The next bubble getting ready to pop?

Fieldmouse · 08-20-2011, 05:36 AM

This is interesting and remember the left pushes and pushes this crap all the time. Add recently Obama took the student loan program fully under control of the Feds instead of the private sector. I also wonder why the Dems never address the out of control rising costs of college? In stead, they fuel the beast.

http://www.foxnews.com/politics/2011...s-next-bubble/

bergall · 08-22-2011, 12:02 AM

Student loan debt is a pretty hefty sum to tackle. Does EVERYBODY have to go to college, even the ones who can't afford to pay the fare ? It was not always this way...college was for people who could afford to pay tuition...or work their way thru their degree programs. Certainly, there were 'City university' and "community college' which, in NYC at one time were 'freebies'...no tuition, just pay for your books...but now, a college education has become:
a: a necessity for anyone entering the workforce
b: a tool for business to weed out undesirables
c: an entitlement for everyone from near-idiot level to brainiacs , what with government
student loan programs.

Why do electricians, plumbers, laborers, construction workers, cops, fire, sanitation, why do these all need college diplomas ?

Part of the student debt problem in this country is the dearth of jobs for tens of thousands of college grads every year...they go from classroom to nothing. We have degreed engineers taking jobs as bank tellers and counter help, lawyers who've passed the BAR exam accepting secretarial work....it's no small wonder that the 'student loan' business is ready to pop like a blowfish....

sachiko · 08-22-2011, 03:38 AM

The student loan program enabled colleges to vastly increase their operating expenses since students could defer tuition payment through student loans.

I have a full academic scholarship which pays my tuition. If we had to pay it would be over $14,000 per year. Add living expenses to that and there is no way you can do that on a part-time job. By contrast, when my husband was an undergraduate, his tuition was $246 per year.

Student loans are guaranteed by the government, and they can't be eliminated by bankruptcy. Still, if you can't pay, you can't pay.

Just another example of the government screwing things up.

bergall · 08-22-2011, 09:40 PM

Unless there is some scrutiny in the issuance of these student loans, we're looking at the same kind of crap as what crashed the housing market....bad loans to people who can never pay them back. How many jobs are out there for college grads ? Not TOO many, that's for sure. So maybe 40% get jobs...that leaves 60% to go back home to live with mommy and daddy and unless they have co-signers on those loans, they'll eventually default. THe bubble's inflated and ready....what will be the precipitating factor, I wonder ?

sachiko · 08-23-2011, 03:02 AM

Quote:

Originally Posted by bergall

Unless there is some scrutiny in the issuance of these student loans, we're looking at the same kind of crap as what crashed the housing market....bad loans to people who can never pay them back. How many jobs are out there for college grads ? Not TOO many, that's for sure. So maybe 40% get jobs...that leaves 60% to go back home to live with mommy and daddy and unless they have co-signers on those loans, they'll eventually default. THe bubble's inflated and ready....what will be the precipitating factor, I wonder ?

The state universities were built to provide the opportunity for the children of peasants to get a college education. The states covered the greatest share of expenses, and a job of some kind provided for living expenses.

But the student loan program enables the states to spend tax money on other stuff and the schools jacked up tuition.

The loans are given to students who have no credit history. The expectation was that, having graduated with a degree, they would be able to pay back the loans. As you might expect, some students filed bankruptcy upon graduation and had the debt wiped out. So student loans cannot now be eliminated by bankruptcy. However, most people do pay the money back. Unfortunately, the job market has gotten more difficult and people are having a difficult time finding work that will enable them to repay the loans.

Many people do work in the trades, but lots of people who work in the trades are also out of work. This recession is not affecting only college students.

Luckily, I'm bright enough to get that scholarship and my husband provides me with food and shelter. But if we had to pay tuition, there is no way that I could go to college without taking out student loans.