More concerning news about student loan delinquency rates

[OverVolt]

Extreme example but true. I have seen some colleges go from 10,000 students, to 15,000 to 20,000. Easy loan money and the promise of better paying jobs with that degree in hand have resulted in a college building boom.

Mine built a new $72million building.

For English Majors.

 

[Farang]

I'm curious how full public funding of universities/trade schools effects this problem. My understanding is that in Europe, students choose one of two paths (trade school or university), neither necessarily better than the other. Rather than having each individual take on a load of debt + interest, possibly it might be better if we all paid for it with our tax dollars. Everybody would benefit, even the few who did not attend either, because education benefits society as a whole.

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

 

[rudder]

This is great news.

The sooner this situation explodes the sooner we can stop sending kids to college and racking up 50k debts for music therapy degrees. We need this to come to a head as soon as possible.

Think of all the unemployed music therapy professors.... This must not happen.

 

[Exterous]

I'm curious how full public funding of universities/trade schools effects this problem. My understanding is that in Europe, students choose one of two paths (trade school or university), neither necessarily better than the other. Rather than having each individual take on a load of debt + interest, possibly it might be better if we all paid for it with our tax dollars. Everybody would benefit, even the few who did not attend either, because education benefits society as a whole.

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

Perhaps but keep in mind that our Public Schools are 'free' as they are paid for by tax dollars yet there are significant (potentially detrimental) issues facing public schools. I think our culture has a serious appreciation problem for things that are free

 

[1prophet]

I'm curious how full public funding of universities/trade schools effects this problem. My understanding is that in Europe, students choose one of two paths (trade school or university), neither necessarily better than the other. Rather than having each individual take on a load of debt + interest, possibly it might be better if we all paid for it with our tax dollars. Everybody would benefit, even the few who did not attend either, because education benefits society as a whole.

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

When Americans are ready to be TOLD what they can major in or they must go to trade school, eh

We all know Americans can't be told and will do what they want anyway, until the gravy train runs out of course.:whiste:

 

[Apple Of Sodom]

So many students want the full college experience. They won't sacrifice. They must live in the dorms, pay out of state tuition, buy books at retail, buy a laptop, have spending money, maybe even a car. They want to live large and go to school. They rack up $20K per year or more when they could have worked, rented a small apartment with friends, and made sacrifices. boo fucking hoo.

Edit:
https://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064

The cost for one year of tuition and fees varies widely among colleges. According to the College Board, the average cost of tuition and fees for the 2012–2013 school year was $29,056 at private colleges, $8,655 for state residents at public colleges, and $21,706 for out-of-state residents attending public universities.

It looks like people should be attending public colleges in their state of residence. $8,500 for a year isn't so bad. Work a part-time job, buy used books, and live meagerly. I worked full-time in college and had a family. It isn't that hard. And this was for a BS in CS and an MSE in Software Engineering...not exactly the easiest of majors. Certainly, anyone majoring in English Lit or Music Therapy should be able to work full-time and still go to college.

 

[unokitty]

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

I don't disagree that they don't seem to have the government loan problem. Though, they do have other problems. For Example:

In Europe, universities struggle to compete and adapt

"But as a whole, European universities have stagnated and now lag behind American universities by almost every measure – from funding to achievements in research to graduation rates."

Nonetheless, if I could get the right scholarship for a semester or two, I'd be gone.

Uno

 

[Zorkorist]

So many students want the full college experience. They won't sacrifice. They must live in the dorms, pay out of state tuition, buy books at retail, buy a laptop, have spending money, maybe even a car. They want to live large and go to school. They rack up $20K per year or more when they could have worked, rented a small apartment with friends, and made sacrifices. boo fucking hoo.

Edit:
https://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064

The cost for one year of tuition and fees varies widely among colleges. According to the College Board, the average cost of tuition and fees for the 2012–2013 school year was $29,056 at private colleges, $8,655 for state residents at public colleges, and $21,706 for out-of-state residents attending public universities.

It looks like people should be attending public colleges in their state of residence. $8,500 for a year isn't so bad. Work a part-time job, buy used books, and live meagerly. I worked full-time in college and had a family. It isn't that hard. And this was for a BS in CS and an MSE in Software Engineering...not exactly the easiest of majors. Certainly, anyone majoring in English Lit or Music Therapy should be able to work full-time and still go to college.

One wonders what the culture is that could take out a loan to complete college.

It is possibly socialistic, I guess, where to get through college you have to "pay into" society. Then you get the job. Then you work the rest of your life to pay back the college loan, and have a house, and a girl, and be able to amke children.

I'll bet it all goes back to Government, Insurance company and Lawyers, where nothing can be had for a reasonable cost today. All costs are Hyperinflated, by Government, Insurance Companies, and Lawyers.

-John

 

[DCal430]

I'm curious how full public funding of universities/trade schools effects this problem. My understanding is that in Europe, students choose one of two paths (trade school or university), neither necessarily better than the other. Rather than having each individual take on a load of debt + interest, possibly it might be better if we all paid for it with our tax dollars. Everybody would benefit, even the few who did not attend either, because education benefits society as a whole.

