Do I hear Bailout coming

[Breedlove]

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.

 

[brewer12345]

 

[Breedlove]

Good One , could be a lot of truth how it seems to work !

 

[Helena]

.

Who will be paying for that bailout ?

 

[aja8888]

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!!

 

[joeea]

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?

 

[Lakewood90712]

.

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.

 

[MichaelB]

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 ...

 

[flintnational]

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)

 

[joeea]

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?

 

[candrew]

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.

 

[Breedlove]

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 .

 

[ShokWaveRider]

The last digit ends with a 9. You know what they say about years that end with 9 ...

20x9...……….

 

[Sunset]

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.

 

[imoldernu]

Today

 

[Breedlove]

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.

 

[HadEnuff]

To whom is the money owed? Banks? The schools? The government?

All of the above?

 

[jazz4cash]

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.

 

[Texas Proud]

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...

 

[pb4uski]

Do you hear bailout coming?

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

 

[Lakewood90712]

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...

ITT Tech and a several other technical schools went under when the gov. stopped the pipeline of loans because of the dismal performance and bogus claims of the great jobs being told to students.

AFAIK, the gov ( us taxpayers ) made no attempt to follow the money back when these schools went into BK.

PS a number of smaller medical assistant type schools have sprung up in the wake, I suspect using only slightly cleaned up business practices.

 

[38Chevy454]

Do you hear bailout coming?

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

I know this will border on political, but I have no confidence the politicians won't use bailout as a way to buy votes. They do it on many other programs.

 

[Koolau]

For at least some portion of their academic 'careers' my kids went to the same state university I attended. Their tuition bills were about 25X what I paid back in the day. While the school has changed somewhat (a few extra buildings, etc.) the enrollment is nearly the same. The number of schools has only changed as they have specialized within existing schools. The campus has been "gee-whizzed" a bit (it's now a walking/bike riding campus - no cars inside.) The sports complexes have been expanded. There are new edifices.

The education is virtually the same (I would say degraded, based on how smart my kids are and yet how little they actually learned - but that's subjective.) What has really changed is the layering of staff, the layering of student aid, the layering of schools administration, the layering of government liaison.

My point, far beyond the effect of base inflation, costs are bloated beyond recognition. IMO there has been little or no (apparent) improvement in education (or even number of students educated) AND there is no better ability for meaningful placement with the degrees received. My gut tells me that schools follow the same principles of economics that everything else follows. You give people more money to go to school and the costs will go up. I worked summers to go to school and my kids took loans and grants/aid. The only real difference I see is the relative cost. Obviously, this is not a rigorous study in economics - just one man's observation, so YMMV.

 

[Breedlove]

I think there will be a bailout , just an old fool talking . In 2020 when things start really going crazy . as someone said Bailout and forgiveness . 1.5 trillion . It hurt us when our son went he worked but he couldn't pay for it all but we made right on it . Now it has become a joke to pay it back . My nephew is with Texas schools and his answer is that the government has no business backing some of these worthless degrees . He also said sports is a big part why college is so much.