The Great Student Loan Debt Default: Over $270 Billion in Loans Are 30 Days Or More Past Due

by | Mar 26, 2012 | Headline News | 180 comments

Do you LOVE America?


    Like the housing bubble, which was predicated on easy money and rising prices, student loan lending has increased to unprecedented levels over the last decade.

    There is some $1 Trillion in outstanding student loan debt in the United States, the majority of it borrowed by individuals who were sold the idea that they could go to college,  party with their buddies at fraternity and sorority houses for four years, get a piece of paper that says they’ve received higher education, and then land a job paying $100,000 a year right out of school.

    Somewhere along the way, however, things changed. When these highly educated young adults finally received their degrees, it turned out that all of those hundred thousand dollar jobs they were promised were either exported to countries where laborers are paid a fraction of the cost to do the same work, or they simply evaporated as demand for goods and services in America and around the world collapsed.

    With no jobs, no way to pay for their own livings expenses, and a mountain of debt an alarming 85% of 2011 college graduates were forced to move back in with mom and dad after they got out of school.

    Now, though full-blown economic recovery is touted as being just around the corner, millions of debt laden graduates are still finding it difficult, if not impossible, to find any meaningful labor, especially the kind of labor that would make it possible for them to pay off those expensive loans. In September of 2011 college loan default rates had approached 15%. Six months later, things have gotten much, much worse. According to the Federal Reserve, those rates are rising and fully 27% of all outstanding collage loans are now 30 days or more past due:

    In other words at least $270 billion in student loans are no longer current. That this is happening with interest rates at record lows is quite stunning and a loud wake up call that it is not rates that determine affordability and sustainability: it is general economic conditions, deplorable as they may be, which have made the popping of the student loan bubble inevitable.

    It also means that if the rise in interest rate continues, then the student loan bubble will pop that much faster, and bring another $1 trillion in unintended consequences on the shoulders of the US taxpayer who once again will be left footing the bill.

    From Fitch:

    Fitch believes most student loan asset-backed securities (ABS) transactions remain well protected due to the government guarantee on Family Federal Education Program (FFELP) loans. The Federal Reserve Bank of New York recently reported that as many as 27% of all student loan borrowers are more than 30 days past due. Recent estimates mark outstanding student loans at $900 billion- $1 trillion. Fitch believes that the recent increase in past-due and defaulted student loans presents a risk to investors in private student loan ABS, but not those in ABS trusts backed by FFELP loans.

    Why is the bubble starting to pop now?

    Several macroeconomic factors are putting pressure on student loan borrowers. The main ones are unemployment and underemployment. The Bureau of Labor Statistics estimates the current unemployment rate for people 20 to 24 years old at nearly 14% and for those 25 to 34 years old, 8.7%. Underemployment is difficult to measure for these demographics, but it is likely having a negative impact.

    Actually, no: the unemployment for 18-24 year olds is 46%. Yup: 46%.

    Source: Zero Hedge

    One in four college graduates can’t make good on their student loans. These are massive numbers, folks.

    Those default rates have nowhere to go but up – and yes, we’re going to refer to them as ‘default rates’, because even though the borrowers have yet to technically default, the odds of those back payments ever being made are virtually nil. There are simply no jobs out there for college graduates, as evidenced by the 46% unemployment rate among that age group.

    In October of 2010 we warned of the popping of the college loan bubble:

    For college grads, it gets even worse. Not only can they not find a job, but they are putting financial pressure on their parents, who will now have to continue providing a home, food, and utilities until such time that their boomerang kid can get some meaningful work and contribute financially to the household. On top of that, they are debt laden with an average debt of over $23,000 once they graduate college. Considering that up until the recession, the average graduate made just $30,000 per year in an entry level position, and the fact that those types of jobs are no few and far between, we can see the potential for a new round of debt-defaults in the near future.

    Can anyone say College Loan and Education Bubble?

    The theory of “biflation,” one that we have presented to our readers in the past, suggests that there is a possibility of price deflation in debt based assets such as homes, and price inflation in essential goods such as food and energy. We’d mark college education as a debt-based asset, because these days most students depend on loans to pay costly tuition fees.This, like home prices, is simply not sustainable.The very same bubble that was created by easy Fed lending policies has led to a similar situation in college eduction. As credit became loose, and everyone with a pulse applied for a college loan and got one, the price of college eduction rose sharply.

    It’s safe to say that we are now seeing the college education bubble collapse right before our eyes.

    That $270 billion is only the beginning. Remember, there are simply no jobs out there to offset these loans, so we can fully expect that the majority of these college loans will never be repaid (at least not by those who borrowed the money). The borrowers simply have no means of repaying them.

    This is yet another too-big-to-fail that will end up coming out of the pockets of the US taxpayer.


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          • Sure this is kind of silly playing the “first” game, but in a way it’s ok to break things up with a little silliness now and then. We talk serious stuff on these posts all the time, and while Mac is doing a tremendous good work bringing us this information, I figure a little levity doesn’t hurt.

          • Ready Made Resources Lost my Business again. I go to walMart. I forgot so does Flo Jak.

            • why, Pray tell!

        • You are just s simple, mindless, waste of space. First THAT.

          • If it bothers you that much just ignore him. Don’t give him any thumbs up + or -. Eventually he will tire of the game. But all you’re doing is stoking the fire. Let it go Bud.

          • It’s firsted!

          • If I give sombody a piece of my mind, I make sure its not too big of a piece because I don’t have much to spare!

            • If I give someone a piece of my mind,I give them as much as they deserve.

        • kevin, which are you more proud of, your “first record” or your bronze medal from last years special olympics?

          • Now thats funny!! Actually, Ive been winning the silver for 20 years brother!


        • STUPID CHILD.

        • You need to get a girlfriend.

      2. LOL…Kevin… MATURE as always… !!!.

      3. Congratulations Kevin,

        The early bird catches the worm.

        • The fisherman that gets to the lake early, catches the fish! *kevin yells* I GOT 2 ALLREADY!

          • Just don’t go noodling on the Red River. Some of those big cats weigh more than the fishermen! 🙂

        • My tastes don’t include worms. But each to his own I suppose. 🙂

        • This phrase focuses on the good fortune of the bird and not at all on the misfortune of the worm. We need government intervention here.

      4. Life is sometimes like a game of chess. You have to plan many moves in advance. This, I believe, is one of those moves. The government knows how much debt there is and it’s staggering. They put out the lure that if you go to college and get a degree you will get a great job with great pay. But there next move was to drive business and jobs overseas and erode the foundation of our financial and economic sector. There next move was to make it impossible for a bankruptcy court to wipe away that debt. The student is stuck with it and cannot possible pay it back. So, what happens next. . . Checkmate. They are not getting the great jobs, not buying the great house, not spending like a drunken sailor boosting the economy, not saving. And this is just one of the many plans made by our government to cause the demise of this once great nation.

        • absolutely SilverFox

          this financial meltdown is PLANNED
          it is being MANAGED
          it IS DELIBERATE

          and the worst is yet to come

          • Amen Satori, It is planned managed and deliberate. I believe it’s all to pave the way for the NWO. The elites must crush all powerful nations at the same time to enact their plans. All nations must be begging for mercy or it won’t work and world dominance will fail. This is why America, Europe and Asia are all failing at the same time. If for example we were solid as a rock and the world elites wanted all countries forced into the NWO it wouldn’t work if we didn’t join. Then there would be some place for the slaves of the world to go for freedom, and they can’t have that.

            • Silver Fox and Satori, I believe you both are 100% right. There’s not much we can do about it either except prepare as if it would all fall apart tomorrow.

          • The 70’s oil rationing
            The 70’s recession
            The dot com bubble
            The housing bubble
            The 07/08 collapse
            The o7/08 bailouts
            The stimulus bailouts
            The student loan debacle

            on and on it goes..

            and yet few realize this was all planned ..years ago.

            and it will continue..

            all to favor the central banks and their minions from the federal of england

            jpmorgan chase
            etc etc..

            wake up..

            these assholes have financially engineered weapons of financial mass destruction upon the entire free world..

            and worse of all

            our so called elected morons have co opted this all along

            keep on voting ..



            • Wake up indeed Possee, wake up indeed. It’s mind boggling isn’t it? Where are the rest of us? Are they that stupid or are they truly asleep? Even my wife, who I dare to say is of above average intelligence is passive and thinks everything will be ok. True you could go on and on. All the manipulations of the metals. The outright theft like MF Global. It’s insane. When the mass truly wake up it will be a force to be reckoned with that will be equal to fast moving water, avalanches, wild fire, truly a volcanic eruption.

