Pop goes the bubble!

U.S. government underestimated student loan default rate by 99.8%.

wsj.com/articles/student-debt-payback-far-worse-than-believed-1484777880

Whoopsie!

Other urls found in this thread:

youtube.com/watch?v=bw9CALKOvAI
zerohedge.com/news/2017-01-19/us-government-caught-massively-fabricating-student-loan-default-data
latimes.com/business/la-fi-navient-lawsuit-20170118-story.html
twitter.com/NSFWRedditVideo

they estimated 5% and it was 9.8%

Thread theme.
youtube.com/watch?v=bw9CALKOvAI

why cant americans pay back their 60k/year tuition?

everyone here seems to be ok with repaying their 5k/year tuition

>voluntarily take on a blinding amount of student debt
>play x games win x prizes

...

>they successfully turned college into high school part 2 and put everyone into crippling debt in one move

You have to admit, they're good at what they do, they're not stupid.

>yes, the minority studies course is indeed in high demand among big businesses, as you can see, 95.7% of our graduates are currently employed
>wow, how's the pass rate?
>our institution upholds ourselves to a very high standard, only 80% of candidates pass, it's very exclusive
>screw engineering then, sign me up
>normally you'll have to pass the interview first; however, you present yourself very well and that part can be skipped (rubs hands)

zerohedge.com/news/2017-01-19/us-government-caught-massively-fabricating-student-loan-default-data

>tfw I payed off my loans with very little help
>tfw I gave up so much for a few years to do it
>tfw my friends all have crippling debt and unable to do what they want yet go and drink on weekends
its about living in the means. Anyone can pay off their debt, they just have to be willing to accept sacrificing luxury items.

>unable to do what they want yet go and drink on weekends
This fucking gets me. Down here in aus our uni fees are either paid straight up or put down as a hecs loan where you pay it off via tax over your life, and our costs are set via the gobbinment so max 15k a year. But yet people still find a way to out themselves in debt and piss away their money drinking

I wanted to catch up with my old mates for a pub dinner last year and they said no because their 'budget was tight' fuckers still went out and spent an easy $200 that weekend in clubs

>they estimated 5% and it was 9.8%
So off by 96%. Still roughly the same as OP.

>shove propaganda at 16 year old kids telling them they will make a million more dollars going to college
>surprised they fall for it
>blame them for being lied to for decades by all of their parents and teachers
>force them into cuck labor for the rest of their lives

(((student loans))) need to be eliminated, all loss taken by the loan issuers, public and private.

That is the only way to teach loan sharks not to fuck with our children's futures.

We need a hard reset, with new realistic expectations given before any kid is even allowed to set foot on a campus.

Remove the government from backing loans. Eliminate all sports programs across all colleges. Slash all college president's salaries to $1. Revert colleges to a place of learning ONLY.

I'm not even finished.

Eliminate any college from being able to sell textbooks. Forcefully shut down all textbook stores nationwide with military force (this is the only reward they deserve). Publish all textbooks online, saving paper and everybody a lot of money. Knowledge can be practically free in the information age.

Anybody who has their lives destroyed in this process deserved it.

someone archive this paywalled shit

>tfw didn't buy into the college meme
>tfw went to work at age 18 at a machine shop making $12
>tfw making $28 an hour 6 years later, have also become a skilled tig welder
>tfw marry a nurse and buy a house on 8 acres innawoods

I'm doing better than all but the top 1% of my graduating class, and I've never had any sort of debt prior to buying my house. Feels good man

Many more students have defaulted on or failed to pay back their college loans than the U.S. government previously believed.

Last Friday, the Education Department released a memo saying that it had overstated student loan repayment rates at most colleges and trade schools and provided updated numbers.

When The Wall Street Journal analyzed the new numbers, the data revealed that the Department previously had inflated the repayment rates for 99.8% of all colleges and trade schools in the country.

The new analysis shows that at more than 1,000 colleges and trade schools, or about a quarter of the total, at least half the students had defaulted or failed to pay down at least $1 on their debt within seven years.

The changes could have implications for federal policy. Some lawmakers have endorsed the idea of punishing colleges if enough students aren’t paying back the loans.

A spokeswoman for the Education Department said that the problem resulted from a technical programming error.

This isn’t the first time data problems have affected the Education Department. A recent government report criticized how the department tracks information including the budgetary implications of student loan forgiveness.

“This is a quality control issue with a Department of Education that has been facing criticism already for other data issues,” Robert Kelchen, an assistant professor of higher education at Seton Hall University. The department “needs to be regularly audited so these issues can be discovered sooner.”

