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Mar 15 2017

People Are Not Paying Back Student Loans

Despite the conspicuously declining quality of education, tuition has been skyrocketing. How do students afford it? By borrowing, the student loan industry having been nationalized as part of the ObamaCare power grab. How do they pay back these massive loans, especially after their degrees in moonbattery barely qualify them to flip burgers at McDonald’s? Increasingly, they don’t:

A new analysis of federal student loans reveals the number of people severely behind on repaying their debt has soared in the last year, painting a bleak picture of one of the largest government programs.

The Consumer Federation of America released a study Tuesday that found that millions of people had not made a payment on $137 billion in federal student loans for at least nine months in 2016, a 14 percent increase in defaults from a year earlier. The consumer watchdog used the latest data from the Education Department, which manages $1.3 trillion in federal student debt owed by 42.4 million Americans.

What’s striking about the findings is that Americans have a variety of repayment options to avoid default. The Obama administration expanded programs that cap monthly payments to a percentage of earnings, but even though millions of people are enrolled in those income-driven plans, there is still a disconnect.

Americans are too well armed for communism to be imposed all at once without a fight, so it is done in increments. When these increments are too large, they are often rejected. Then it becomes necessary to be more furtive. If voters won’t go along with making tuition “free” by electing an irresponsible leftist like Bernie Sanders, the money is passed out anyway as loans that are not necessarily expected to be repaid.

money-swirling-down-drain

On a tip from Bodhisattva.



  • rpp618

    Obama’s children.

  • octa bright

    They have debts in the six figures and a barista’s pay at best. Of course they are going to default. The only difference is that they can’t clear the debt by going bankrupt.
    There will be an amnesty if only to end the expense of having worthless loans on the books. It also will be the end of the student loan program and many if not most of the small to mid sized colleges.

  • About twenty or so years back, I was paying off a student loan and lost my job. I wrote to them, asking for a deferment until I was employed again. No sweat, they gave me one.

    Got back to work, gave myself a month to get bills and such straightened out, then I wrote to them telling them I was working and asking whether I needed to pay extra per month to catch up on my loan repayment, or if my payments were the same, or what.

    Their response? To send me a bill telling me my payments were … ‘$0.00 per month’.

    For two years. I kept sending the bill back to them with a note: ‘Seriously, how much?’ The reply? ‘$0.00’.

    Almost as if they didn’t WANT me to repay the loan.

    I finally gave up when I was diagnosed with congestive heart failure and ended up going on Disability.

  • SkankHunt42

    i can’t wait! i hope it’s wiped out by the time my kids want to go to college (got 10 years still). i graduated 13 years ago with $30K in loans, a year ago i cashed out one investment account to pay off the remaining $11K and eliminated a $180/month payment from my expenses. wasn’t that hard to do with a computer science degree 😉

    today, i work full time job, make 6 digit salary, support my wife (stay home mom) and 2 kids, pay a mortgage, bills, etc. no way in hell can I afford college tuition for my kids. they will either have to go to cheap local schools and work to pay for it, or take SMALL loans. i will not let my children get 100’s of 1000’s of $$$,$$$ in debt!!! madness!!!

  • Rotohammer

    You can count on progressives to create phony markets, where free market forces don’t work. Remember the old Cap and Trade slogan, about “unleashing the free market” to reduce carbon emissions? LOL. What a joke.

    Federal student loans make it easy for universities to raise costs. There’s not much incentive to control costs. That $1.3 trillion in student loan debt represents $1.3 trillion paid to universities and screwball professors. They’re laughing all the way to the bank.

    Universities need to run their own damn student loan programs, or be co-signers on federal loans. When universities have real skin in the game, student borrowers will have to get real grades for real classes and earn real degrees.

  • Mack

    Silly me; I paid mine back.

  • Mr. Freemarket

    The percentage of white men at universities has dramatically dropped even a loan repayment rates have dropped.

    Comnection?

  • Mr. Freemarket

    Was it a loan with a bank or the federal government?

  • SNuss

    Why not make student loans only available for STEM classes (science, technology, engineering and mathematics), so that theses snowflakes will, at least, be exposed to marketable skills? That might weed out some of the slackers.

  • EVERYDAY PRESIDENT ☆ ᵀᴿᵁᴹᴾ

    .
    And some people neglect to pay billions, yes billions, in back taxes while spending like drunken sailors on disrupting entire nations:

    George Soros Had Until 2017 To Pay $7 Billion In Taxes After Avoiding IRS!

    https://americanlookout.com/rms-flashback-george-soros-owed-7billion/
    .

  • EVERYDAY PRESIDENT ☆ ᵀᴿᵁᴹᴾ

    .
    Maybe time to create a string of historically white colleges, free of racial harassment and other forms of Moonbattery?

    Just apply really strict admissions standards and make the rules clear from the get-go and if a few non-whites pass the exams fair and square, why not admit them too, as long as they are there to learn like everyone else.
    .

  • troyez

    Well I feel stupid! I’ve been paying mine off since I graduated in 2006, and I’ve never missed a payment. Stupid me!

  • ICEvictim

    the federal government needs to be removed from ALL lending, other than to enforce contract law that crosses state lines. No student loans. No mortgage pools. Nothing.

  • ICEvictim

    ————
    “Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats.” – H. L. Mencken

  • ICEvictim

    you might include Business majors too

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  • ICEvictim

    yep, the male population has learned that there are lots of high paying jobs like electrician that do not need more than a solid HS education and perhaps a year or two at a technical school (for faster certification).

    Women generally do not enter the trades (although more are), so when mom and dad can’t figure out what to do with Muffy they send her to college in hopes of marrying her off to someone who WILL have a career. Of course she’ll fall in love with the Arts major who will never earn more than minimum wage and be stoned all the time, get her pregnant and then kick her to the curb.

  • ICEvictim

    because if the student or the school take one penny of government money the school will be forced to Kau Tau to the gods of “equality”

    this is why schools like Hillsdale are so wonderful. They will not let one cent of government money cross their property line.

  • ICEvictim

    consider external degree programs from reputable U’s. Many of them will now give credit for challenge exams using analogs like the GRE Subject Tests (subject specific and beyond the GRE) and the CLEP. I managed to bypass a load of time wasters and wound up with an accredited degree from the University of the State of New York.

  • SNuss

    Yes, those would also be acceptable.

  • Mr. Freemarket

    Guys in engineering generally don’t associate much with the Arts majors…..maybe because the Arts majors think they are nerds and won’t give them the time of day.

    Big mistake on their part.

  • Mr. Freemarket

    You can count on the federal government and court system to step in an prevent such a thing from happening.

  • ICEvictim

    my frat was a sort of mixed majors group but by and large STEM and Business. We had engineers, pre-meds, pre-dent, etc. We also had mondo boozers and smokers too, ha ha. Triangle across the street was for the more serious STEM folks. We were kind of like Animal House of STEM campus.

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