          • And let’s point out what age group got targeted for this deliberate, managed, crisis in the making…older 30s and 40s would have never fallen for this line of BS from the college recruiters and loan officers.

            • So for those in their 20’s the military offers the only way to escape a lifetime as a debt slave. The military will complete any indoctrination gaps their schooling overlooked = no effective resistance.

              For those in their 30’s and forties – the property bust has prevented them from from mounting an effective resistance.

              The baby boomers are too busy watching their pensions swirling down the toilet. No effective resistance.

              The elders? Anyone watched that British sitcom “Dad’s army recently?”

              No effective restistance from a population too concerned with putting food on the table and keeping a roof over their loved one’s heads.

              Every step towards self-sufficiency is an active act of rebellion in the current phase of the NWO march. Hint – get the young uns teamed up with a golden oldie that remembers how people survived the depression while they are still alive to pass the knowledge on. Far more long term value than a “college degree” for most, especially if they can learn a traditional trade wth hand tools.

            • @lonelonmum,

              Actually a number of years in the military and several deployments woke me up to the bullshit and empire that the US has become. In my experience, people generally become more responsible and self reliant after a term of service as opposed to several aimless years at college following high school.

        • And while they are at it, they can brainwash the kids with their mind numbing socialist blather and make them think that all rich people are evil, preach their moral relativism, and that the government is the cure to all societal problems.

        • Perhaps there is another option. This will not be seen as positive for the United States, but then when all the decks are stacked against you any option which is available will have more appeal than it would otherwise.

          For those people unable to get a job using their new skills and education, unable to pay back their loans, perhaps consider leaving the country. Move to a jurisdiction where you are able to benefit from your education. Relinquish citizenship and ignore the debts.

          A number of countries are already showing they will not enforce United States laws as they are deemed unenforceable for so many different reasons.

          This is a lose-lose scenario for the United States. Where is the leadership on this issue? Perhaps TPTB think the lowly people have no choices and will comply. I think TPTB is in for an awakening. If my thoughts are wrong I welcome an explanation showing how.

          • Relinquishing citizenship is hard to do now, and I’m pretty sure it puts you on the terrorist list. No, a CIA bullet is not headed for you for simply skipping town with a head full of knowledge of how to read X-rays, but if a lot of people start to do it, the US will have to make an example of some. They could also extradite you treating the ducking out of the US owing your student loans as some kind of financial crime. Lastly, I think the law now is, you can’t leave the US if you owe a bunch of money. Sure you can *sneak* out, but the net is becoming steadily finer-meshed.

            • What doesn’t get a Person put on a list, DT?

              They are not able to extradite anyone at this point.

              And even though 40,000 plus new laws are on the books, I have yet to hear of anyone on any of the ex-patriot blogs mentioning you can’t leave the US if you owe a bunch of money. With 40,000 plus new laws though, it’s difficult to be certain of anything.

              I like this photo, perhaps more People need to see it:


            • The young in Ireland are taking this option again. A whole generation’s brightest and best are emigrating from the Celtic Tiger. Their preferred destination seems to be Australia, New Zealand and Singapore.

          • @QuietFox,

            I think there is yet one more option available to those who have these loans. Eventually the central government will collapse of it’s own weight and when this does, all debts will be uncollectable. Truth be told, if everyone just stopped paying these student loans, what would be the options available to the government? Forced conscription? Slave labor camps? While this may occur at some point, at present it is not likely. When they start sending defaulting debtors to prison camps, there will be far more than just former students occupying them.

            I think if I was a student who could qualify for one of these loans, I would take out the maximum amount, buy a weapon, ammo, food, and PMs, and use what is left to make minimum payments for a year or so after graduation. My belief is that the time is running out to get prepared and having a weapon and food is more important than the degree which one would get from one of these institutions. PMs can be used to pay off the whole loan when hyperinflation hits. In the old days, when one borrowed from a private lender who put up depositors money to fund the loan, this kind of thinking would be evil. Now that our benevolent Uncle Sam at the behest of His Majesty Obama has taken over the student loan industry and Uncle Ben just conjures the money out of electrons, you are not screwing some depositors out of their money; instead you are sticking it to our benevolent government where it counts. If you are dumb enough to leave your money in a bank where it gets you nothing in return then you deserve to lose it anyway when the system collapses.

        • We’ve built up this perception that college is the only way to get a “great” job. However, if you come out with $200k in debt, you may as well start working right out of high school.

          May even be a better bet to take out a $50k loan and start your own business.

          The government continues to guarantee the loans so colleges continue to raise tuition. The risk is all going on the students. To go along with Big Oil, Big Pharma and Big Tobacco, we’ll be talking about Big Education.

          • I get to see them all, all the college students in the South Central Florida area that is. A family member owns a small shop located in an area surrounded by no less than four major college/university institutions. I frequently run the store for them in the early morning and afternoon hours when business is slower.

            There are numerous students who graduated last year who are back again this year. They couldn’t find a job with their BS or BA, so they are back again this year trying to get their Master’s Degree. They think that this will qualify them for one of those now elusive $100K ‘entry level’ jobs. Of course they are adding much more in student loans to the loans that they already have outstanding. So sad.

            BS = bull shit. MS = more shit. PHD = piled higher and deeper.

            God Bless & good luck to all.

        • For God’s sake, don’t use “there” for “their”. Otherwise, you’ll never get a job!

      5. I’ve somewhat given up on trying to tell my friends/family that they should prepare. Partly because my approach is not that great since its more doom and gloom. I’ve decided to instead, provide them with factual data that brings cause for concern and let them make their own decisions.

        Do you guys have links to strong articles from reputable sites showing the facts? Mainstream is best since people who are not awake tend to disregard Prepper sites as nutsy. I feel like if we’re going to try and talk sense into them, might as well be on their own language.

        • Is Jeff Rense main stream 😉
          Actually, good luck convincing anyone that believes they must get their news only from MSM. You first have to open their eyes to the fact that they are being lied to. My family rolled their collective eyes at Zeitgeist and I truly wanted to forward the new movie “Thrive” to all my friends and family but I’m sure it will get the same reaction. I’ve given up.

        • Ginger

          Forget the sheep..

          they are too numerous to convert and “comfortably numb” to accept the facts

          I have lost many lifelong friends in discussions and cookouts..

          screw em



          • Possee,

            Its called “normalcy bias” and we all have it to some extent. Its just that some people don’t have a fatal case of it!

            • amen to that

              Then again..I am not of the norm..nor are any of us here..

              At least we have awoke from the slumber and are wiping the sleep from our eyes..

              Pity those who are still in REM..


        • Ginger,

          I understand your frustration and difficulty trying to reason with you friends/family.
          Every morning I read Drudge Report, the Daily Crux (financial and economic news) and here of course for news. I forward links with news that might awaken them.

          If you see a good you tube video on a website your friends won’t even look at, then forward the link directly through you tube.

          Good luck!
          KY Mom

        • Here’s a super short bit, Ginger:

          And a short easy to understand video:

          Finally, Quantitative Easing Fully Explained

          You could ask them what they think of this chart, especially if they have a lot of personal debt:

          If they own a lot of bonds you might mention this chart:

          Or, some deeper thinking:

          “The central planning of the state and the concomitant destruction of private-property rights destroy the independent businessman and replace him with a parasitic impostor, the political entrepreneur, who succeeds by special privilege rather than by economic production.”

          Oh wait! You said from mainstream sources, hahaha, there aren’t any, they are all owned by a small group of People who want to control the message the masses hear and see.

          It’s called breaking free of the Matrix, some do, some won’t, and most refuse to consider anything else but the status quo. The only thing that will wake them up is a kick in their fat bottom from a military boot.

        • Here’s the thing. The majority of people are still “okay”. Even if unemployment is 20%, that still leaves 80% who just want to earn some money to get by. I don’t think there will be an “awakening” of the masses until a majority of them are affected, unfortunately.

        • Perhaps this is what you’re looking for, Ginger?

          A fairly short and kind of mild FOX Business video interview with Gerald Celente:

          He has an impressive track record.

        • Ginger I think you’re wasting precious time and energy trying to ‘wake up’ the sheep. If you want fact-based info, another site is Shadowstats (fee based). The tv-based “news” stations are totally worthless from bias or black-outs so don’t bother.

          Once you’ve tried to help and you get nowhere, move on. But maybe it might be best to tell them not to come-knocking when TSHTF because your plans and stockpiles are only for those who contribute.