The student loan repayment rates were originally released in 2015 as part of the Obama administration’s College Scorecard, which followed an aborted attempt to rate colleges and tie federal funds to those ratings.

At the time, the Journal reported that at 347 colleges and vocational schools, more than half of students had defaulted or failed to pay down their debt within seven years. Those figures were based on students were supposed to start repaying loans in 2006 and 2007.

In September, the Department released data tracking students who should have begun repayment in 2007 and 2008, and that number rose to 477. But with the updated number released last week, that number grew to 1,029.

No college saw its repayment rate improve under the revision, and some schools saw their seven-year repayment rates fall by as much as 29 percentage points.

The University of Memphis had one of the largest drops in its repayment rate following the recalculation. Previously, the Department said that 67% of its students were repaying loans within seven years of entering the repayment period. That number fell to 47% after the recalculation.

In a statement, the school said it “was not contacted by or made aware of the data changes” from the Education department.

“Given the magnitude of the numerical changes in the report released by the Department of Education, the University of Memphis will be challenging the accuracy of the newly adjusted data,” the statement said.

Daily reminder that total U.S. student debt stands at $1.4 trillion and is increasing by $100m every. single. year.

>Eliminate any college from being able to sell textbooks

Textbooks are the biggest fucking scam

I remember my dad telling me you could get some Chinese print shops around campus to photocopy them back in the 80s and 90s. It was possible to pay $30 for a cheap photocopy of a $70 or $80 book.

Then PDFs started coming out and publishers started publishing annual updates to standard texts that really didn't need to change. Then kids got smart and began torrenting them.

So now, you have a $200 math textbook with a new "revision" every two years, and of course the textbook comes with a code to the online component of the course which is worth 15-20% of your grade or some shit.

I didn't even think this level of stupidity was possible.
>anyone who has their lives destroyed in this process deserved it
Then again, I shouldn't be surprised at how little the left cares about the working man

billion, not million

>we will get to guillotine a student loan shark in your lifetime

Not sure how things are in Bongland, but here there is a real effort to destroy our children's futures with false promises and overbearing debt.

>the working man

I think you meant (((the working man))) in this case.

And no. I don't care about those exploitative little fucks.

>A spokeswoman for the Education Department said that the problem resulted from a technical .
>programming error
will people believe this

>loan issuers work
>even one minute of their lives

Top fucking kek.

Boot them into the fields. Their only future should be picking our fruits and veggies at the same rates illegals do it today.

There isn't a single person that issues loans for a living that knows what work is. If they did, they would hang themselves tonight for having issued the loans in the first place.

>you think I'm a leftist
Lel, the leftists are the ones who are trying to save and support this failing system.

I'll be done paying mine off this year. Took about 10 years and it included a master's degree. I still don't have a decent job.

20 y.o here, going to college soon
Is Physical Therapy a good major these days? I figured I would become a PT because my dad is one that's well known around town

Checked
Still, note even 20 years ago you would have been a poor educational loser being spit on by fancy college grads working in finance.

You got lucky, nothing more

they just didn't want to hang out with you

Totally agree. I want to work in education as an administrator. Become the scammer.

it's generally low pay, low stress

also depends if you want to run your own pt clinic or work for a hospital or as a traveling pt

if you run your own clinic then you will make some decent money but you'll have all the added stresses of being a small business owner and I'd imagine you will eventually get raped by single-payer

It's not so easy to produce extra money depending on how you have your life setup.

Like I live ~45 minutes from where I work, so public transport is out of the question, and relocating closer to where I work (say within walking distance or bus distance) my rent or mortgage would basically double. So I'm forced to own a vehicle, and pay for gas, and pay car insurance, and pay for maintenance (oil changes, etc). I have my essential bills like rent, electricity, food, hygiene items (deodorant, toothpaste, shampoo, toilet paper), and then the occasional replacement of things like clothes (cheap t-shirts, jeans) a couple times a year maybe. All said and done, if I'm only making around ~$50k/year (pre-tax) I'm basically down to the wire with these expenses, like with no luxury or major entertainment expenses or extravagant vacations or weekly drinking or any of that shit I'm lucky if I can put $2-3k/year into a savings account, the rest is spent on my bills and paying my federal taxes. The thought of being heavily in debt on top of that is absurd.

How to get past pay wall?

He still is, its just he now makes roughly the same amount as they do. Me personally I do not care how much a trade pays, it will always be seen as lower class loser work. I would rather make half as much money working in an office, wearing a suit to work, going out to lunch at fancy restaurants every day than being a blue collar guy.

>tfw making $28 an hour 6 years later, have also become a skilled tig welder
Not bad. I make that much as a sub. It's on call but still. When I become a full time teacher I'll make double that and cap out at around $80,000.

