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Do I hear Bailout coming
Old 12-18-2018, 01:07 PM   #1
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Do I hear Bailout coming

With 1.5 Trillion in school loan debt and interest rates going up this looks like a perfect storm for a bailout next year .

These student loans interest rates are going up and likely they will never be paid back . Younger families with investments for future education costs could be in trouble with the market falling. Say 40yr old parents sending their children to college next year. This debt is larger then credit card debt in the U S today.
Education is BIG business.
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Old 12-18-2018, 01:23 PM   #2
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Old 12-18-2018, 01:27 PM   #3
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Good One , could be a lot of truth how it seems to work !
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Old 12-18-2018, 01:39 PM   #4
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Who will be paying for that bailout ?
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Old 12-18-2018, 02:00 PM   #5
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Hey, what about my $20,000 dental bills for the implants? Why can't that be bailed out too? I mean, I went to college too!!
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Old 12-18-2018, 02:04 PM   #6
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Originally Posted by Breedlove View Post
With 1.5 Trillion in school loan debt and interest rates going up this looks like a perfect storm for a bailout next year .
Seems unlikely. What's different about next year?
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Old 12-18-2018, 02:09 PM   #7
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Who will be paying for that bailout ?
If there is one, and I don't think there will be , the payers will be children and grandchildren of the student loan recipients. Most of us will be dead and gone by then.
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Old 12-18-2018, 02:15 PM   #8
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Seems unlikely. What's different about next year?
The last digit ends with a 9. You know what they say about years that end with 9 ...
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Old 12-18-2018, 02:26 PM   #9
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Random observations:

1) I can remember when I was 18. Loaning me $100k would not have been the best use of your money or my time.

2) After we paid for his college and he goes into the military, DS stated "If I had planned this better, the military would have paid for my education".

3) DD enrolled at the local community college next semester. A full load is about $1,500. She is living at home. What shall we do with the remaining $98.5k? (just kidding)
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Old 12-18-2018, 02:33 PM   #10
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The last digit ends with a 9. You know what they say about years that end with 9 ...
It's always fine when it ends in 9?
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Old 12-18-2018, 02:43 PM   #11
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Random observations:

1) I can remember when I was 18. Loaning me $100k would not have been the best use of your money or my time.
Agreed.

Back when I was 18, the average cost of a university education in the state of Michigan was about $1,700/year. Tuition, room & board.

Loaning me $8K to complete a 4-year degree back then would have been a much safer bet. Most families could afford to send their kid to college w/o having to borrow the dough.
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Old 12-18-2018, 02:45 PM   #12
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Here is a thing to think about , interest rates are going up . Lots of these students are children to older parents a 50K hit to a 50 year old person will quickly destroy their retirement . Lots of these kids have debt beyond 50K . I believe many of these loans are government guaranteed . This will break the program quickly . Maybe it is the number but 1.5 trillion is a lot of money that probably will never be paid off . This is greater then all credit card debt . Every semester more students are asking for loans .
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Old 12-18-2018, 02:50 PM   #13
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The last digit ends with a 9. You know what they say about years that end with 9 ...
20x9...……….
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Old 12-18-2018, 02:52 PM   #14
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Here is a thing to think about , interest rates are going up . Lots of these students are children to older parents a 50K hit to a 50 year old person will quickly destroy their retirement . Lots of these kids have debt beyond 50K . I believe many of these loans are government guaranteed . This will break the program quickly . Maybe it is the number but 1.5 trillion is a lot of money that probably will never be paid off . This is greater then all credit card debt . Every semester more students are asking for loans .
Yes, as every child deserves higher education regardless of job opportunities, and at a nice pretty out of State school.
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Old 12-18-2018, 03:02 PM   #15
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Old 12-18-2018, 03:26 PM   #16
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I was lucky when I went to school I paid and my employer paid . But I had no extra money to go hang out and spend . I WAS BROKE . Our son went to school in Austin and it was expensive . He was a College baseball player and worked small jobs . I remember him working at a GYM on Christmas day . We never got into the 30K plus loans . But I don't understand I will talk to a kid and ask them if they are in college and they will say . No I was last semester and I have decided to take some time off . I don't know what I want to do . Meantime they have this debt and never return to school. To many schools and these guidance counselors are not doing their jobs.
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Old 12-18-2018, 03:50 PM   #17
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To whom is the money owed? Banks? The schools? The government?

All of the above?
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Old 12-18-2018, 06:14 PM   #18
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To whom is the money owed? Banks? The schools? The government?

All of the above?
None to the schools, I'd say. Mostly it's banks and private lenders. The gov't kicks in a subsidy if the student qualifies ( but that does not get repaid). The rates are pretty high. I've noticed a couple of my credit unions are promoting student loan refinancing to more reasonable rates.
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Old 12-18-2018, 08:07 PM   #19
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I forget which TV program I was watching (maybe 60 minutes) but they were talking about all the people who are going to get their loan forgiven due to a court order... the ones attending when the school went under...


Well, they had this guy who went to ITT Tech and had $200,000 in student loans!!!! REALLY.... Any system that would allow this to happen is a broken system... anybody who is borrowing this kind of money for a tech job is never going to be able to pay it back... it is really stupid how this problem has occurred and also the proposed 'fix'...



Yea, just let everybody off the hook for being stupid... and let us pay for it... with zero or almost zero consequences to the parties that profited from this horrible system...
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Old 12-18-2018, 08:15 PM   #20
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Do you hear bailout coming?

I highly doubt it... reforms perhaps, restructuring perhaps, bail-out no.
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