        • I have had the same problem Ginger, and I’m sure many of us have. What I have done is share those MSM articles that I have already read and determined to have valuable content, but I always caution that they have to be very skeptical about what they believe. I used to use Reuters a lot, because even though they have a huge bias, they still put out quite a bit of hard data. But alas, I have been banned from commenting there, since I couldn’t help but point out their biases when they were particularly obvious. (sigh)

          However, this approach has brought over my cousin, my parents and one of my brothers. My cousin was outraged when I first explained to her the totally MSM nature of NPR, but now she sees it.

          How do you eat an elephant? One bite at a time.

        • Ginger…If they still watch tv, try to get them to view RT. The Max Keiser Report is a good one on there. OTH if they haven’t been exposed to anything but MSM, they may think he’s a little off the wall.

      6. No problem for the gov. The people that owe……not so good. Is this job market still BULLISH! When’s the beer summit for hoodies?

      7. Hasn’t anyone ever heard of community college? At least go there for the first 2 years and live at home.

        These kids lived high off the hog in luxury apartments, going on big expensive trips, eating out, spending too much money on clothing and they were educated in state of the art facilities by tenured professors with bloated salaries and lifetime pensions.

        Now they and their parents are broke thanks to the evil that resides in Washington DC.

        Given that most Universities are wildly progressive & liberal, the easy availability of student loans was just part of the plan to turn out hundreds of thousands of good little communists and activists.

        • Community college is a great idea. More than a few high school grads have no clue what they want to do after college, but still attend with a huge loan attached as an anchor. If a HS grad attends a community college instead, they can take some basic classes that can be applied to any follow-on major, and get some idea of what they want to do at the same time.

          • Sounds like more of the same ole same ole, Eagle71.

            I imagine there’s lots of student debt among community college students too. Big debt or small debt, a Person without a job cannot pay the loan back, same for those living paycheck to paycheck. It’s also another reason why inflation is such a bad thing, it works to prevent People from climbing out of debt.

            MIT offers courses for Free online.
            Many skills can be learned on the internet for Free.
            With both a Person can get some idea of what they want to do – without debt – even small debt.

          • I was in CC in early 90’s and was the only person I knew who was paying myself and paying as I went. The US gooberment skools prepare you for nothing other than more skool (and do a poor job of that).

          • But there are no fraternities or sororities at community colleges and the campus life boring. I think for the age group, an atmosphere where one can party, drink, and simply f*** off is one well worth the incurred dept. One of the only things I remember from college, is getting shot faced nightly, and I hardly even remember that!!

          • Eagle 71- Good plan going to local community college to earn an Associate Degree that IS TRANSFERABLE to a university. That is what one of my girls did. Worked great money-wise. 2nd daughter said the heck with college and quit after one semester. Now the quiter is married to a mufti-millionare and the Art & Science Degree is married to a guy who is an RN. Who was smarter? Guess.

            Say what ya want there is always a need for auto mechanics, plumbers, electricians, nurses, firemen, policemen, garbage men and postmen. Pay is maybe less on the long run, but less responsibility, maybe?

        • My 3 kids are the ones who woke me up..

          They see the sheep amongst them.

          Too bad for those who choose not to see the endgame.

          Those that do.. will persevere!


        • Good point Mr. B. Went thru this with step daughter about four years ago. She had to go to the big city and the Artsy Fartsy College with nice apartments and swimming pool etc. etc. Living the Cadillac lifestyle; right out of a rural High School, on a Volkswagen budget. Student loans out the yeng yang and partying away her $5.00 per hour waitress funds. Two years and $120,000 later, quit school and living out of her car while sleeping on friends couches. Didn’t want to come home and here me say I told you so. Now working two jobs as a waitress just to make payments on car and insurance and rent. Not paid one dime towards principal on student loan. A prime candidate for joining the “Occupy Crowd”. Most of those kids are still living off parents though. We won’t let her live off us for free. You don’t work, you don’t eat. I told her mother, when she wanted her to cosign the student loan, “it will be the biggest mistake you have ever made”. If you sign it you will be stuck paying for it because I won’t and it won’t come out of our budget. She knew I was more than likely right and she didn’t want to have to work a second job to make the payments, so she didn’t sign. Sometimes Parents have to make the harsh decisions and put their foot down, and say “NO”! I wonder how many parents are in a financial bind now and wish they would have said NO to a four year degree at their expense.

          • I’m with ya “don’t-tread”:

            Same basic problem except for a beautiful grand daughter who would suffer “not living off us for free” if we did not pony up and pay the bills at home. I think those of us who did everything right in our working years will end up on the streets also.

            Those at fault are too far out of reach for payback.

        • I know a couple of kids in college, one out of state. He came home over Christmas and asked his parents to cosign a student loan, even though he is on a full ride in ROTC. The stepfather was obviously opposed, and mom was cool to the idea because the parents have bitten off more than they can chew themselves. The other is ecstatic that he has a scholership to a good school and is happy to work part time in retail for playmoney. Not hard to see who will have the better outcome.

      8. And yet they still troll for suckers. I pass a billboard everyday on my way to work that says “3.2 million healthcare jobs will be added by 2018.” No one realizes that the patients will largely not be paying for the healthcare. It will just amount to government (me and you) taking on the costs for the healthcare and the costs for defaulting on the loans. It’s like a snake eating itself from the end of its tail. Eventually it will bite off its own head.

        • EVERY doctor I know is working on their escape plan. Good luck finding a doctor when Obamacare hits full stride. NOBODY with the requisite intellect and ethics will put up with THAT micromanaged, underpaid, Culture of Death bullsh*t. The medical schools will be scraping the bottom of the barrel at MacDonalds and Community Colleges to recruit medical students. You’ll find out very soon what kind of “barefoot doctor” medical care you are “entitled” to have.

      9. I don’t think the Gov should pay for health care, BUT they sure could go a long way if colledge was free for American citizens If you wonder why other countries kill us in education now its because they can go to college without having to put themselves in debt for life!or the parents. I’ve had two sons in college I know!

        • geo-lithic – If it was free for everyone what good would it do? Who’s paying for this free education? America graduates stupid students. At this point in their lives what good will a “free” education do them? I have two students in college also. One has a full ride and the other is paying her own way as she can. You need to rethink you’re comment maybe… Not every kid needs college. For most it a damn waste of time.

          • TANSTAAFL, you fool.

        • We already have free schools, its called the public school system, and it sucks! I also have 2 kids, one graduates from law school in 6 weeks, looking like crazy for a job, can’t be a lawyer till she takes the bar. The other is in the Med. field, and both realize they will probably never do better than their old man. Yep, I have a degree too, but that didn’t make me a wealthy man. I still believe in old fashioned hard work and you pay for what you get, but it may not be worth what you paid for it.

          Oh and BTW, that free schooling ain’t free either if you know what I mean.

        • Making something free does not make it better, it usually makes it worse. Once something is free, it has no value. Higher education should always be valued.

          The really smart and succesful foriegners went to college over here, and somebody paid for it.

        • Free college would be worth every dime!

      10. It’s worse than you think. Student loans cannot be erased by bankruptcy. Since the gov’t backs them, they will come for their pound of flesh in the form of national service, so anyone who can’t pay of their loan will become an indentured servant to the gov’t.

        • Davidus

          And the threat of indentured servitude is what makes me save a few pm’s for my 7 year old each month!

          I’m not busting a gut to raise a slave! He’s learning the skills to survive what’s to come (- all little boys like crafts, foraging, scratch cooking, animal husbandry, gardening etc given the opportunity.) Look at how popular the scouts used to be before they sanitised it beyond all recognition.

          IF the opportunity of further education is there – to help him survive in a harsh world is there, I’d like him to take it. If the pm’s haven’t been needed to buy food in a decade that is, I also have NO issue working 2 jobs to pay for it.

          He’ll enter college as a freeman and leave with useful knowledge as a freeman too.

          If I’m wrong about what’s to come the kid gets PM’s cashed in for college – if I’m right we have preps to survive. Sadly not many of my fellow Mum’s think the same way.

      11. The tragedy of the student loan bubbles is not the amount borrowed, but the penalties and compounding interest that accrue make it impossible to get caught up once a borrower gets behind. In any other industry this usury would be illegal, but like everything else where the government is involved they do not play by the rules.

        I used to be a mortgage broker and know from experience it is better for one’s credit to not pay them at all than to pay them behind because once they go to collection they eventually drop off the credit report if no activity is reported.

        They can garnish up to 15% of one’s wages if they find out where you work, but the only way they have of doing so is if you are your family tells them or if one lists their employer on a credit application.

