The student loan debt bubble is one of the biggest ever

The student loan debt bubble is one of the biggest ever.

What will happen if too many people start defaulting?

Will there be a bailout? How can we change the system to make it more sustainable?

Other urls found in this thread:

nofrakkingconsensus.com/2013/05/05/what-does-half-a-million-in-science-grants-buy-you/
ratemyprofessors.com/ShowRatings.jsp?tid=1351393
twitter.com/NSFWRedditVideo

How about this, we just forgive the debt to those actually working.

But the debt is owed to banks. How do they make up the shortfall? They will stop issuing new loans and then they will lose even more income. Not to mention people cannot afford education if they can't get a loan.

Furthermore, if you forgive the debt of those working, the only people holding debt will be those most likely to default (they have no income). So the whole system crashes instantly and now poor people can't go to college no matter how smart or ambitious they are. Government has to import even more foreign workers to make up for the lack of skilled dometic workers.

Anyone have any other ideas? I cannot find a solution that ends well here.

The colleges will end up defaulting Trump wont bail them out most will collapse espically the "feelings first" ones there will be a vaccum that needs to be filled. I will take out a huge loan and build an awesome college and make billions because i wont let BS SJW infect my college.

You make up the shortfall by making he tuition debt dischargeable in bankruptcy or you make a generation of debt slaves.

It's one or the other at this point

>a generation of debtslaves

I hadn't thought of that but you're right. As if this were all happening by design....

It is happening by design. By the time you graduate with that much debt, you're very willing to sell yourself to get some cash and pay the debt. You aren't going after your dreams, you're going after not starving

Its not a bubble when people cant walk away.

For housing people could just say "why would I pay off my townhome when I could walk, rent for 2 years then buy the townhome next door for 60% what my loan is now."

A Hitler-esque takover of the banks is literally the only way to do this and avoid a massive recession/possible worldwide economic collapse. Take money from all rich bankers and distribute it

People with student loans who can't pay should be forced into indentured servitude building and maintaining roads, bridges, public buildings, national parks, community farms, mines, etc. This will help them build character and ease the tax burden on our deserving seniors.

i really think that something needs to be done about student loans but pic related has pushed me to the "fuck them, they made their own bad decisions and now they want us to pay for them. eat shit" territory.

fuck you. i'm not going to pay for your $80k art degree you dumb fucks

The difference is the townhome securitizes the mortgage, but student loans have no collateral other than the students themselves. Bad break.

It's the next bubble that will explode, and just like the subprimes everything will fall down.

If they get bailed out, after I went to a cheap school, commuted from parents, wore cheap non designer clothes, at cheap food, and paid mine off with work... then I will probably leave this shithole country.

>I'll just continue to take more and more loans
>w-what d-do you mean I need to pay it back?
>PATRIARCHY WHITE MEN PAY FOR MY WOMENS STUDY DEGREE

This is why they deserve no sympathy. They had no intention on paying these loans back, they expected daddy government to come in and save them.

I don't know. There are a lot of people under 35 who don't expect to be able to pay their debt off.

maybe have some oversight on those jews that charge you $900 a book thats only good for one class and one semester.
Maybe all the alcoholic, coddled bubble children taking ((psychology)) ((political science)) ((sociology)) and ((gender studies)) courses should actualy open their eyes when they're outdoors, drop out and get a fucking library card

Moron, here. I have #75k in student debt (started out at $60k, thanks interest.) Went to a private college and private graduate program. Majored in the humanities because I genuinely wanted to be a teacher. Had a mental breakdowns right after school and realized I should never be around kids or hold any manner of greater responsibility with that risk. Currently work for a Fortune 50 company making $46k a year. Student loan payments are $700 a month. It took me 4 years outside of school to make more than $11 an hour. I fucking want to die.

Yes, I owe this money. No, it isn't the Government's responsibility to make it go away. But it would have been nice if someone said "No, idiot, we aren't loaning you all this money to study the humanities." Or someone else to say "This bipolar ticking time bomb is lucky to even have a job, maybe we can do something to lighten the load?" Fuck. I dunno. I have a used car, rent, free internet thru work, old cell phone, haven't bought new clothes in years, old shoes. Fuck it. I'm ready for WW3 or a Civil War rematch so I can go sacrifice myself on the frontlines and die a hero instead of die poor and useless.

I appreciate the first hand account. I have seen a theory that modern youth are so angry because adults never told them no, just blindly indulged withput caring enough to say no.

You should remember that by making your payments on time you are not useless. You are the one propping up the whole system. One day you will have a godly credit rating and be head and shoulders above everyone who defaulted.

