupid youngsters shouldn't have used the student loans system as a bottomless money pit. Now the day of reckoning and listen to them cry for tax payers to bail them out. Ed
Our government should never have provided subsidized student loans. The loans are the problem it enabled the College cost inflation. Big education loves the billions of dollars flowing each year into their pockets. End the loans solve the problem.
YES-the government backed student loans turned institutions of higher education into big businesses. Sort of like a college military-industrial complex!!
Originally Posted By: Shannow
Per the article...
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
This is a Yapoo Article. Con't expect facts to jive with their fantasy. Yapoo news is the worst.
Per the article...
Quote:
From 2007 through 2017, the CPI rose by 21 percent. Over that same period, college tuition costs jumped 63 percent, school housing surged 51 percent and the price of textbooks by 88 percent. These troubling growth rates wipe away any mystery behind today’s staggering levels of student loan debt, which have almost tripled from the 2007 starting point of $545 billion
So the students are to blame for that ???
This is a Yapoo Article. Con't expect facts to jive with their fantasy. Yapoo news is the worst.
Originally Posted By: FordCapriDriver
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
I'm not sure the problem is as bad as some suggest.
Firstly, loans are created out of thin air when they are made. That is how banking works. Prior to the loan, the money did not exist. After the loan, the money does exist. The true collateral for such loans is the borrower's risk of repayment.
If the loan is guaranteed in some way, that risk is zero. So the bank has no reason not to make the loan. (Failure to repay screws with the amount of cash a bank needs to keep on hand versus it's loan portfolio ... it varies because the Central Bank (in the US, the Federal Reserve) can raise or lower the requirement based on how they want to control the money supply .... but 10% is pretty close most of the time. So if they have $100 million in deposits, they can loan an additional $900 million created out of thin air by depositing the loan amount into an account or cutting a check. If someone defaults on a loan, they need to call in other loans to balance the cash reserve requirement. This shrinks the money supply.
That is all a long way to say that by getting students to take out a student loan, with no collateral and no payment history, you've taken down the psychological barrier that people who have never taken out a loan must get over. Once you've made one loan, you are far more likely to consider borrowing as a solution to a financial problem. This encouragement of borrowing creates money (out of thin air, remember) in the economy, which grows as a result.
The old rule of thumb was that every dollar created via an increase in the Money Supply will be spent seven times in one year, creating $7 in economic benefit. I suspect with electronic transactions and internet shopping that may be even higher today; the $7 figure comes from when cash was king (1970's) and you had to physically go somewhere to spend it.
All considered, Student Loans are more likely to increase prosperity as reduce it, especially since now we have a group of citizens who will borrow at a younger age and may borrow more in future than a similar young person without Student Loan experience. As borrowing is the major element in the Money Supply, this increases GDP and most other economic metrics versus a similar economy with less borrowing.
There are dangers of course ... inflation, and bubbles that precede crashes. Remember the part about calling in loans when someone defaults ... it shrinks the money supply and tends to cascade through the economy as businesses retract to cope. A bank that is having difficulty reconciling it's loans, defaulted loans and it's cash requirement, will not make new loans as it is literally against the law to do so under those conditions ... the ratios don't allow it until it becomes solvent with it's loan and deposit numbers which are reported and reconciled with the Central Bank every night.
But even with economic collapses (eg the 2009 fiasco) economies recover to the previous high quicker and economic metrics improve faster when the money supply was greater prior to the collapse.
Firstly, loans are created out of thin air when they are made. That is how banking works. Prior to the loan, the money did not exist. After the loan, the money does exist. The true collateral for such loans is the borrower's risk of repayment.
If the loan is guaranteed in some way, that risk is zero. So the bank has no reason not to make the loan. (Failure to repay screws with the amount of cash a bank needs to keep on hand versus it's loan portfolio ... it varies because the Central Bank (in the US, the Federal Reserve) can raise or lower the requirement based on how they want to control the money supply .... but 10% is pretty close most of the time. So if they have $100 million in deposits, they can loan an additional $900 million created out of thin air by depositing the loan amount into an account or cutting a check. If someone defaults on a loan, they need to call in other loans to balance the cash reserve requirement. This shrinks the money supply.
That is all a long way to say that by getting students to take out a student loan, with no collateral and no payment history, you've taken down the psychological barrier that people who have never taken out a loan must get over. Once you've made one loan, you are far more likely to consider borrowing as a solution to a financial problem. This encouragement of borrowing creates money (out of thin air, remember) in the economy, which grows as a result.
The old rule of thumb was that every dollar created via an increase in the Money Supply will be spent seven times in one year, creating $7 in economic benefit. I suspect with electronic transactions and internet shopping that may be even higher today; the $7 figure comes from when cash was king (1970's) and you had to physically go somewhere to spend it.
All considered, Student Loans are more likely to increase prosperity as reduce it, especially since now we have a group of citizens who will borrow at a younger age and may borrow more in future than a similar young person without Student Loan experience. As borrowing is the major element in the Money Supply, this increases GDP and most other economic metrics versus a similar economy with less borrowing.
There are dangers of course ... inflation, and bubbles that precede crashes. Remember the part about calling in loans when someone defaults ... it shrinks the money supply and tends to cascade through the economy as businesses retract to cope. A bank that is having difficulty reconciling it's loans, defaulted loans and it's cash requirement, will not make new loans as it is literally against the law to do so under those conditions ... the ratios don't allow it until it becomes solvent with it's loan and deposit numbers which are reported and reconciled with the Central Bank every night.
But even with economic collapses (eg the 2009 fiasco) economies recover to the previous high quicker and economic metrics improve faster when the money supply was greater prior to the collapse.
Originally Posted By: Oily_Thing
Originally Posted By: FordCapriDriver
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
Yeah and that it starting to take a bite out of the economy as well. My company sells to machine shops etc. and we consistently hear that they are having a hard time to find people in the industry. Everyone wants the degree and 9-5 clean office job with a ton of pay. That's the problem.
Originally Posted By: FordCapriDriver
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
Yeah and that it starting to take a bite out of the economy as well. My company sells to machine shops etc. and we consistently hear that they are having a hard time to find people in the industry. Everyone wants the degree and 9-5 clean office job with a ton of pay. That's the problem.
Originally Posted By: StevieC
Originally Posted By: Oily_Thing
Originally Posted By: FordCapriDriver
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
Yeah and that it starting to take a bite out of the economy as well. My company sells to machine shops etc. and we consistently hear that they are having a hard time to find people in the industry. Everyone wants the degree and 9-5 clean office job with a ton of pay. That's the problem.
Lots of the Trade [?] type jobs take quite a skill look at the auto repair trade. Lots of continuing education. I have machinist friends ton of continuing education. THe A&P friends were always keeping up with the latest tech etc.
Originally Posted By: Oily_Thing
Originally Posted By: FordCapriDriver
I also find the American stereotype that if you don't go to college / university you are basically a failure and a loser to be funny and sad at the same time.
No kidding. Why get a four year college degree when a year or two of a technical school results in wages approaching six figures after a few years in the field?
Yeah and that it starting to take a bite out of the economy as well. My company sells to machine shops etc. and we consistently hear that they are having a hard time to find people in the industry. Everyone wants the degree and 9-5 clean office job with a ton of pay. That's the problem.
Lots of the Trade [?] type jobs take quite a skill look at the auto repair trade. Lots of continuing education. I have machinist friends ton of continuing education. THe A&P friends were always keeping up with the latest tech etc.
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