        One should attempt to pay their debts in a timely manner, but even if they cannot it does not have to prevent them from getting a job, buying a car or house, etc. Everyone needs a place to live and most people need to drive to work so in the end they prioritize as necessary to provide for their families.

      12. I say if they can’t pay their loans on time, take their iPhones away.

        • At the point of a gun, eh Bill?

          That would solve nothing and make everything much worse.

          Far better if the lenders take a hit, that’s what capitalism used to be all about. Loans wouldn’t be given out so freely like candy if that were the case.

      13. You can’t truly default on your student loans. Even if you go bankrupt your student loan remains on the books. Much like the IRS they can go after your assets and garnishee your wages. If you let enough late charges and interest accumulate you can end up with not having enough money to live on once the government is done.

        • “You can’t truly default on your student loans.”

          I can just imagine thousands of People working in the black market while laughing at that not-quite-true statement.

          But for those who readily obey and submit, that statement is an iron clad rule, no doubt.

      14. Easy to get the money back. just draft them into military sevice. Take what pay they get and pay back the loan.

        • The king crazy slave army, bringing unfreedom everywhere?

          And what would happen to those who refuse to submit and obey? … The king crazy slave worker prison-industrial complex expansion?

          And just who pays for All this and out of what pile of money is it drawn from?

          Dot Dot Dot

      15. The only way I know to get your student load forgiven is to enlist in the military for 4 years. Bankruptcy does not clear off studet loans.

        I am not sure if this still applies anymore maybe someone still in can check that out.

      16. If a student loan crashes to the ground in the forrest..would any one hear it?

        come out of a teaching world into reality with nothing in this country to provide a job to pay that loan back..I’d say we have a much larger problem at hand than some student loans..we have an insolvent country, that in its own government cant keep its books straight..and they want to crucify students that were doing nothing but what we have all been telling our kids since they started hard on your education and go to college, you’ll make a great living/..

        well with a government that pushes all the factories and companies, and the intelligent thinking individuals to take their ball and go to where they can make money..this becomes a symptom of a larger disease

        • remember its 20% or more jobs are just out there to help these people to pay back what they have sure 95% or more of these people would be happy to have a job and the ability to pay this loan back.

      17. No , I dont owe one red cent to any teaching establishment.

      18. Well I guess the cost of college is going to deflate now. If you think about it up until we had college loans the cost of college was about flat from 1910 to 1960.

        The liberal silver pony tails thought this one up too. They always look at ways to enslave the masses. Proof that you don’t need to have a degree is that most millionaires I know, don’t gave a degree. If I recall billionaires like Bill Gates and Steve Job’s didn’t have degrees either.

        I know of one case where the silver pony tails actually flunked someone of laughed at his theises for next day delivery. Wasn’t that the founder of FedEx??

        I won’t even consider hiring someone with a MBA or PHD because it take a whole semester to teach them where the bathroon is.

        • In USA, too many equate “educated” with smart.

      19. Yep, graduated with government loan debt in 2011 and had to do a deferment on it too. Right now, I am doing an one-year (actually, 8 months) teaching assistant-ship overseas to give me some experience and hopefully an upper edge when I return to the U.S. this summer. (The program is highly disorganized, needs major improvement, the national govn’t is in a financial crisis and the pay is minimum wage for the country, but most people only work 12 hours.) I want to go to grad school as my ideal career requires at least a master’s to fully practice, but faced with $30k or more estimates for tuition and living expenses is kind of killing me. For now I have my second bachelors (B.A. in Spanish) to hold me over and pay down some of my student loan debt until grad school.

        One thing that is killing me in despite of all that I am facing is that there is a disconnect between what my parents assumptions are (aka how quickly to find a job, get establish, and how they want me to be financially independent like they were when they graduated from college) and what is really going on in the world. The worst part is if I don’t find a job in 60 days after I come home from my assistant ship, I’ll be kick out of the house! (Thanks to my sister’s situation of job hunting and odd jobs for a year, etc.; I get punished because she didn’t prepared herself and I did. I have two bachelors in much need fields.)

        So, basically I’m screwed for a while and caught in a lovely catch-22 or other similar situations.

        Sorry for the rant; I just had to get some hairs off my chest, that’s all.

        Govn’t Slave No. 1

        P.S. One of the first things I am going to do once I get income that’s above my essential needs, is prep, prep, prep like there’s no tomorrow (even if it’s $10 a month or pay period).

        • Why come back?

          Also, you’ve identified a problem, is there a need for a solution? Can you provide it?

          Are you confusing your wants with your needs?

          … Just thinking out loud.

        • Govn’t Slave No. 1
          Go to Asia or Russia. Teach there. Try to get your degree on a part time studies basis. Build a network. Get a local employer intrested in your skills and go back to the US later, when you have made some money and with all the experience collected. You don`t want to queue up with all the other skilled and qualified people without a track of record, do you?

      20. Live within your means, never be in debt, and by husbanding your money you can always lay it out well. But when you get in debt you become a slave. Therefore I say to you never involve yourself in debt, and become no man’s surety. If your friend is in distress, aid him if you have the means to spare. If he fails to be able to return it, it is only so much lost.
        ~Andrew Jackson

      21. That is a lot of potential voters. I predict between now and November the admistration will hint or outright say that they are considering forgiving some of those loans. Guess who gets to pay for all the Obama ‘free stuff”?

      22. You load 16 tons, and what do you get?
        Another day older and deeper in debt.
        St. Peter don’t you call me ’cause I can’t go.
        I owe my soul to the company store.
        ~Merle Travis
        ~From song Sixteen Tons.

      23. Slight was the thing I bought,
        Small was the debt I thought,
        Poor was the loan at best-
        God! but the interest!
        ~Paul Laurence Dunbar
        ~The Debt.

      24. Boy am I glad I paid off my student loans, but boy was I a huge sucker for getting suckered into the college scam in the first place.

        College held me back to a similar degree that I’d have been if I’d decided to become a meth-head for a decade. The only difference is I still have my teeth.

        When you’re a student you can only get the most crappy jobs, you have to borrow to go to school, I lived in rooming houses and ate shitty poor-people food, and actually didn’t get a car driver’s license until I was 30. (I got a motorcycle license a bit earlier, when I was 24.) When I was done I found my high-tech knowledge was NOT in demand, especially since I’m white. Had to be Asian to get the “decent” pay but even then, the Asians I outworked weren’t being paid stellar wages, just a few bux an hour more than I was (because of their race, my supervisor explained patiently to me).

        I’d have been FAR better off to go for something useful, here are three examples:

        (1) Art. An art degree would have been a natch for me, since while not talented as such, I was pushed in that direction for much of my childhood so I had the “talent” that comes from sheer hours messin’ with art. From caricature-drawing to murals to signs, shop window lettering, etc. etc. etc., I’d have had loads of opportunities to work at pleasant jobs that are decently paid, while in college and afterward.

        (2) Music. Now here’s what I was *not* pushed at, but I can work out stuff by ear quite well, sing in tune, I do seem to have that natural kind of talent. I’m finally following up on it now. I’d not have had to study calculus and physics and stuff like that that amount to lots of homework, since the “work” would have been simply music practice. Sure there’s some stuff like remembering which is the hangy-down rest and which is the one that sits on the line like a lump, and how in the world 2/4 time is different from 4/4, or 4/2, but I can keep a beat and that seems to solve most of those problems. I’d have been able to street perform, play at weddings and parties, in nightclubs, the coffee house circuit, and all in all would have had pleasant, well-paying work in college and after.

        (3) Basket weaving. OK I’m being silly here, but really, any handiwork or craft would be far superior to high-tech. It would basically prepare one for a career selling handicrafts to stores, selling ’em at flea markets, by the side of the road, etc. Have yourself on display weaving away, or working on a pair of sandals, etc., and you have a real selling tool. Baskets, sandals, etc don’t sell for much, but the materials are very cheap to free. Some types of baskets are in demand, too.

        In all three of these more practical examples, my race would have been a minor factor, if one at all. High tech is a fine hobby, and you can learn it from tons of books and materials online at at your library, you can do high-tech hobbies like ham radio, robotics, amateur scientific research, etc. Great fun and I do not encourage an ignorance of high-tech. Just don’t make the mistake of trying to turn a hobby into a career. Now back to your music lessons or sketching practice, everyone.

        • Lucky you. I can’t carry a tune in a bucket.

      25. There was Coast to coast show recently about the student loan time bomb and one caller was retired and his only income was social security and the governemnt was garnishing 50% for a student loan that he took 15 years ago. Now that’s nasty.