We should also remember that we elect our leaders to fix these problems. We can brainstorm but the power is in their hands.

>tfw never went to school and make $35 to 50$ an hour depending on the month.
doesn't mean im not part of the rat race.
the best thing about this country is you can get a truck and a trailer and live off the grid for free.
You sound like a pussy. and that's why you feel like a failure. you need to start appreciating your God given freedom. you''re not some Euro-queer, senpai

>What will happen if too many people start defaulting?

Not possible, unless young people don't want to take vacation overseas, own any vehicles legally and start to commit suicide enmass.

And that is impossible in public transport-free competitive America.

>implying we want liberals traveling and spreading their cancer

Anyone else have any ideas?

Anyone have access to the delete key?

the obvious solution is to pull your kids out of public school, organise as a community and make the fuckers take MOOks together.
They'll be more prepared and more educated coming out of the gate than the drugged up degenerate offspring of yuppie morons

Bad things. Government starts having funding problems. After all those loans are assets on their books. Uni's start shutting down, and a lot of them have expanded and overbuilt in anticipation of even more stimulated artificial demand. Some uni's will go away never to reopen.

This

Do what I did -- leave the country.

LOL. That's what I tell younguns with huge debts, no jobs and nothing to lose - just leave and don't come back.

Debt is a civil matter and once you've crossed a jurisdictional boundary, it's more trouble than it's worth to track you down. Even a criminal matter, it has to be something serious to get you extradited back.

too bad theres nowhere left to go that's even comparable to the US other than Australia or East Asia

it's against the law for a counselor to suggest that maybe a college loan is a bad idea to a prospective student. why? because maybe some racissss would take the opportunity to discourage a deserving minority from pursuing education.
everyone wants to blame the kids for getting in over their heads but the people they go to for information are not allowed to tell them of any drawbacks to getting loans.

need a sauce for this to redpill others

>But the debt is owed to banks.
Nearly all of it is owed to the government.

>Uni's start shutting down, and a lot of them have expanded and overbuilt in anticipation of even more stimulated artificial demand. Some uni's will go away never to reopen.
bullshit. 30 years ago all the universities switched from being institutions of higher learning and they all became massive real estate operations. iirc, harvard owns over $2.5 billion in real estate.

It's time to MAN UP and PAY for irresponsible people's DENBTS.

Student loan debt is NOT dischargable. It follows you and is exempt from bankruptcy law. You will be hunted down and made to pay. Your family will be responsible for your debt after you die. There is no escape.

As someone that bought into the college scam and ended up developing massive panic attacks out of the blue, I'd love to get a job working on construction/roads. Serves me a hell of a lot better than my 3/4ths finished STEM degree and 40k+ debt I owe.

Trouble is, the state I live in is an absolute shithole with too many fucking liberals spending all the money, taxing the shit out of businesses (which left), and not having enough money to actually do projects because of leeching state workers that stand around doing nothing for hours on end.

I'd gladly go back in time and go to trade school instead of developing a fucking mental breakdown because I was a "fucking cis white male" everywhere I went.

I'm better now but still in debt and looking for gainful employment.

Hope it happens, and I hope, some how, they make universities pay for it. They waste money on, new buildings, my school has 20k students and they brag that their gym is larger universities with 40k students, only thing that's ever busy in there is the fucking food place its pathetic.
A professor at my school got 2 grants totaling 500k and he basically ignored the point of the grants and just wrote some bullshit: nofrakkingconsensus.com/2013/05/05/what-does-half-a-million-in-science-grants-buy-you/

Plus the school basically priced out almost all of the surrounding housing and is making it way to expensive for lower class to live there. Plenty of Mexican families in apartments that students live in, multiple shitty apartment, townhouse areas that are basically slums, meanwhile you pop across town and you have 20 year olds living in multiple private gated communities paying 600+ a month and ultilities.

If you don't believe this is a money grab at this point you're lost. They influence everyone to go to school wether they can pay or not. What's gonna happen when we all have degrees? We'll all have to go back to school to be consider "better" workers. The solution is to get rid of 90% of the some 5000 colleges in the US.

Fuck that and fuck you. I busted my ass off working through college and living like a pauper afterwards so that I could pay off my fucking debt. And then the people who just decided to go to the most expensive schools and take out fucktons of loans and live like children for 4-6 years get to essentially have it all for free? No no no.

>Sup Forums when it comes to UBI: "LAZY FUCKING SHITS, STOP STEALING MY MONEY, GET OFF YOUR ASS AND GET A JOB YOU LAZY BUMS."

