NOW You Noticed? (Student Loans)

The Market Ticker – NOW You Noticed? (Student Loans)

I don’t know whether the laugh, cry, or wish for (another) hurricane or other natural disaster to destroy the clown-car brigade involved in this intentional, rabid and outrageous assault on our young people.

Payments on 11% of student-loan balances were 90 or more days behind at the end of September, up from 8.9% at the end of June, a rate that now exceeds that for credit cards. Delinquency rates for all other consumer-debt categories fell or were flat.

Nearly all student loans—93% of them last year—are made directly by the government, which asks little or nothing about borrowers’ ability to repay, or about what sort of education they intend to pursue.

The government doesn’t care if you can pay.  All they care about is making sure that the banks and colleges get to screw you, and if they can manage to get you to “volunteer” for that screwing, so much the better.

I’ve been writing about this for several years; you can find examples all through the Ticker, and have been breaking out student loans from the consumer credit report since the federal government shifted nearly all student lending to themselves a couple of years ago.

This is the next bubble to pop and the worst part of it is that it was targeted directly and intentionally at inexperienced people barely of legal age and has intentionally screwed our young adult population both through exploitive terms (e.g. no ability to discharge said debt in bankruptcy) and the intentional feedback mechanism into college pricing.

Were the federal government not directly involved in this and in fact the designer of this scheme someone would probably craft a racketeering complaint and go after the colleges and lenders involved.

When the federal government does it, however, we call it “public policy.”

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Comments
10 Responses to “NOW You Noticed? (Student Loans)”
  1. Poof says:

    Re:Student loans,In some cases original loan papers can not be produced !

  2. The people need to take control and spend only what we earn, after we earn it. No card or credit debt and put these banks out of business. My children were mailed credit cards from the time they turned legal. I was so furious to have these offers come in the mail to them. The lenders litterally set them up as soon as possible to suck them into debt. Live in a cheaper house, save for the big one houses will not rise in price for decades now. Drive a cheaper car save up for a nicer one and pay cash. I have lenders emailing calling me faing me for business loans pre approved even Wow what a deal I would like to choke every one of them when they send them. So disgusting and harrassing. Use your printer ink to advertise and your harrassed on the phones and emails. Egregious advertising terrorism.

  3. stripes says:

    I have a good example of the failure of the college system. A girl I know worked her behind off to become a teacher. She started preparing in H.S. and also went to night school..was a full time college student went to community college for the first 2 years to cut down on costs and then took a student loan in her Grandparents names to finish in a University and took online classes as well. The State changed the test toward the end of her schooling and made it harder to pass the test. She couldn’t pass it and couldn’t afford to go back to school for another year or two. She is now a shampoo girl in a salon and a waitress in a bar a few nights a week to pay her student debt of $80,000.00 + dollars she took in her Grandparents names. It’s ugly stuff.

    • neidermeyer says:

      That girls a moron ,, becoming a teacher is the EASIEST path in college ,, Surely you’ve heard the saying “If you can .. DO ,, If you can’t .. TEACH” … a teaching degree is a FALLBACK degree to basketweaving … I helped a relative get her cert and with just a few days of browsing the study guide I passed the cert practice test EASILY with no prior study.

      What I do agree with is the reality that the government through education loan writing has caused the unrealistic increases in higher education pricing .. and that it is part of the master plan to enslave the masses.

  4. tim says:

    Yup…….a mess…..then bring collection companys into picture to tack on more debt and tell you lies and suck in money w fake deals etc….the money you pay them they take and then sell the debt……another raquet.

  5. Sarah says:

    Change bankruptcy code to handle all debts the same including, student loans and mortgages. That will put a stop to the counterfiting cartel, and forever break their reign of terror.
    Educate without punishment and house without servitude!

    • Tim says:

      That would be fair but unfortunately the Banks would still win because the gov gaurenteed most loans. I would love to see the gov just make them affordable, and stick the Big Banks w the bill….period ! .the Banks earned it through their deceptions. Ive noticed that the gov just keeps hiring collection agencies…that sell to each other ? the collections companies have long leashes too. Ive had 3000 intercepted tax returns and nobody knows where it went…lol Citi Bank involved no wonder. Arghhh its all depressing, Im out.

      • stripes says:

        I happened to catch the interview with Ex FDIC chairperson Sheila Baird on CNBC the other day. Ms. Baird basically said….the Govt has overguaranteed this junk and can’t possibly back up all of this garbage.

  6. Tim says:

    Young kids as well as good parents believe in education and put their trust in these lending institutions because of their misconception that in this country its what you do, and that you just pay the monthly payments when its over because its designed to be affordable. Traditionally, they feel “this country” backs education and its just what we do?. However the GREEDY BANKS jumped into the scheme and discovered a new way to screw parents and their government and the youth in our deteriorating country,.BIG BANKS cover all angles through illusion that they are offering a heart felt service, like the devil, devils deals.The banks get the government to back the loans which gives the greedy scum suckers a green light to take advantage of the borrower and the government.Big Banks are slowely sucking this country dry…these are sub prime school loans just like the mortgage industry with all their secondary market bullshit…..and because the government got sucked up into the deal they have no choice but to back the banks…..Its just so out of control….collection agencies calling three times a day, just ploping thousands of dollars on the debt…no signatures on the notes…we are F*CKED in this country if our government doesnt start getting these banks under control! People have had enough,there lives ruined with mortgage debt, school debt, and everyone else in this country adapting to the scumbag business techniques (Comcast, Verizon, Dental Services, Insurance Companies )of sucking extra dollars from its people….People will eventually take a stand against this…..this is the land of struggle….NOT oppertunity anymore…..I have spent my whole life working two jobs 1) Correctional Officer 2) Educating Youth as a Swimming Coach…32 years…I spent my retirement on my dream home and land that I carved building lots out of 20 acres I planned to sell and enjoy my grand kids….One West Bank has me tied up in Neg Am and wont let me sell property…My credit crashed (always perfect credit), Foreclosure imminent, School loans for 2 of 4 sons (2 in service 1 Afghanistan (why?) )school loans w payments expected high enough to be paying for 2 new Cadiallacs. I retired from corrections and now just teach…..every day…ohhh and did I mention my wife left me because of debt…LOL, ITS A GREAT COUNTRY…Who Ever Really Runs IT…

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