      26. You know what they should be offering a degree in and something that we all could use? How about Survival and Prepping for one thing?. 50 years ago I could see someone offering degrees in civil defense and survival. Now, people are offered degrees that could very well prove to be totally useless after SHTF. Survival can be extremely complex, much more so than many college degrees offer today such as Drama or Theatre or other degrees that might get “temporary” employment until SHTF, then after that it will mean nothing.

        Survival and preppering takes much organization skills, planning, clever inventive thinking, commitment and hard work, economizing money, AND it actually has extreme value someday. I can tell you someone that someone learns how to prep sure as hell would make a much desired employee at some firm that wants to keep costs down and be efficient as possible.

        How about some college degrees that actually have a curriculum that has to do with adavnced studies in survival and being prepared. Maybe this could run with some Geography major or minor that would have the study in world politics and economics somehow thrown in their.

        In other words, if you have to go into debt for your education, at least do it with some skills that you will be able to use before SHTF and during and after it.

        • “How about some college degrees that actually have a curriculum that has to do with adavnced studies in survival and being prepared.”

          Hahaha, ain’t that wHAt school was supposed to be, adavnced studies in survival and being prepared?

          Also, why pay for know how that’s free, a.k.a. SHTFPLAN 101.

          • @ clark. It sure was, yet somewhere college went off to the hills. While we can learn much here, practical practice is something that can be taught in the classroom to all aspects of life. I personally spent 1 year in a first aid class and earned college credit for it. I could not have learned this training over the internet. There are some degrees such as Geography, Future Studies, and others that prep people on what to look for in regards to disasters and political upheavals.

            Wouldn’t it be wonderful though to actually get training in school that would much better prepare someone for when the world collapses, but until that time have a degree to find work with it? Many employers hire people special trained in the armed forces because of the discipline and being dependable. Someone trained to conserve what they have, be inventive, be resourceful and conservative with what they have to work with, etc, that goes along the prepper-survivalist motto, would sure be someone that an employer would look at as a very good prospect to hire. This could be tied into another similar degree.

            This was just a thought since most of these degrees that are offered now will not be of much use after the world implodes. Other than science degrees, health, and other practical training.

            • Be informed wrote, “I personally spent 1 year in a first aid class and earned college credit for it. I could not have learned this training over the internet.”

              I doubt that, but if it is true, there is an opportunity for someone to put that on the internet and benefit from doing so. Unless it was only a matter of having a warm body to practice on? Volunteers are everywhere, for a price.

              Be informed wrote, “would sure be someone that an employer would look at as a very good prospect to hire.”

              I suppose so, but my approach is more along the lines of do it yourself and cut out the middle man. Entrepreneurial and all that. Of course many successful People say if you go that route, don’t do it in the unitedstate. And that’s sad but true for the most part.

              An example that sticks out in my mind is Arnold Schwarzenegger saying he couldn’t start his brick laying business (which gave him his start) in the current regulatory climate of the unitedstate. There’s lots of similar examples out there.

      27. Why does this writer think this: “In other words at least $270 billion in student loans are no longer current.

        follows from this:

        .. fully 27% of all outstanding collage loans are now 30 days or more past due:” ?

        It could be $270,000,000,000 that is in question, depending on whether the past due people owe on average more than or less than the paid-up folks.

        I’ve got no disagreement on the problem, though. This money will eventually be put on the tab of the taxpayers; I don’t care what you say about “can not be written off in bankruptcy” – that is true, but if the $120,000 loan to the ex-student of underwater basketweaving can’t be paid off by the guy working his butt of weaving baskets underwater, well, then it won’t. The bank that lent it can’t lose, as they were backed up by, yeah, you guessed it, you (if you are a taxpayer). The money was already spent by the ex-student during his fun party-filled years at the State University getting laid much more than you or me.
        Hey, who’s the sucker here?

      28. That got totally messed up due to my greater-than and less-than signs (server thought it was html?)

        It should read “could be less than or could be greater than $470,000,000,000” The rest stands.

        • Dang! “could be less than or could be greater than $270,000,000,000”, not $470,000,000,000!

          3rd time’s a charm, right?

      29. This is a double whammy for the parents. Many of these school loans were approved with the parents as co-signers.They will be on the hook for the loans plus keeping the kids fed and housed.The corp gov is responsible for this fiasco. If they wouldn’t have gotten involved in giving out these loans tuition would be nowhere this high as a regular bank would have determined the risk of default to cover their ass. When the gov (taxpayer) guaranteed the loans they no longer cared about the risk since it isn’t on their back anymore. The colleges are free to raise the tuition as high as they like since they know the gov will give out the loans to the kids. When this bubble bursts the colleges and their overpaid professors will be out of business or be taking huge pay cuts. Once again the fed corp has duped the people into a scam to take their wealth. Kids just out of high school should take up a trade apprenticeship or attend a local technical school and forget about those overpaid paper pushing jobs that they think are still out there.

      30. i see a part of this failure regarding student loans as being the fault of parents who went ahead and co-signed for their kids…and also parents who failed to teach their highschool kids how to be self reliant and fiscally sound. then of course, a lot of these idiot college kids took advantage of idiot parents too and knew they were fixing to have several years of fun at someone elses’ expense.are these parents and college grads shocked regarding the outcome of these loans- hell no! what are they gonna do for not having jobs and not paying their student loans…they are just gonna keep doing what they have been doing as long as they can…mom and dads basement, and getting all they can without having to pay up for it. and guess what parents…your government knew all about it and they really dont give a sh$#…but they will hound you to hell to get their money.

      31. when i was in college and got a 4 year degree I could of stayed in college and got a PhD but knew the job vs the time does not weigh up. I was not the smartest person but had a lot of common sense and staying in school that long did not make any sense. so if these kids decide to go the long way, they have to pay it back and are trying to now get a free ride. the liberals will say they were tricked into these loans which is a complete lie, they knew the cost and made the decision. Man up people and take responsibility thats life!!! Im still paying on mine, if your smart enough to get thru school your smart enough to understand what the hell your doing. my god deadbeats these days. too much pride for some to work at a low paying job till something opens up

        • eric wrote, “they knew the cost and made the decision”

          That’s debatable. Oh-so-very.

          eric wrote, “if your smart enough to get thru school your smart enough to understand what the hell your doing”

          Not only is that debatable as well, it’s funny too.

          I think perhaps you missed the part about the effects from inflation, and some of the comments above describing how the debt is a trap?

      32. Industry needs engineers and technical help … my guess is we handed student loans out for mostly non marketable skills. Just another “oh well.”

        • Pernell Foster, there’s a lot of degrees in the engineering and tech fields being given out that are not worth the paper they are written on,… or so say some employers and graduates with those degrees.

          I worked along side a few, they were not happy about it.

          I seem to recall reading some stuff from an engineering graduate discussing how the degree wasn’t needed to do the work, but I didn’t save the link.

          For the technical degree, one guy comes to mind with experience with that, James Altucher, he has a nice blog.

          • Indeed. A lot of dumbshits with engineering degrees. A lot of really sharp people too, but unless they are Asian or Indian, noooo jobs for them!

            The difference is, white kids have a much greater chance of growing up in a culture where it’s A-OK to build go-karts, treehouses, forts, etc. It’s fine to fix your own bicycle, have a BB gun, design and build your own skateboard ramp and then proceed to go out and stub your toes skateboarding on the thing (barefoot, naturally). It’s the culture that gave us Henry Ford and the Wright Brothers and Thomas Edison. Who’s the most famous “technical” Indian? Ramanujan, who sat and did theoretical math, mostly I think for the pretty shapes his equations made on paper, and did nothing physical, even had his mother peel fruit for him. In Asian culture, it’s “shameful” to do physical work, to work with your hands. White kids have a much greater chance of growing up and becoming really good engineers (we’re also over-represented in “combat arms” jobs in the military, go figure) but the bias against hiring whites is strong.

            America needs engineers, but is importing them and if you are native-born, forget it. The best advice I have is, start your own business out of your garage or something. Oh, and you don’t need a degree, really. It’s nice but, “real” engineers tend to be ahead of what colleges teach. The main thing is, design stuff, build stuff, solve problems, and youse an engineer.

            • Lol, design stuff, build stuff, solve problems… sounds like architecture to me ay.
              I was just talking to this guy who went to my hs and went on to engineering. From what i heard, engineering at university sounds very theory based and ‘by the book’ formulas etc and that was always my stereotype view of engineering.


