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http://files.consumerfinance.gov/f/201207_cfpb_Reports_Private-Student-Loans.pdf
MANY BORROWERS ARE STRUGGLING TO REPAY THEIR PRIVATE
STUDENT LOANS.
In 2009, the unemployment rate for private student loan borrowers who started school
in the 2003-2004 academic year was 16%. Ten percent of recent graduates of four-year
colleges have monthly payments for all education loans in excess of 25% of their
income. Default rates have spiked significantly since the financial crisis of 2008.
Cumulative defaults on private student loans exceed $8 billion, and represent over
850,000 distinct loans.
http://nationalmortgageprofessional.com/news30154/study-finds-housing-slump-tied-rise-student-loan-debt
New analysis of government data by the National Association of Home Builders (NAHB) reveals a connection between rising student loan debt and the onset of the housing slump, and offers yet another example of how lower home values have hurt millions of middle class households and threatens the fragile economic recovery.
“The rising student loan debt problem is another consequence of the housing downturn,” said NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “As more and more parents face tighter budget restraints as a result of lower home values, this is forcing an increasing number of students to take out loans for tuition, essentially shifting some of the burden of paying for college from parents to students.”
The link between rising student loan debt and the start of the housing crisis comes on the heels of a recent report from the Federal Reserve showing that U.S. household wealth plunged nearly 40 percent from 2007 to 2010 as a result of declining home values.
“The rising student loan debt problem is another consequence of the housing downturn,”
boy! thanks to the NAHB for telling us that it's not about super high tuition and high unemployment for the young. it's just about housing! these guys understand so little about economics, they are able to pull this one with a straight face.
The NAHB has it backwards here. Student Loan debt is hurting house-hold formation and the ability of a new generation to become home buyers. I guess one could argue that pre bubble parents could take out a 2nd lien on their homes, but we all know how well that turned out.
Don't worry, if Obama gets re-elected all student loans will be forgiven! LOL!
We'll probably pay the banks with tax payer funds to forgive balances. The new American way.
The ex-students will probably earn millions as cream cheese vendors, and repay the loans themselves. The new American whey.
It's not even 10am on a Sunday morning over there in N.Y.C.
What time do you people get up?!
Hi trUth!
It's an exceptionally beautiful day here today.
We are sun creatures Truth.
5:44am Monday (EDT) - Sunrise in New York, NY
In Barcelona the only people up so early on Sunday are churchgoers and the milkman (there still are milkmen in Barcelona!)
Are you guys milking cows?
No comment.
> In Barcelona the only people up so early on Sunday are churchgoers and the milkman (there still are milkmen in Barcelona!)
not so! you'll notice that during summer parents take their kids early to the playgrounds while it's still fresh, like i just did.
Riversider: Back in the day, college students there grew and sold "Gainsville Green".
They paid their own tuition, rent and bills.
notadmin: Are you here, too?
Parents take the kids out early to playgrounds before the heat of the day sets in but not usually on Sunday.
Most wait until the tourists leave the beach by noon and then head over for a swim.
Pre-noon outdoors on summer Sundays here is mostly the tourists.
Of course, I'm still sleeping early in the am but that's what I've been told.
Out to dinner at 10pm. By the time we get home it's after 2am.
This is a late night town.
> notadmin: Are you here, too?
i'm currently in manhattan, but i've been all over the mediterranean and come from that culture myself. we all do that and consider that kids need & deserve their daily dosis of running, jumping, ... without suffering the heat. mediterranean culture masters human rights applied to kids.
Yes, my friends with kids here have lots of activities.
(and are up earlier than I am). They go out around noon on Sunday and are busy all day.
Tibidabo amusement park is big fun.That and the beach are their 2 big summer outdoor spots.
Bar Kasparo is nice with a playground outside.
Museu de Chocolate is good for cloudy days.
If the kids' friends are out in the playground early morning on Sunday, they don't seem to care.
They sleep late on Sundays.
I like the Sant Antoni Book Market for a nice Sunday stroll. It opens at 9am and that's early for Barcelona on Sundays. I see people with kids there which surprised me at first but then I saw how kids in Barcelona love to read books. For fun, not just schoolwork.
Here's a sample Sunday morning in my friend's 2 kid family:
6am: everybody sleeping
7am :everybody still sleeping
8am: everybody still sleeping
9am: kids wake up, have some juice. Watch t.v.
9:30am: parents wake up, breakfast is served. It is a half-hour at the table. With talking. No t.v. on in background.
10am: the kids neaten and tidy up their bedrooms. The boy is 6, his sister is 8. The parents clean-up around the house.
10:30: shower and dress
11:am: parents read the newspapers/computer time
and the kids get 1/2 hour on the computer. (This is their only computer activity of the day)
11:30am packing up the beach gear, or packing the car if taking a day trip.
12 noon: and they're leaving to go out for the day.
The kids take a book with them. No computer/video games.
Mediterranean culture (or maybe it's just in Barcelona) seems to put value in reading books.
I also noticed that the kids here don't eat much junk food.
At another friend's house, they don't even wake up to do anything until the grandma comes over after church.
Bar Kasparo is closed on Sundays now. There are other tapas places without indoor seating.
Everybody eats outside. Very nice with kids.
back to you, Riversider...
People with private student loans are not the class of people who buy NYC real estate.
dealboy: what time did you wake up today?
Riversider is taking a siesta. He gets up early.
Not just student loans
[Americans borrow heavily from 401(k)s but loan defaults are up]
http://www.latimes.com/business/la-fi-401k-default-20120717,0,4038902.story?track=rss&cid=dlvr.it&dlvrit=52116
Bullish
Interest rates in 401(k) loans are lower than those on credit cards or other types of loans. In spite of this, the quantity of 401(k) loan defaults is still higher than normal. Many people also have trouble paying the loan back once they take it from their retirement funds.
http://online.wsj.com/article/SB10001424127887324432004578306610055834952.html?mod=WSJ_hps_LEFTTopStories#project%3DBORROW021620130216%26articleTabs%3Darticle
What is quite stunning is that there are 553 colleges in the US that have a student loan default rates of over 25%
don't worry, if there are enough graduates start deadbeating, our dear obama will bail them out too
Higher education is the biggest legal scam going right now in America.
Too many institutions
Higher education is need, but this society is sick, we promote junk and supress humanity
"Higher education is need"
Not for everyone.
I agree with NYCMatt.
I agree with huntersburg.
I agree with alanhart.
Higher education is the biggest legal scam going right now in America.
Students never believe they will default
Schools seeking profit over educating students
Federal Gov't granting special status to student loans
Recipe for disaster.
nymat, higher education is a need for every one in a civilized society, but of course it's not the path our country is heading. as a rogue state, you are right that we don't need more higher education, but need more elements of Anti-intellectualism, such as deadbeating, illegal immigrants, drug dealers, etc
"higher education is a need for every one in a civilized society"
No it's not. Not, at least, at the price point the industry is demanding.
For many, many people, trade schools and apprenticeships make much more sense.
matt, what price point the industry is demanding in your mind?