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Student Loan Debt Now Exceeds Credit Card Debt!

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The government loves to hand out money for college educations creating debt that most kids will not be able to repay for a very long time. What a brilliant plan. Saddle young adults with 40-80 grand in debt which is guaranteed government income for 20 or 30 years per each student borrower.

The real problem with government loans is that you can never get out of them. If you default on the loan they will ruin your credit, turn you into collections, confiscate your tax refund, take legal action and garnish your wages if you ever have any.  I think the mafia might have been nicer to people who defaulted on their debt. They just cut off a finger or two. (lol)

If the talking heads in Washington really wanted to stimulate our economy, they would pass a law to allow people to pay 10% of the amount owed on college loans and call it even. That would rapidly put a lot of money back into our economy.

By forgiving College debt the kids trapped in loan hell and living with their parents, could get married, purchase a home, and start their lives. Heck, some of them might even have enough capital to start a small business and create a few jobs.

The politicians running for President might want to take a position on reducing college debt which will most likely guarantee them the millennial vote. Just saying....

 

 

How Student Loans Are Dragging Our Economy

You would be surprised at how much the student loan debt is becoming a drag on the economy as a whole in the United States.

<snip>

For the first time in history, student loan debt now exceeds the total national credit card debt, owing $1.1 trillion.

“The Federal Reserve, the FDIC and the Consumer Financial Protection Bureau have all done reports showing that young people with student loan debt are not taking the economic steps they would ordinary take at this point in their lives. The student loan debt is becoming a drag on the whole economy,” Warren said. “And yet the federal government is making billions in profits.”

These billions in profits that the federal government is making is costing far too much for young adults. One in every five young adults between the ages of 18 to 34 are in poverty. Only 65 percent of young adults are actually employed. What about the other 35 percent?

Wells Fargo released a study which revealed that 31 percent of millennials regret going through and paying for college instead of getting a job and obtaining job experience. However, in a tight job market with barely any jobs available, that isn’t really the best option either.

http://economyincrisis.org/content/how-student-loans-are-dragging-our-economy

 

For those with student debt, Florida a poor place to flourish

A new study examining how state economies help or hurt residents coping with student debt finds Florida ranks among the more oppressive states.

The Sunshine State ranks 40th among states and the District of Columbia based on the average size of student debt, the proportion of students with debt, the share of students with loans in default, the jobless rate for residents aged 25 to 34, and student debt as a percentage of income.

Put more simply, Florida falls into the lowest ranks because its residents with student loans tend to have higher levels of such debt, higher default rates and face a job market with below-average wages in a state that is an increasingly expensive place to live.

The implication of this burden grows in time as debt-laden residents tend to hold off on larger purchases, such as homes, and appear to marry and start families later — effectively delaying their contributions to growing the economy. Florida's increasingly expensive real estate and high rents also require residents to devote a higher percentage of their wages to cover housing expenses.

http://www.tampabay.com/news/business/for-those-with-student-debt-florida-a-poor-choice-to-flourish/2240699

 

 

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<snip>

Current American bankruptcy laws don’t forgive certain kinds of debt, regardless of bankruptcy status. These unforgivable debts include spousal alimony, child support and student loans.

In fact, student loans are the only form of loan that is considered to be unforgivable under the current system.

<snip>

http://elitedaily.com/money/unforgivable-debt/1106688/

It's a trap!

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If you left education up to the people with apprenticeships to learn a trade then student loans would be obsolete. However. learning a trade is too blue collar for a generation that is programmed to gain the position of headmaster without paying the dues to get there. An MBA is worthless in an economy that produces nothing except in those professions that also produce nothing such as banking and stock trading.

http://wearemadashell.net/wp-content/uploads/2013/09/bankster-evolution.jpg

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