        Dear American liberals, leftists, social progressives, socialists, Marxists and Obama supporters, et al: We have stuck together since the late 1950’s for the sake of the kids, but the whole of this latest election process has made me realize that I want a divorce. I know we tolerated each other for many years for the sake of future generations, but sadly, this relationship has clearly run its course.

        Our two ideological sides of America cannot and will not ever agree on what is right for us all, so let’s just end it on friendly terms. We can smile and chalk it up to irreconcilable differences and go our own way.

        Here is a model separation agreement:
        –Our two groups can equitably divide up the country by landmass each taking a similar portion. That will be the difficult part, but I am sure our two sides can come to a friendly agreement. After that, it should be relatively easy! Our respective representatives can effortlessly divide other assets since both sides have such distinct and disparate tastes.

        –We don’t like redistributive taxes so you can keep them.
        –You are welcome to the liberal judges and the ACLU.
        –Since you hate guns and war, we’ll take our firearms, the cops, the NRA and the military.
        –We’ll take the nasty, smelly oil industry and you can go with wind, solar and biodiesel.
        –You can keep Oprah, Michael Moore and Rosie O’Donnell. You are, however, responsible for finding a bio-diesel vehicle big enough to move all three of them.

        –We’ll keep capitalism, greedy corporations, pharmaceutical companies, Wal-Mart and Wall Street.
        –You can have your beloved lifelong welfare dwellers, food stamps, homeless, homeboys, hippies, druggies and illegal aliens.
        –We’ll keep the hot Alaskan hockey moms, greedy CEO’s and rednecks.
        –We’ll keep the Bibles and give you NBC and Hollywood.

        –You can make nice with Iran and Palestine and we’ll retain the right to invade and hammer places that threaten us.
        –You can have the peaceniks and war protesters. When our allies or our way of life are under assault, we’ll help provide them security.

        –We’ll keep our Judeo-Christian values.
        –You are welcome to Islam, Scientology, Humanism, political correctness and Shirley McClain. You can also have the U.N. but we will no longer be paying the bill.

        –We’ll keep the SUV’s, pickup trucks and oversized luxury cars. You can take every Volt and Leaf you can find.
        –You can give everyone healthcare if you can find any practicing doctors.
        –We’ll continue to believe healthcare is a luxury and not a right.
        –We’ll keep “The Battle Hymn of the Republic” and “The National Anthem.”
        –I’m sure you’ll be happy to substitute “Imagine”, “I’d Like to Teach the World to Sing”, “Kum Ba Ya” or “We Are the World”.

        –We’ll practice trickle-down economics and you can continue to give trickle up poverty your best shot.

        –Since it often so offends you, we’ll keep our history, our name and our flag.

        Would you agree to this? If so, please pass it along to other like-minded liberal and conservative patriots and if you do not agree, just hit delete. In the spirit of friendly parting, I’ll bet you answer which one of us will need whose help in 15 years.

        John J. Wall
        Law Student and an American

        P.S. Also, please take Ted Turner, Sean Penn, Martin & Charlie Sheen, Barbara Streisand, & ( Hanoi ) Jane Fonda with you.

        P.S.S. And you won’t have to press 1 for English when you call our country.

        Y’all Beware! Let’s Keep This Going, Maybe Some Of It Will Start Sinking In!!

        • A few problems with that, ‘DIVORCE AGREEMENT’:

          It’s written, “You can have your beloved lifelong welfare dwellers”… ya know the military and the cops fit that slot too?
          Also, with an armed populace there wouldn’t be a need for either.

          And these here ‘pharmaceutical companies’ you mention are kind of welfare-like too, plus they are soft killing a lot of People with their deadly and unnecessary drugs, not to mention many are in bed with corporations like Monsanto. … Or, do you like Monsanto and the things the ‘pharmaceutical companies’ are doing to People?
          Ever heard of Primal living? Yeesh.

          It seems like there’s really nothing wrong with the homeless, homeboys, hippies, druggies and illegal aliens if there is no welfare and everyone else is free to protect themselves. You might not like what they’re doing, but it’s their life, a.k.a. liberty. Not to mention they are all a property rights issue,… you *Do* support the notion of property rights, don’t ya?

          I don’t know for sure, but if the Alaskan hockey moms are as clueless as other kinds of sports moms, how are they something to boast about? But, again, they’re doing they’re own thing, so as long as they don’t force themselves or their ridged ideals on others, why even bring them up?

          It’s written, “we’ll retain the right to invade and hammer places that threaten us.” … ok, back to that welfare deal, how does an invasion army not equal welfare and lead to Empire?
          Maybe if you replaced the word ‘threaten’ with the word ‘attacked’ it might make a bit more sense?

          It’s written, “We’ll keep our Judeo-Christian values.” … strangely enough, right before that was “You can have the peaceniks” … oh boy, that’s confusing as all get out, weren’t Judeo-Christians supposed to follow the Prince of Peace, a.k.a. the biggest peacenik of them all?
          Wait! You mean the “other” kind of Judeo-Christians, the ones who love war and death and being oppressive,.. blessed are the warmongers, eh?
          The phrase, ‘Judeo-Christian’ seems to have two totally opposite meanings.

          I’m getting a clearer picture now, especially with “P.S.S. And you won’t have to press 1 for English when you call our country.” … it’s as if the author does not know many words spoken today and called “American-English” are actually of foreign origin, so I guess you all will have to stop using a Lot of words, maybe even rename a city or ten, a couple of States too?

          How the heck are you going to do any science work if you don’t speak or understand Latin?

          Myself, I prefer to be able to speak whatever language I dang well please, anybody who wants to tell me different can kiss my grits.

          The divorce idea seems fine in some places, in others, not-so-much, it seems like just more of the same. I’d suggest looking into the term Panarchy for a better route.

          Whew, that was funner than a night of watching TV, wasn’t it?

      34. Like the corrupt, unregulated banks, there is no risk management of these loans. I understand that many students graduate owing loans of several tens of thousands of dollars with salary prospects that will amount to no pay-off. Now, there’s a real education – the hard way. But I see these kids in school living a very high standard of living – clothing, autos, high social life, apartments, etc – and these are not rich kids – they’re ignorant living beyond their means. I would almost say that because there is such an abundance of these “targets”, that the whole things was premeditated to take advantage of them and pass the risk on to us. Say no to the bill collectors – not my debt !!!! jpl

      35. I enlisted for 4 years in the Army and spent 15 months in Iraq to get my student loans paid off. I now have an excellent credit score. It can be done.

        • Well done. Thanks for your service.

          • Ah yes, service to the bankers and their friends, the fraudsters and all for Empire!
            What a fitting comment.

            • You have mental problems. Admit it you are a coward who would never risk anything for anyone. You mistake cynicism for wisdom. Probably voted for Obama.

            • Fuck you Clark! You are a skinny young faggot with a bad blonde Justin Beiber haircut and horned rimmed glasses! 🙂

              You have a personal philosophy of failure based upon coping out because you do not have the fortitude to stick it out and make a success of yourself.

              Instead you prefer to live in your mother’s basement trying to encourage others to drop out so that you can validate your own failure.

              Misery always loves company. 🙂

            • HAHAHA, you two guys are so clueless… and immature.
              But the Empire needs People like you. Fuel to the fire.

            • Perhaps what I should have included was, you guys act as if what United States Marine Corps Major General Smedley D. Butler wrote wasn’t as true today as it was then.

              Or would you piss on him too? I wouldn’t be surprised.


        • Mclovin wrote, “spent 15 months in Iraq to get my student loans paid off.”

          Some People call that blood money.
          Others say it’s a benefit from the theft from the tax-victims, not at all unlike what the lenders of these student loans are about to receive from the tax-victims.

          So the motto is, “Be just like the bankers”???

      36. My advice to young people is to learn a trade; plumber, HVAC, electrician
        or go into the military. Have Sam pay for the Ed after their service.

        I worked 48+ hours a week to pay for my education. It is called sacrifice.

      37. I enlisted for 4 years in the Army and spent 15 months in Iraq to get my student loans paid off. I now have an excellent credit score. It can be done!

      38. Just one more crack in the dam.It’s going to go real soon at this pace.Waiting and learning as much as I can.

      39. The way that you portray it is actually a profound misconception. What we were *actually* told was that we had to go to college and take on that debt, and that we could either do that and keep our standard of living, possibly even getting better, or that we could be stuck at McDonald’s the rest of our lives.

        It wasn’t a matter of being told that we could be rich if we went to college. It was a matter of being told that we would face a life of extreme poverty if we didn’t.

        • That’s the speech I got too, so don’t feel left out

          • Perfectly said, Analesa.