>Sup Forums when it comes to forgiving student debt: Yeah I think it's a good idea, I mean I'm 40k in debt right now and it's not even really my fault, I was mislead and from no fault of my own. I should be given free money to pay this off, it's only fair."


Hmm...

P much this desu
The next bubble will be a domino effect that all begins and ends with credit

t. a leaf

What happened in '04?

You think one or two chucklefucks saying to forgive debt is representative of Sup Forums?
Do I have to say it?
>Sup Forums is one person

I can't tell you how much I want the university-industrial complex to crumble. How many fucking billions of dollars do these pieces of shit put into bloated salaries of "professors" who don't do fuck, or for bullshit needless renovations, like tearing down perfectly good halls just to build new ones on top for however much? These universities blow through money like it's nothing. And it's all because of the bullshit federal student loan program that grants loans to anyone with a pulse.

Pop that bubble, and the whole thing collapses. All these bullshit universities close, pool of higher-educated entrants into the workforce lowers to stable levels, and this whole phenomenon of people going to school for 4-8 years and incurring 100k+ in student debt just to not get a fucking job ends.

i heard it on a podcast. if he was wrong he would have gotten a shit ton of emails and tweets and corrected himself the next day. my google fu is failing to pin down this corner of the student financing angle.

Its also racist and anti-semtic to suggest you should organize as a community and enroll you kids in moocs instead of public "schooling" and ((college))

Yeah but they can't get out of paying it without killing themselves

the problem is now the economic crisis that will form and how to deal with it
everyone on pol agrees fuck those gender studies degree holders
>inb4inthewoods

Sounds like Sup Forums is being pretty nuanced for once

Fault goes all around.

Partly on the government for handing out loans like candy, allowing people to go to college without seriously having to consider the costs while also causing tuition inflation
Partly on the highschools that groom ALL STUDENTS to go to college. This has been happening for decades now. It's just causing a vicious cycle that's compounding the problem, as well as devaluing the value of higher education
Partly on the students themselves. Even if everyone is telling you to go to college, it's still on you to figure out what's best for you. We have students taking on 100k in debt so they can get their bullshit basket-weaving degrees. Absolutely no thought for the future, or what jobs they'll get, or how they'll pay their loans. That's on them too.

You want to fix the loan problem attack the cause: spiraling college costs
College costs are completely out of control
20-30 years ago State schools usually cost less than $5k a year tuition
You could get a job at a fast food place and work your way through school if you were responsible enough
Colleges today charge as much per year as they used to charge per degree
The costs are so high because colleges have 4-5 times as many people working at them today-----and none of them are teachers
See all those headlines about a black student group....and their academic adviser?
Or gay, or feminist, or communist, or whatever random left wing division they are pushing this week?
Always with a campus center and full time staff being paid to push the agenda, always with a budget to promote the cause?
The left has turned colleges into monasteries to indoctrinate youth and support the full time professional left with 6-figure tenured jobs with no work responsibilities beyond pushing feminism, white privilege, black lives matter, or whatever the new cause of the week is
Want to cut student loan debt stop approving loans to schools with a greater than 1:1 ratio of administrators to teachers
Stop approving loans for degree programs that can't show real placements in real jobs in the field the degree was awarded
No more 6 figure debt approved for basket weaving degrees promoted by campus sjw's, no more problem

The will pass legislation allowing them to put leins on your property if you have unpaid student debt. This is gonna result in a large rental population. Because they basically cant own property.

please GOD let this happen

>graduated with STEM degree and ~ 30k in loans
>paid back the loans myself by having a fucking job and working
>can't afford a house because commiefornians are flocking here and drove up the housing prices literally 3x what they were 4 years ago

What's really mind blowing is the fact that as the cost of tuition has gone up, the quality of teaching and campus discourse has gone wayy down. The more students have been asked to pay, the more they have been intellectually corralled into a narrower and narrower ideological framework. If you really want to understand the world you do not want those smug people and their pet activists in charge of your brain. But their goal isn't to produce people who understand the world. It's to produce obedient, exploitable human capital for the corporatocracy.

It should really be on the heads of the idiots who willingly loaned thousands to a literal child fresh out of highschool. 18 year olds can barely balance a checkbook, why the fuck did they loan out so much to kids?

Let the bankers fall, then we need to put checks in place to keep kids from loaning out so much willy nilly. We need to make sure this Higher Education Child Exploitation Racket never happens again.

>chillin on the street, smoking a faggit, watching saltybet

Aye, but the question is, how are colleges able to get away with such inflated prices, bloated faculty, etc? What caused the prices to balloon?

