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12-18-2018, 12:07 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Richards
Posts: 1,245
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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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12-18-2018, 12:23 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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12-18-2018, 12:27 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Richards
Posts: 1,245
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Good One , could be a lot of truth how it seems to work !
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12-18-2018, 12:39 PM
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#4
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gone traveling
Join Date: Aug 2006
Posts: 994
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.
Who will be paying for that bailout ?
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12-18-2018, 01:00 PM
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#5
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,730
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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!! 
__________________
*********Go Yankees!*********
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12-18-2018, 01:04 PM
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#6
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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 Quote:
Originally Posted by 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 .
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Seems unlikely. What's different about next year?
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12-18-2018, 01:09 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Jul 2005
Posts: 2,223
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Quote:
Originally Posted by Helena
.
Who will be paying for that bailout ?
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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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12-18-2018, 01:15 PM
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#8
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
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Quote:
Originally Posted by joeea
Seems unlikely. What's different about next year?
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The last digit ends with a 9. You know what they say about years that end with 9 ...
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12-18-2018, 01:26 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Mar 2008
Location: Atlanta Suburb
Posts: 1,499
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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)
__________________
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
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12-18-2018, 01:33 PM
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#10
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gone traveling
Join Date: Mar 2015
Posts: 3,508
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Quote:
Originally Posted by MichaelB
The last digit ends with a 9. You know what they say about years that end with 9 ...
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It's always fine when it ends in 9?
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12-18-2018, 01:43 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Oct 2013
Location: Cholula
Posts: 1,595
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Quote:
Originally Posted by 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.
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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.
__________________
“Before you criticize someone, walk a mile in their shoes. That way, you’ll be a mile from them, and you’ll have their shoes.” – Jack Handey
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12-18-2018, 01:45 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Richards
Posts: 1,245
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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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12-18-2018, 01:50 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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Quote:
Originally Posted by MichaelB
The last digit ends with a 9. You know what they say about years that end with 9 ...
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20x9...………. 
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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12-18-2018, 01:52 PM
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#14
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,094
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Quote:
Originally Posted by 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 .
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Yes, as every child deserves higher education regardless of job opportunities, and at a nice pretty out of State school.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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12-18-2018, 02:02 PM
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#15
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Gone but not forgotten
Join Date: Jul 2012
Location: Peru
Posts: 6,335
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Today
__________________
If you want others to be happy, practice compassion. If you want to be happy, practice compassion.
--Dalai Lama XIV
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12-18-2018, 02:26 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Nov 2016
Location: Richards
Posts: 1,245
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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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12-18-2018, 02:50 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 2,232
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To whom is the money owed? Banks? The schools? The government?
All of the above?
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12-18-2018, 05:14 PM
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#18
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by HadEnuff
To whom is the money owed? Banks? The schools? The government?
All of the above?
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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.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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12-18-2018, 07:07 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,239
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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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12-18-2018, 07:15 PM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,370
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Do you hear bailout coming?
I highly doubt it... reforms perhaps, restructuring perhaps, bail-out no.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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