            And there’s People here that spew that same line too, they’re everywhere.

            • Clark: You must be talking about me but afraid to address me directly, which is your usual MO.

              Personally,I believe strongly in a college education for those who want it, degrees, and or certificates from trade schools.

              Education for me has been a life long experience with more than a thousand hours of continuing education hours for professional license requirements beyond university.

              I acquired that education at great expense and much personal sacrifice. I joined the Marines during Viet Nam so I could cash in on the GI Bill. It was the only way I could begin to hope to afford college.

              It was the best decision I ever made and I would encourage anyone who wants to pursue higher learning of any kind to do so.

              Now is a great time to borrow some money, if necessary, to pay for that for that education and repay any loan with dollars that will be worth much, much less after years of double digit inflation.

              Double digit inflation is not hyperinflation.

              That education has served me well and I have recouped the cost of it many times over; and then some. It really depends upon the ability of the individual.

              Sorry you dropped out of college, but obviously a professional career was not for you.

              I am sure you will find your niche.

            • HAHAHA! funny. I’m not afraid of anything, jerk.

              “cash in on the GI Bill” a.k.a. take take take, just like the bankers, benefit from theft of the taxpayers, same as it ever was.

        • Analesa – Bingo.

          We were taught that college was the way to a better life, and that our lives would suck out loud without it.

          Instead, yes, my life sucked out loud, because by being a student I had to take the jobs no one else wanted, live in conditions just one step better than living in the street, etc.

          Going right into a trade would have meant a good life from the get-go, no student loan debt, and doing fun stuff right off, for instance the carpenter’s union wanted me and that’s stuff I grew up messing with.

          College is a scam.

          • I think people should go to college if they really are interested in the subjects, not because it is fancy or because you will be better of. One of the most important things in life is to have fun at work. If you love reading, studying and making theories work and have a favorite subject go to college or university.

            If not find something you really like to work with. Most trades and professions offer large fields of further qualification and the right people can become respected experts and are often well paid.

      40. i haven’t read any of the previous discussion, but here’s my take.

        the student loan situation is a bubble, just like many others, but it’s scale is far, far smaller than the subprime crisis, which was over a $4 trillion dollar whoopsie in just home equity alone. this thing is easy, as in really easy to throw a ring around. i’d shit my pants if this was the straw the broke the camel’s back.

        anyways, me and wifey owe over $50k in college debt, mostly hers. i can speak for myself when i say that i never once did the math on a calculator as an 18 y.o. i don’t think i had any understanding what actual wages would be when i graduated to understand what a hit $450 per month would be on an income like mine. i remember watching that direct loans video in the library so that i could get my first living expenses check. most of what i borrowed got spent on three things: 1) tuition, 2) books, 3) liquor/ladies.

        i had absolutely ZERO financial knowledge then, yet i was allowed to borrow, and i obliged them. crazy! tuition nearly doubled by the time i graduated. anyways, if i didn’t have of that debt, i could buy a sweet piece of property and get a real retreat going. that’s actually the price of my youthful stupidity. i wish i could strategically default on the whole thing.

        • Spent most on liquor and women but wasted the rest!

        • Obama will forgive the student loans – why do you think they nationalized the trade 18 months ago? I’m guessing this will start in October – just in time to buy some extra votes.

          • despite it adding the overall problem, i sure hope they do forgive the loans. i’d be able to devote hundreds more per month to preps.

        • So the new American way…..borrow and default….get Obama to forgive and screw those over who gave you the money.

          Maybe its no wonder the 1% is tired of paying the bill. Especially when much of it is considered a loan no one thinks they got to pay back.

      41. The irony is that these student leftists are getting ripped off to pay for their professor leftists, like Ward Churchill, who make a great salary, and then retire at age 50 or so on the dole.

        Enjoying your socialism yet, leftist students????

      42. ferdale, that was about perfectly put too, except maybe for this part:

        “this thing is easy, as in really easy to throw a ring around.”

        The powers-that-shouldn’t-be said the same thing about the housing bubble in the beginning too.

        I think that’s what they said about Iraq,… and Vietnam, … and… I think there were a Lot of things like that.

        On the bright side, it seems you now understand time preference.

        • the amount of loans outstanding between subprime mortgages far outweighs the amount outstanding for student loan debt. furthermore, there is very little risk of contagion beyond further monetary debasement. a vast majority of student loans are already guaranteed by the federal government. with subprime loans, the government only took on exposure via bailouts and toxic asset purchases after the whole boondogle blew up. the calculus is completely different in terms of solutions, but ultimately the same in terms of etiology; that being, monetary debasement, low interest rates, and centrally planned policies create bubbles.

          • HA! ferndale, now you Are sounding like those who said sub-prime was contained.

            I suppose a college loan note tied to a real estate deed can seem like it is insignificant, but to the homeowner it might not be, things have a funny way of cascading from there.

            When you write, “a vast majority of student loans are already guaranteed by the federal government” are you not getting it that *you* and I are the ones guaranteeing these loans and not “the feral goberment”?

            monetary debasement and low interest rates do Not go hand in hand, see for more.

        • the total amount outstanding is over $1trillion, but there’s absolutely no way that 100% of that will go into default, unless something HUGE occurs and unemployment goes to 100%.

      43. 1) Never take out student loans if you can keep from it: take less classes/semester, work 2 jobs. Hell, become a hooker if you have to.
        2) If you decide it is a BRILLIANT idea to go ahead with the student loans, NEVER EVER defer them; start paying on them immediately

        I went to school, worked 8 hours after school, studied 2 hours, got 2-3 hours of sleep and did it all again the next morning. Then, I got the BRILLIANT idea to take out student loans to help us pay tuition, buy books, and have a little left over to live on. Graduated college in 1993 with a BS degree in Radiology. They were literally waiting in line to hire us. Now, 19 years later, if I call in sick there are 4 people putting in resumes because they heard I was about to die. I remember telling my wife, “Baby, if we could just make $35,000/ year, we would be in there thick.” Well, $35,000 aint as thick as I used to think. The good news is I usually get a 2% annual raise; so, in just 31 more years I will have doubled my salary. Just the musings of an idiot.

        • I had no idea you could get a BS in Radiology.

          I’m guessing anyone who calls you an “X-ray tech” gets a dirty look.

          • Not so much, must maintain professionalism. However, the barium enema tip may get a little less KY

        • Lee…you at least got into a field that will most likely have stable employment for the near future.You are fortunate to get a yearly raise. Unfortunately, it will still be “the harder you work, the behinder you get”. With inflation running at least 6% overall, that 2% raise will not keep up with prices in things you need like food and gas. Good luck and don’t forget to wear your lead vest.

        • yup, but your doubbled salary in 31 years will be a 3rd of what it will take to survive in this’ll still be working you’r life away til death to pay off any thing you leveraged..

          And the wolf will always be at the door, and the first time you hiccup..some snot nosed brat will have your job for 5 bucks less an hour

      44. …instead of going to college just to get a job in an industry that has been systematically destroyed via outsourcing and H1-B visas, I should have just become a plumber. At least then I would be charging people big bucks for dealing with their $h!t

      45. One very big problem is the high school counselors. The guidance counselor makes the kids feel like losers if they opt to do something besides follow a course of academics in a college or university, especially if they are high acheivers who make good grades.

        They gave my daughter these stupid quizzes to see where her interests and talents would be, and then tried to talk her into going off to study archaelogy or art history. She has planned to go to a one year program to be a chef and you’d think she told them she intended to be a grocery bagger or a Wal-mart greeter with the reaction she’s gotten.

        The pressure to get themselves deeply into debt for a “proper education” starts when they are 15 in the school guidance office. The staff “helps” the kids fill out all of the applications and tells them that “everyone” takes out loans for school, that it’s no big deal, and that it’s vital for their future.

        Peer pressure via a trusted adult.

        • Daisy

          This is one “advantage” my son’s aspberger’s gives him. He’ll follow his own drum beat whatever any school careers advisors tell him lol!

          In the UK I could scream at those who advise kids to take “media studies”.

          • lonelonmum
            aspbergers is not real. it is basically a creation of the medical community and the government to label independant thinkng people as sick kooks. there is nothing wrong with your son.

        • Good on your daughter. I’m sure you taught her the basics of cooking but there will always be jobs being a chef in the upscale restaurants (after all the elite love to dine out). She can cook them some native dishes like chocolate moose(sp) or Canadian

        • No doubt about that, Daisy. It’s as if high school counselors are pimping for the bankers. And if not the bankers, they pimp for the military. It’s all one big sick circle jerk.