It's because of gov't student loan programs. Before, students/parents had to give serious thought to whether college was "worth it" because, for the most part, they were DIRECTLY paying for it themselves. But now we have federal student loans. Any retard gets handed thousands of cuckbucks up-front to pay for college. Yeah, they still have to eventually pay it back, but that's something they can worry about later, past their time horizon. In the here-and-now, they just say "oh shit, here's some money for college!" and go ahead and enroll. They don't even bother thinking about picking the cheapest school because hey, I'll worry about paying this shit off waaay later after I have a job!

And because students are bothering to economize, and students that shouldn't be going to college are getting money to go, it allows the universities to charge more and more. They can charge more, because the students themselves aren't directly paying for it, and they don't need to worry about the actual finances until way later.

Make the schools guarantee the student loans. Then they won't offer fucking women's studies to cynically soak up all that gov't money while knowing they are not fulfilling their end of 'bettering society' bargain.

Easy gov't money is intended to benefit the nation, humanities degrees should not be covered, but it's too late. The schools must start being held accountable and become subject to market forces.

IMO, student loans should be done away with completely. Barring that, the government should instead use some sort of quota system based on supply/demand for different job sectors.

Too many english majors saturating the market? Stop providing loans and incentives for english majors.
Not enough nurses? Redirect more federal loans and incentives towards people going into nursing schools.
It's not a perfect system, because things change and whatnot, but it's certainly better than the system we have now where every english, theater, psychology, and anthropology cuck gets just as much financial help as anyone going into nursing or engineering, etc.

Shades of the same phenomenon with healthcare costs and the insurance industry. Symbiotic parasitism. Tag-teaming the public.

maybe the problem was making elitism accessible.

I was actually going to use that as an analogy. Yes exactly. It's the EXACT SAME PROBLEM as with healthcare. Nobody bothers economizing because insurance picks up the direct tab and you pay indirectly.

But at least with healthcare, the excuse is that you can't really economize emergency events like choosing which hospital the ambulance takes you to.

>How can we change the system to make it more sustainable?
Ban usury.

Actually, college only serves to amplify the (((elite))) that we already have entrenched.

ow the dum

This, the prof I listed in the original comment is the king of this, here

ratemyprofessors.com/ShowRatings.jsp?tid=1351393

That's the same professor I mentioned in my previous comment. The quality of education here would most likely be barely at the high school level, and one is paying some 10k a semester for it.

How we fix the issue in the future and how we fix the current problem are two different things.

In the future? Some kind of universal supplementary/basic income in order to make shit/part-time work a viable option. Massively reduce loan grants, and force public institutions to cull any program that doesn't offer real employment and tangible academic benefits. Develop online learning programs to replace the basic level courses and make higher education effectively free up to a certain point. Peterson has talked about this last point before, and he's right.

Currently? Either we offer widespread debt erasure/easing OR we accept that huge swathes of the millenial generation are going to be debt-slaves to corporate overlords for the rest of their lives. The former will be quite the upheaval, but the latter means that America is cemented as a crony-capitalist oligarchy for the next fifty-plus years.

I mean the elite "culture". It's what sold youth into settling for nothing less than university, and it's what cheapened intellect. Some university courses could be covered in a month, and some skills take a lifetime to develop. The degrees only serve to inflate egos.

>Your family will be responsible for your debt after you die.
Wrong. Your family can opt out of the estate.

>Some kind of universal supplementary/basic income in order to make shit/part-time work a viable option
into the trash you go

Oh yes, you're absolutely correct on that. There's this absolute elitist mentality among people who are anything but elite. As if fucking around with bullshit basketweaving easy-A courses so you can get your shit-tier sociology degree and 100k in debt and jobless somehow makes you better than the guy who is now a self-trained small business owner, mechanic, plumber, etc who makes good money.

>And that is impossible in public transport-free competitive America.

Naw, those idiots like to live in the city and walk everywhere. They don't need cars.

You suckers fell for the trap and no... the government isn't going to forgive shit when you owe them.

Automation is going to utterly gut the jobs market in the West within the next couple decades. Either something is done ahead of time to ease the transition, or we're going to have Biblical domestic upheaval as 50%+ of the lower and working classes lose their jobs.

Student loan debt is USD 1 trillion v.s. 10 trillion for the mortgage market pre-crash. The size is manageable.

Also, most student loan debt is public, owed to states and the Federal govt. Private banks are little exposed to student debt.

Finally, student debt is securitized to a lesser degree than e.g. home mortgages before the 2008 crash.