Fucking this

>Live in a rural apartment
>Have had the same phone for years
>Don't buy every single game console ever
>Don't go drinking every night
>Drive a beat up shit car
>Wow look at all this extra money I have that I can use in emergencies

Fucking this too. My parents wouldn't believe me when I tried to explain this shit to them.

>Be a total poorfag who can barely get help for college despite desperately needing it
>Rent my text books off Amazon for $10-20 a piece
>Now have to turn around and pay $100-200 PER CLASS to be able to access my fucking homework

>Eliminate any college from being able to sell textbooks.

This.

The more decades a family exists in urban environment, the higher the likelyhood is that they forget how to cook and manage their financial matters.

You're not going to even clear 40k a year as a teacher sorry bud, don't know what they're telling you. And subs usually get paid $100 a day lol.

>go to college
>get 70k+ debt
>still obtain 1st world luxuries
>still have debt of 70k+
>blame everyone else for your troubles

In Cali we do. My district starts you off at $45,000 ($55,000 with a master's). You can look up teacher salaries on Transparent California. Older teachers make $80-$90k.

I want to know how the fuck people get so much debt?

I'm a high school senior, the college I was accepted to costs around 55ish thousand a year total, and I have 46k in scholarship money from the school itself.

Thanks aquafresh.

Not really. They've destroyed western civilization and ensured the coming of a massive global war in the very near future.

If they think they will survive that war, they need to do some more reading. Those bunkers will become tombs.

Read zerohedge instead
zerohedge.com/news/2017-01-19/us-government-caught-massively-fabricating-student-loan-default-data

>I'm a high school senior

That's still $36,000 for a piece of paper. Don't go to college.

>My parents still pay for everything: the post

1999 was 18 years ago pal

>I'm a high school senior
Sweet child, you know nothing of the world. Also, way to make me feel old, asshole.

>Tracking students who should have begun repayment in 2007 or 2008

I think the most alarming part of this is these are nearly 10 year old numbers at this point.

Imagine what they are going to be for current graduates.

What's your rent?

2-3 thousand a year when you're making 50k is way too little. If you're spending more than $1200 a month in rent you need to find a roommate bro.

because on top of your tuition costs will just be subsisting for 4 years. So tack on another $20k/yr for food, housing, entertainment, books, etc

And if you aren't on your parent's insurance your mandatory insurance costs will be another $3-5k a year

>be adult
>sign contract
>pissed you have to keep up your end of the bargain
Wew

At this point it seems better just to not risk getting tens of thousands in debt for a degree and just try something innovating.

oh and I almost forgot a car

so another $5k a year or so for insurance, maintenance, and gas

So even with your massive scholarship you are still going to leave college with over $100k in debt

Buddy of mine, at least 140k (wouldn't give me a straight answer) in student loan debt. Earns 100k salary with chance for bonus. Constantly says has no money but buys useless shit and goes on trips. Makes minimal payments on loans.

Doesn't understand the concept that maybe if he cut all this frivolous spending out and lived on a combined income of 80k a year (fiance makes 50k so 40/40) that he could pay off 2/3 his debt in two years.

Like how fucking dense are you? Of course he doesn't like to be told what to do or whatnot and does the exact opposite, but hey, whatever, not my problem

Textbooks aren't so bad because the tax credit you get for the is like $60 bucks a month for the school year which is pretty good.

idk what you study but Engineering programs are pretty good about limiting the need to buy textbooks and even when you do, people are pretty good about splitting the cost and scanning the book for a large group of people.

american parents diligently teach their children the american way I see

scnr

>the college I was accepted to costs around 55ish thousand a year total, and I have 46k in scholarship money from the school itself.

Where are you getting the other $9K? Do you need housing or do you commute?

Now imagine people in your same position that didn't get a scholarship or aid.

Read that one of the biggest loan holders, Navient, is being sued by the government.

latimes.com/business/la-fi-navient-lawsuit-20170118-story.html

>student loan
So tell me, burger-bros, how's student loan for not retarded degrees?
I'm led to believe that people who cry about student loan the most, are people who chose womyn studies and related.

Thats the thing with people now a days, They dont know about the overwhelming options to pay of their debts.

>State School (cheap)
>Rotc
>Service in the military
>Boys and Girls club of America
>Unions
>Loans
>On campus jobs

Or, just simply, going to schools in your fucking price range.

I went to a state school and saved 30k. If you are going to a school that you know is expensive, don bitch and moan when you have to leave and pay it. own up

You can get student loans for any major. The ones who complain are the ones in every major who didn't actually get a degree worth anything.

