Higher Ed bubble in two charts
Saturday, March 23, 2013 at 09:46am 13 Comments
Via Wapo, Past due student loans multiply:
While student loans are growing as a part of the total consumer debt balance in the United States, they are still a small part. But they are now leading among loans that are 90 days or more past due.
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Hey students, continue to support your black Messiah, Lord, God, and Savior. Hope and change spring eternal, ya know …
If I interpret those graphs correctly, the emerging generation continued to vote for Obama even as their predicament worsened, especially in 2012, under his policies.
I read something the other day that said that not one net job had been created for younger voting-age workers since Obama came to office.
That may be an overstatement, but not by much.
Couple that with very expensive…and absolutely worthless…degrees taken on credit, and you have a real catastrophe for young people (not all of whom are guilty of voting Obama).
The chart on the left shows that while all the other categories of mortgage loans have seen declines since ’08, student loans continue to grow. Golly gosh, wonder why that is?
You’re seeing what moral hazard looks like. They probably expect a bailout.
Expect a bailout? Of course! And here’s how they’ll get it- vote as many times as you can, with as many friends as you can round up from the pool of illegal aliens and dead folks.
Cast those votes for the most left-leaning democrats on the ballot and presto! your loan will be forgiven- the government will pay for it (wow aren’t they nice at ‘the government’..).
If autos and investment banking were too big to fail, when those are compared to higher education we ain’t seen nothing yet.
Since Obamacare passed, the government owns the student loan industry. So many college students should expect student loan forgiveness in the future from a desperate politician.
One thing they absolutely need to do is repeal the ban on being able to discharge student loan debt in bankruptcy. Right now, there is literally almost no way for people get rid of debt if they made a mistake in choosing a field. I know people my age who have over 100,000$ in student loan debt and have been put on income based repayment since they are working minimum wage jobs. They will be debt slaves the rest of their lives, which is completely insane.
I would guess that rule arose because there is no tangible collateral when assuming an education loan. The extraordinary debt accumulates because of price distortions in that market. They need to address those market distortions, principally due to federal government intrusion, so people can once again afford to pay for their higher education.
[…] THE HIGHER EDUCATION BUBBLE in two charts. […]
The typical Gen X-er and below is pretty much incapable of critical thinking involving planning, cause and effect. Massive student loan debt being a symptom.
Obama had his finger perfectly on the pulse of that generation (and their parents) when he commanded they remain on the parents’ insurance until age 26; enshrining in federal law the reality that, for this generation, their adolescence extends well into what used to be thought of as full adulthood.
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