We have not been shy about exposing the massive (and unsustainable) bubble of credit being blown into the economy via Student Loans from the government. We have not been afraid to note the dramatic rise in delinquencies among these loans - and the implications for the government. However, as Bloomberg reports, it appears the impact of this exuberance has come back to bite the colleges themselves. In what can only be described as avendor-financing model, the so-called Perkins loans (for students with extraordinary financial hardships) have seen defaults surging more than 20%. The vicious circle, though, has begun as the ponzi of using these revolving loan funds to 'fund' the next round of students is collapsing thanks to the rise in delinquencies. Schools such as Yale, Penn, and George Washington are becoming very aggressive at going after delinquent student borrowers. While financially hard-up graduates complain of no jobs, the schools are not impressed: "You could take a job at Subway or wherever to pay the bills ... It seems like basic responsibility to me," but perhaps that is the point - avoiding responsibility is seemingly rewarded in the new normal.
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4 comments:
why should these students expect to have to pay back their loans when they see what the government is doing? what do you expect??
As good little brainwashed Obamanites I sure they expect the taxpayers to pick it up, after all we owe them for their choice of wanting to become a little brainwashed Obamanites. We see them come and go at our company. They come in fresh from college, sit at a computer, have no incentive to produce, have no business ethics, have no social interaction skills, usually poor writing and communication skills, but they can tell you our need for socialism! Plus they expect an immediate $60K starting salary. When out the door they go, it reienforces their Marxist belief about the evil capitalists. For some reason I have no sympathy for them.
As a recent graduate, I can tell you that paying off student debt is difficult in today's time. Not everyone in my generation is an "Obamanite" looking to avoid paying off student loans. The lazy, freeloaders that our government has created are truely a disgust to our society. It is Uncle Sam's fault for creating this.
The housing market seems to be the biggest difficulty to overcome. Sky high prices for rentals, homes, and land lots make it this way. I have two jobs; one full time and one part time. 40% of my income goes toward rent(I live in the cheapest place I could possibly find in a section of town full of crime). 25% goes toward uncle sam's extortions. This leaves me 35% for student loans, car insurance, fuel, food, and utilities. Student loan monthly payments consume 32% of my income. Many times I find myself eating a bowl of rice for dinner, even skipping dinner up to four nights a week. My house stays a chilling 55 degress in the winter. Student loans are the last on my priorities, otherwise I would be a homeless man. Yes, Obama along with today's government almost encourages us to become lazy so you tax payers will have to take care of us by paying our bills. Anyone who is a true patron with an honest heart will bust their behind like I'm doing to pay off this debt. Please do not automatically assume that recent graduates are all the same. It is indeed, a true struggle and most of it is due to this "housing bubble" where we are expected to pay twice the amount of what the place is truely worth.
I work for the State Government as my primary source of income. I have not received a monetary raise in six consecutive years due to the State's Budget and where they decide to allocate funds. Yet the price of everything else continues thier rise, i.e. food, fuel, housing, taxes, electricity, natural gas. It's the economy/U.S. Government's fault for all of this, not the struggling citizens who take punch after kick that Obama and his crew throw at us.
11:25 Glad to see your post, it gives me hope. I started out poor after school also and had some tough times. And I will agree in the economic climate you are now in it is even worse. I which I could say "hang in there your hard work and perseverance will pay off" but then there is Obama and the democrats. Work with us to get rid of them and then things will get better (hopefully). (8:57)
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