OH NO NO NO
THE DEBT SLAVERY IS SUPPOSED TO BE FOR MY WAGECUCK KIDS NOT FOR WEALTHY LANDED BOOMERS LIKE MYSELF
CALL AARP RIGHT NOW
Student debt crisis
Gavin Robinson
Matthew Barnes
Don't keep us in suspense, give us the sources.
Zachary Baker
Original source here:
benefitspro.com
The cited brookings report is here, for context remember that many American adults cosign loans with their kids which college counselors encourage because it means they can get larger student loans. The result is that when the student defaults, so does the parent which means the parent can get their wages/social security checks gouged by a court.
brookings.edu
tldr:
Apologists would quickly point out that most of the problems are from for-profit colleges, but even the "low" 25% default rate for public college loans is ten times the 30-yr fixed mortgage default rate of 2.5% (which itself peaked at 5% during the 2007 mortgage meltdown). There is no good news here except that a crisis is coming.
Logan Gomez
The eternal pork always comes out even stronger after a financial crisis. I don't hold much hope that something will change for better after another one.
Sorry for my pessimism
Jordan Myers
Given that student loans are packaged just like home mortgages into securities, it's very easy seeing this being a direct sequel to the 2008 crisis. Bank consolidation is inevitable, the unpredictable part is what happens if a huge amount of Americans see their savings wiped due to bad student loans or a bad job market. Right now, in what is supposedly a booming economy, about 25% of public college debtors are underwater. In a bad economy this number is going to skyrocket and fuck up retirees that didn't realize they were putting their houses and their 401ks on the line when they cosigned their kids' student loans.
An entire generation of Americans with their money wiped. This doesn't bode well.
Joseph White
Anthony Lopez
something something entitlement, something something just get a REAL degree, something something trades, something something you aren't entitled to a job, something something you don't deserve to be paid a higher wage
Zachary Phillips
that logic works great until petty bourgs and bourgs themselves suddenly find the bank nuking their credit scores because their kids can't find enough work to pay their loans
granted not everyone cosigns, but my point is that the problem runs from the bottom of society up to the top pretty quickly especially if a bank drops dead because they were expecting the government to insure their losses from these loans
Asher Diaz
Tbh get a degree in something useful and the debt will not matter. Also why the fuck would you buy a 3000usd laptop for college?
Jordan Roberts
And then overtly fascist governments come about, promise the public the world, and send them off to die in another World War.
Dylan Gray
That's the best case scenario. The data sets used above are made by comparing 1996 data to 2004 data, as this graph shows the rates they're getting are much smaller than for students that got loans after. Specifically student loans flatlined during the dotcom bust, but kept growing through the great recession. The data also does not cover all cases and it's impossible to know how many loans are actually nonpreforming, rather than just in total default. One of the things the study mentions (and the reason for it's existence) is that there is not much good or reliable data on this phenomenon, similar to the circumstances before the 2008 crash.
Late 2020s is extremely optimistic. Again with a (supposedly) booming economy a quarter of student loan debtors are in default. If the job market suddenly shrinks, there's going to be blood as grads walk into an empty job market expecting large salaries that justify their investment.
Julian Hall
Because everyone else goes on spending sprees after they "get in", especially when they are getting their first credit cards and bank accounts at 18. This is how banks hook them young.
Jeremiah Gutierrez
180,000 boomers is only about .40% of the overall US population, but the 2008 crash happened with only about 2,100,000 different individuals defaulting. As there are about 40-50 million Americans with student loans, this is about 11% of America's population being directly affected by student loans.
Noah Mitchell
I accept your concession
Nathan Rogers
we can't have another happening thread this is too much
Leo Ortiz
Wow, was right on the money.
Nicholas Walker
Bentley Turner
such as
Noah Jones
Because the school told you you'd need it and that it would help you succeed, and because you're about to drop tens or hundreds of thousands of dollars on a 4-12 year education $3000 is a drop in the fucking bucket.
Leo Adams
>we just need affordable student loans
Daniel Butler
I thought le ebin job creators and all their followers knew basic economics?
Julian Ramirez
Thank good for bougie parents
Gabriel Robinson
FULL ACCELERATIONISM
Nathan Brown
need to go faster
Jose Collins
I understand that the global economy is not doing well and that we are heading into another crisis. I'm just skeptical whether it will benefit the left at all (at least that what I thought the pic in the OP implied). I doubt that people will blame the capitalist system and start the world revolution. I think the main narrative is going to be something like
and then basically this minus a world war.
Adrian Campbell
Jesus Christ, yankeestan are the worst of the worst…
William Adams
Sebastian Brown
Disabuse yourself of the notion that this will end peacefully.
Blake Martinez
From the second link:
Sebastian Powell
Lol. I have over 100K in student debt. Definitely won't pay it back cause fuck em. Will probably leave the US when the time for repaent comes cause in 1-2 years the economy is gonna collapse anyways. Feels pretty good.
Christian Turner
I don't think we're that close yet.
Alexander Lopez
while I have hope for you, I don't think it's going to be that soon
Xavier Reed
Well regardless I'm gonna leave the country. However the economy should collapse by 2020 cause even ultraporkies like Ray Dalio are predicting a recession soon.
Robert Powell
Better hop to, because I really wouldn't be surprised if porky made it illegal to leave if you've still got debt to pay. It's not like they're above that sort of thing.
Ayden Reyes
So how does the current situation in the financial industry compare with 2007/2008? I know there are far fewer subprime mortgages today, and less "creative" lending on the part of banks, but in some other respects it seems like it may even be worse.
Eli Reyes
They're literally doing the same shit with student loans. 2018 will do to 1929 what 1929 did to 1873.
Levi Hernandez
while true, there's more subprime loans all around
the auto industry is a specific example of that, they're a ticking time bomb right now
Carson Lopez
...
Connor Hughes
Womp womp