I like the idea, but I don't like the amount of management it takes to keep something like that accurate and free or bullshit.

Tying it to the market somehow allows it to be managed naturally. Let the schools adopt the risk if they want gov't money. Some schools won't take gov't loans and some will. They'll be responsible for whether the students are viable or not.

I went to a 4 yr state uni. Got a degree in mehanical engineering in may 2016. I started working 3 days after I graduated and am earning 65k a year.

I was 50k in debt. I am currently 30k in debt. I get anxious when I think about my student loans. I should have went to a community college for gen eds and shit. Would have saved atleast 15k.

I would probably commit suicide if I had 100k in loans with a shit job.

>healthcare costs and the insurance industry. Symbiotic parasitism. Tag-teaming the public.
not quite. insurance refuses to pay EVERYTHING to doctors and hospitals. they eventually settle with only receiving around 30% of what is billed to keep it out of court. it's one major fact that is missing from the single-payer discussion.

>mfw in bongland you don't have to pay it back until you earn over a certain amount
>mfw parents are poor as fuck so I get about $8k spare each year
>mfw I had 60k before I even started and didn't need a loan at all
>mfw gonna spend 4 years worth on a porsche bxoster when I graduate

Thanks for funding my lifestyle ukbros

>am earning 65k a year.
> am currently 30k in debt. I get anxious when I think about my student loans.

how much do you owe on vehicles?

>a truck and a trailer and live off the grid for free.
explain

>I need the gooberment to tell me I'm a retard for wasting 70k studying humanities as to not do it


You need to be gassed my man

It's not their fault you busted your ass off for something worthless. Education prices are artificially inflated.

There are already "bailouts" with this whole pay as you earn program. That's what I do and unless I start making a ton more money I well spend the next 20 years not even paying enough to cover interest and then the rest of the loan is forgiven. I feel a little dirty and hypocritical

>50%+ of the lower and working classes lose their jobs.
its survival of the fittest. fuck 'em, they lose.

also there's always the army and a war to be fought with euasia

this so much

new cars are a meme user. stop living beyond YOUR means

why do technophiles and materialists use christian references all the time?

Debt slavery. Indentured servitude.

THE SOUTH WILL RIIIISE AGAIN

>gonna spend 4 years worth on a porsche bxoster

have fun paying those mechanic bills

It's an Intelligentsia scam. Turns out their "long march through the institutions" came with a big fat pay day. EVERY university has been hiring a fuck-ton of administrators for all sorts of useless, or overtly leftist nonsense.
>Diversity Officer, Director of Hispanic Studies, Office of Multicultural Affairs, etc.

They're literally extracting billions from our government through tuition hikes to subsidize their subversion.

>Diversity admins hired ($)
>push leftism to students
>brainwashed students demand more admins for their various oppressed groups
>LGBT admins hired ($$)
>repeat ad infinitum

Students are getting a shit education and being pulled into generational debt in order to pay for the College Diversity Administrators' salaries of ~$100,000/year.

Why a boxster? I'm sure for the money you're looking to spend you can get something better than a glorified Beatle.

>I will spend the next twenty years incapable of amassing capital or significantly improving my lot in life
Sounds fun.

We've always been at war with Eastssia.

It's a society-wide failure. High school advisers push you to go to the best possible school, university advisers want to keep you there are long as possible, and boomer/gen X parents don't understand that having a college education isn't the automatic gravy train that it was for them.

(((They))) have been trying to infantalize and intellectually cripple the masses for decades, and your moronic, myopic tough love rhetoric is just playing into (((their))) hands.

fire just about all worthless administrative roles at the school

the Director of Greek Life on Campus doesn't need a staff of 10 under her.

get rid of all sports that don't make money or cant' be fully supported by the sports that do make money.

college needs to be about school first, everything else needs to take a back seat.

I mean, providing stressed out students safe spaces full of cuddly puppies to play with costs money. Some campus cafeterias serve amazing (and therefor expensive) food. It all adds up and makes your tuition higher than it should be

Jesus that's disheartening. Ironic that these profs and administrators are pushing Marxism, which, the way they package it, is supposed to be a way for powerless little people to resist being oppressed

I am convinced there's some kind of mental illness in the ranks of bureaucracy that makes them project onto others exactly what they are guilty of themselves.

>what are taxes
>what is rent
>what are living expenses

I own a shitty honda civic i paid for in cash for 5k. I take home 42.5k after taxes

college kiddies should get fucking jobs

...

Stop being stupid.

Job market is shit now. Wages have been stagnant for 40 years. Automation is about to pull the rug out from under our feet.