          Now that you mention it, I think there’s a few of those high school counselors on this board too judging by some of the vicious comments. Obamatrons masquerading as freedomistas? It sure seems that way.

      46. Oh those poor kiddos!! Can’t pay back your loans? Re-institute the Draft.

        • This is what my wife and I have said. Mandatory 1 or 2 year military service is not such a bad idea. If a kid has no idea what he/she wants to do right out of high school, some time on the Grinder with the CC questioning whether your parents were married can help you quickly decide on a career path.

      47. This won’t matter or cause a problem. Bernake will be pushing a few buttons or telling his secretary to tell someone else to push the buttons to create some more money and make it whole. After the recoronation party for Obumbles he’ll be forgiving all student debt to thank his key supporters. Problem solved.

        • The problem is far from solved, Jim.

          Watch Japan and see how things work out for them, looks like S is gonna HTF real quick.

      48. I guess i was raised a differently. After H.S. graduation (and during H.S. for that matter) we all were working. After school, weekends, holidays, etc. Any time you were not in school was an opportunity to work. Never even thought of getting a student loan.

        I attended a major University from which I recvd 2 bachelor degrees in 4 years of schooling. All of which I cash flowed by working. Then came med school. 4 more years of hard work. Again, paid in cash. Graduated 20 years ago.

        This is my opinion only. People. There are jobs everywhere, and there is 24 hours in every day for the opportunity to WORK!! What this country is lacking is a solid WORK ETHIC. Nobody owes you a living. But also, nobody can stop you from the opportunity to go out earn an income.

        My grandmother immigrated from Germany about 100 years ago (no Gov. assistance back then) help support her family from the tender age of 8. She often told us, the best place to go when your broke is to work!!!! God bless grandma!!!

        • I guess in your areas there were few illegals to compete for jobs.. forget about that in CA.

          • You can do a lot when you have to……

      49. Even the fishing jobs in Alaska are full of Mexicans!

      50. I kind of regret saying this, but it’s the raw truth. The stage is being set for the ??? anti-??? … All those that have lived above and beyond their means… and also had a run of bad luck…. The student loan crisis and the .. got to have it but might not be able to afford it “under water mortgages”; will all be forgiven if ya’ll just sign on to this New World System. Better to make some sacrifices now, if at all possible.

      51. lets be very serious here. all debt will have to be defaulted. ALL DEBT will have to be defaulted. this is the best answer, however sadly the other option is far more likely. HYPERINFLATION! barring these two situations, we will have an extremely violent unpredictable outcome. however it will end the same. fiat in its current form is worthless. it is not viable. can we please all come to our senses and realize these hard truths?and insist our “masters” leave.. or we will help them with that? continuing on like this is not funny, its f#&$*ing sick… we are all very sick individuals.. too stupid to know how stupid we are. f*$ing sad!

      52. yup, a degree in vaginal hair macrame (woman’s studies)
        will take your career to the top of the food chain. and
        it only cost the stupid pussy 85 grand. Now she can live
        in her divorced mother’s garage and work at Mcdees the
        rest of her life to pay off her student loan whilst
        dating tyrelle washington. I heart amerika!!!

      53. Oh yeah, one last bit for posterity:

        6 Reasons Not To Go to College
        You become poorer and less educated.

        … “It seems like the US government wants kids to make one of two choices: go fight in a war where you can get killed or where you will inevitably kill civilians or ruin their lives, OR, borrow money from us to get some form of higher education so we can use your interest payments to fight our wars.” …

        • HA! That thumbs Up or Down thing is funny, seems like there’s two bankers reading this website,… either that or two blind warmongers?

      54. I was really surprised when lil bird said she wanted to go to Le Cordon Bleu. We knew it was over the top expensive for an 18 month course, but 1 month after high school, she enrolled, stayed with friends in the city and worked as a paid intern in a bakery and graduated at 19 yrs old. She now works mon-fri at one job and wkends at another. Lil bird isn’t even 21 yet,and has her own apt in the city. Ok, it’s a tiny studio apt, but she’s moving forward with every step.
        Yes, the loan is a hefty one but one that will get paid off, exactly the same way I paid off the mortgage…one payment at a time. Someday she’ll take over the payment, but for now, I accept full responsibility for it.

      55. I worked in an arena last year, for 7 years actually, where the residents either lost their jobs, or didn’t have one. They literally took advantage of the “student loans” SPECIFICALLY to pay their rent. If they couldn’t pay rent, they decided to go back to school!

        • watersourcesolved, I imagine that describes way too many People. And, it’s kinda scary if ya think about it.

          Sophisticated welfare?

      56. The military can use some good people. Those who don’t/can’t repay their loans should be drafted into the military to repay the loans. I served for 4 years and I don’t think that they are any better than I am. How about being a little responsible.

      57. There is no escaping debt payments unless; you own NO Real Estate, and a piece-o-shit car, or you can file bankruptcy. If your name is attached, in any way to real estate, a judgement and lein, can, and most likely will be brought against you. Even if that real estate is under water and you let the bank have it, You’ll be on the hook for whatever is left owed after the bank dumps it. Don’t forget all those added collection/attorney fees. If you can’t pay cash, stay out of debt and live within your means. Someday soon it may come back to bite you. Like when commie China comes collecting. Working as an indentured slave for the remainder of your life, for a daily bowl or two of rice, isn’t my idea of living. Just sayin’.

        • don’t-tread, perhaps you forgot? People *can* skip the country and avoid their debt.

          “You will tend to do a lot better if you follow common sense and ignore the crowd. Ignore the cheerleaders as well. …

          Just because some fool comes along and whispers sweet nothings in your ear doesn’t mean you have to believe every word.” – Bob Moriarty

      58. Wow, I pay my student loans late every (over 30 days) every month out of laziness. I guess that means im in default and ill never pay them back. The doom and gloom is hysterical.

      59. I graduated from chiropractic school in 2007. I got a job about eight months later paying a $1,000 a week (standard for the 1st year)… which is $800 per week after taxes. Student loan repayment on $180,000 is $900 per month for 30 years. My wife is also a chiropractor, but could not get a job in the same area where I worked. We then took over a chiropractic office from my boss and basically inherited his ridiculous rent and leases just for the chance at having our own business and employing my wife so we might be able to pay our loans. We deferred our loans for the next three years, as things continued to slide downhill… we were lucky we didn’t go bankrupt. We finished the bad lease and simply left the bad area the practice was located in. We then took all our equipment and started in our hometown 60 miles away… starting from scratch. Being out of deferment time I asked for a hardship deferment for 12 more months as it’s commonly know the 1st year of a new business is the hardest. I was denied because we made a whole $25,000 our last year at the “bad practice”. I was told I had to make under $22,000 to qualify. I then said… but my wife also has the same ridiculous loan repayments… are you telling me we have to pay $1,800 per month? I was told by the loan officer they didn’t take into consideration we both had the big loans. Makes me wonder if it wasn’t a big mistake to get married, because if we weren’t married we wouldn’t be lumped together like that and each would have had to make more than $22,000 to not qualify.

        Anyway… because I didn’t get the hardship deferment I defaulted. The last three months, our business has finally turned around. I then contacted the student loan company and said… Okay, it’s time to start making payments on this… I’m finally able. Here’s the interesting part…

        My balance as of November 30, 2011 was $180,299.45 and my balance as of February 27, 2012 (just under 3 months later) is now $223,456.58. Because I didn’t have the money and didn’t have ability to pay I was charged a “one-time fee” of just 23% against the principal. It ended up going up over $43,000. Now I have to ask… WTF??? HOW IS THAT LEGAL? Because I didn’t have the ability to pay, they are allowed to gouged the hell out of me for $43,000??? Doing the math on that… this “collection fee” of $43,000 will end up costing me more than $400 per month for 10 DAMN YEARS… and that’s on top of the $1,000 I’m suppose to now pay for the original loan.

        All I know is I need to get in contact with someone about this, because I’m not going to stand for getting fleeced. The only answer I got from the Iowa Student Aid Commission is… We only charge a one time fee of between 18 and 25%… and it’s all in accordance with the federal government and rules/regulations. Well I’m here to tell you the rules have got to be changed. How the hell can they get away with charging someone $43,000 as a COLLECTION FEE??? I will not pay this ridiculous fee… NEVER. They’ll have to chase me through the gates of hell to try and collect it. So wrong on so many levels to charge a fee like that to people that don’t have the money in the first place. I am having this investigated… because I seriously believe I should have been eligible for the hardship and they simply denied me leaving me with no options.


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