No, student loans are pretty bad for all different kinds of people

It's not by major, idiot. It's by school.

>55 thousand a year

What the FUCK?

Is this like an Ivy League Private School?

Except the people who got good jobs are the ones who paid them off and no longer have to cry about them, retard. That's the point.

This

Take the money from all the 1%ers on Trump's cabinet.

Most of those who work in the field they got their degree in won't complain about debt, unless it's something like art, history, or psychology.

We might not be around for the war, damn

>Eliminate any college from being able to sell textbooks.
Fucking this. College bookstores have retardedly high price markups for even bare basic shit (ie. Temple University's bookstore charges $2.86 for copybooks that can be bought for $0.90 at Walmart, $40 for 100-page carbon-copy notebooks). Even most of my professors give enough information during lectures specifically to make buying textbooks supplemental instead of essential and give outlines based on earlier editions of the book that are actually possible to pirate online. Even renting textbooks is highway robbery since they still charge you half the total textbook cost while having deadlines for return due like a month before your semester actually ends.

Daily reminder that you can goto college a nice private college for free if you aren't a fucking retard.

Source: me. Academic full ride the entire time.

The only people who bitch about loans are absolute nigger degenerates

I don't really understand why some people go to college and get shit degrees. Like whats the point. Fuck college ive already decided to join the military after highschool.

>Lived at home
>Had a part time job
>Got a few scholarships
>Graduated debt free
>Meanwhile I had a car and mostly free food the whole time
>Friends has mountains of debt

Feels fucking great being /debtfree/

>tfw debt free software dev
College is the worst meme, but I'm not paying off your loans. Colleges should be forced into bankruptcy after the Dept. Of Education is demolished.

Society needs like half a dozen elite colleges. Everything else should be private tech and applied science schools with a 1 or 2 year turn around.

So now Sup Forums is anti-capitalism.

10% default rate isn't that bad desu.

If we're pro capitalism we let these loan institutions crash and burn. They're the dumb motherfuckers giving out loans for women's studies and other degrees that don't generate revenue to pay back loans.

Same, tfw only 5k in loans left, investments worth 30k and rising, I make more on my investments than my loans cost in interest. No point in paying them off any sooner than I need to.

kek

Hope the liberal art graduates are enjoying the barista career and the debt.

Subsidizing college loans, great idea.

>
This is the problem in all industries they mark up things to much. Everything is to expensive so it inflates profit margins and makes it look like unlimited profit is possible. Soon they will hit a ceiling and no one but the top 1% will have any money.

How can I get some non loan financial aid with going for a second bachelors?

>muh gapitalism will surely solve this as it always does

Good choice my friend.

The first year is a rough but once you adjust and they loosen the chain on you its pretty comfy and good work.

Just don't be a shitbag and do you work.

>10% default rate isn't that bad desu.

True.

Especially since thanks to compound interest the other 90% ends up paying a multitude of the original amount.

Sup Forums was never pro-capitalist you idiot

National Socialism is a far cry from capitalism

Don't estimate the value of a formal CS education. When I started my first job I was the only person there educated in complier construction and ended up doing more teaching at times than I ever planned.
Core classes can definitely be trimmed down, but a lot of specialization is only possible because there is a large research environment

That's an eva peron sized default rate.

Can you imagine if loan rates were based on your choice of major?

maybe some people are just taking their chances and hoping they will be able to default favourably at a later date when too many people default and the market crashes?

underestimate

$80k/yr in Cali = $55k/yr almost everywhere else in the country.

What's socialists' solution? Starve to death?

Those are costs that somebody has to cover. If people can't afford it so can't the country.

>If people can't afford it so can't the country
oh but that's where you're wrong

The Jewish banksters can.

You mean government will just print more money and inflation will subtract it from people anyway?

Nobody is obligated to pay for useless degrees.

>Publish all textbooks online
If your major is worth shit, your textbook will be easily found online you troglodyte.

A teacher in Kentucky pushing 30 years can make close to 85-90k a year

>went to college for two years
>dropped out second year after realizing it was a fucking sham
>two+ years later I am still paying off those loans
If I dumped all my money now, including my emergency savings I could pay it off. Seeing this I might have to cause I bet these fucks will jack the rates up or something ridiculous.

I have 30k in student debt and I haven't paid back a fucking cent, and I never will.

>Go to local college
>Don't dorm
>Cheap enough that parents can pay ~$8k tuition/year

>No debt
>Work hard enough for ~$100k job, starting as soon as I graduate

People are so dumb.

I'm glad I've been shitposting on Sup Forums since it was /new/ You guys really helped me avoid some major jews man.