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

There are other problems in Europe, and access to higher education is no better in Europe than in the U.S, even with our cost.

 

[rcpratt]

Maybe I should stop paying mine and just hope for a massive bailout.

 

[Mandres]

The solution is to make student loan debt dischargeable in bankruptcy like almost every other kind of debt and let the situation sort itself out.

Risk-free lending = a huge influx of cash (particularly to unqualified borrowers/institutions) = higher demand = higher tuition costs.

 

[shortylickens]

The solution is to make student loan debt dischargeable in bankruptcy like almost every other kind of debt and let the situation sort itself out.

Risk-free lending = a huge influx of cash (particularly to unqualified borrowers/institutions) = higher demand = higher tuition costs.

Thats pretty much how I see it. Sometimes I think colleges have a hand in the process cuz lord knows they can never get enough money.

Ditto the text book industry.

 

[OverVolt]

Colleges definitely work with the text book industry. They have editions specific to a certain school now so they can split the book in half and sell it to you twice and you can't sell it back to Amazon etc. because its "X University edition" specific to your university. Book store only.

For example some Calc books could cover Calc I and Calc II. So they broke it in half (The second book starts at chapter 14 or something) and they do something to the book to make it specific to the university (probably just mix up the homework problems or something). Its quite the sham now.

 

[piasabird]

Most people are making student loans through the government loan program. OBamma took it over and then promptly increased the interest rate twice as high as it was before the government took it over. This is what a compassionate democrat does. He squezes poor people like a loan shark.

 

[highland145]

Most people are making student loans through the government loan program. OBamma took it over and then promptly increased the interest rate twice as high as it was before the government took it over. This is what a compassionate democrat does. He squezes poor people like a loan shark.

I resent that statement. He can't be in my club.



News this AM said since 2002, ed costs have gone up 92+%. My sixth grader better keep his straight A's going.

 

[Zorkorist]

I resent that statement. He can't be in my club.

News this AM said since 2002, ed costs have gone up 92+%. My sixth grader better keep his straight A's going.

Why would you want that? Better to avoid College, and focus on a trade.

Tradesmen will be the last people the Red Tide comes after.

They don't have any debt.

-John

 

[highland145]

Why would you want that? Better to avoid College, and focus on a trade.

Tradesmen will be the last people the Red Tide comes after.

They don't have any debt.

-John

Don't disagree. My bro, the plumber with a 10th grade ed, makes ton of $$.

 

[Doppel]

The solution is to make student loan debt dischargeable in bankruptcy like almost every other kind of debt and let the situation sort itself out.

Risk-free lending = a huge influx of cash (particularly to unqualified borrowers/institutions) = higher demand = higher tuition costs.

That's how it used to be. The argument was that kids had no collateral (can't take somebody's brain) so little motivation not to declare, but this is bullshit. Banks were still lending before it became illegal to discharge, and now that it cannot be done the banks are lending more all the time.

Colleges definitely work with the text book industry. They have editions specific to a certain school now so they can split the book in half and sell it to you twice and you can't sell it back to Amazon etc. because its "X University edition" specific to your university. Book store only.

For example some Calc books could cover Calc I and Calc II. So they broke it in half (The second book starts at chapter 14 or something) and they do something to the book to make it specific to the university (probably just mix up the homework problems or something). Its quite the sham now.

It was a scam when I went. New text book $100, resell it back to book store for very little a year later. If you were clever and knew the course syllabus early on you could buy that textbook, pay a few bucks to photocopy what you needed, then resell it in short order.

 

[the DRIZZLE]

That's how it used to be. The argument was that kids had no collateral (can't take somebody's brain) so little motivation not to declare, but this is bullshit. Banks were still lending before it became illegal to discharge, and now that it cannot be done the banks are lending more all the time.

There is plenty of middle ground between the current standard to discharge student loans (which is essential impossible) and regular bankruptcy law. However, if we make them easier to discharge but continue to have the Federal Government give loans to all comers we will make the problem worse, not better.

I support making the loans easier to discharge, but only if we get the Federal Government entirely out of the business so lenders can appropriately price default risk.

 

[nextJin]

I'm curious how full public funding of universities/trade schools effects this problem. My understanding is that in Europe, students choose one of two paths (trade school or university), neither necessarily better than the other. Rather than having each individual take on a load of debt + interest, possibly it might be better if we all paid for it with our tax dollars. Everybody would benefit, even the few who did not attend either, because education benefits society as a whole.

I don't mean to get into a big government debate here but from a laymans perspective it seems like many European problems do not have this issue

Where do you think the majority of these loans come from? The reason there are year over year tuiton increases is because the government backs a large majority of the loans. The only difference between the two would be the individual here gets screwed before the government has to pay as opposed to just paying anyway.

The best course of action to to have the government almost abandon its current path and force schools to start competing again. As it is, they could give a damn.