Posted on 06/11/2013 7:24:36 AM PDT by SeekAndFind
The student loan debate in Congress is bringing to the forefront the student loan crisis plaguing our nation, as well as the financial instability of academic institutions in the United States.
Relative to the student loan crisis, the New York Federal Reserve concluded in its 2012 report that the obligations for student loans total approximately $1 trillion, or approximately $25,000 per graduate.
The report notes that there are over 15 million borrowers under the age of 30, while the total number of borrowers is almost 39,000,000. The delinquency rates on the loans range between 10% to 20% for the various age categories. Surprisingly, the report indicates that there are 2.2 million borrowers over the age of 60, with an average balance due of $19,000. The delinquency rate for these borrowers is approximately 12%.
Concurrent with the higher student loan balances, college enrollment rates for students have declined 2.3% in 2013 compared to 2012. This decline is the first downward trend in enrollment in decades.
There are many factors which have contributed to the decline in college enrollment. Major factors include rapidly increasing tuitions, higher unemployment rates for recent graduates, and the debilitating effects of student loan repayments on students and their parents.
The 21st century is the first time in our nation's history in which the parents have had student loan debts and obligations and now have children considering entering college. The experiences of these parents as well as the debt obligations themselves have discouraged their children from incurring too much debt.
Additionally, tuition increases for the period 2001 to 2011 have averaged 42% for public institutions and 31% for private institutions. Such increases have significantly outpaced increases in income for the families supporting students as well as for the students themselves.
(Excerpt) Read more at americanthinker.com ...
yeah my kids won’t imbibe the poison pablum being passed off as education at our “institutions of Communist training” and they are both really brilliant and test very well
There are dumber things than college debt, but only a few.
I saved and pay cash for my kids to go to college. Graduate school must be paid by them without debt.
I'm surprised how low the average loan is at all age levels. It should be doable; it's not much more than is the average auto loan. JMHO
I think I would put Federal Debt in that dumber category.
I wish more people were able to make the important link here.... this bubble was created by government, greatly inflated the price of college degrees (and academics salaries), and has created another debt crisis my children and grandchildren will have to pay.
Government is the problem. Once again, they will hold themselves out as the solution. The idea that everyone needs a degree is absurd.... if this was true, we would not have so many with 6 figure school debt working jobs that will never pay that debt.
The die was cast when federal government intrusion and the injection of taxpayer money altered the role and function of colleges.
They were primarily institutes of higher learning for those equipped to benefit from an advanced education.
The federal government has transformed them into just an extension of Head Start.
It’s going to be fun watching all those Liberal college perfessers looking for real jobs.
In addition, paying students who were not Eric Holder's people were forced to pay higher tuition to subsidize Eric Holder's people.
This is a result of the government promoting college for everyone. Many business majors get out of college and find the only job they qualify for involves flipping burgers.
debt crisis my children and grandchildren will have to pay.
Preplanned with the intent to create more dependent on govt voters.
Except for one thing, as they pare down, first thing will go will be the science programs like pre med, engineering, and the like. Last things to go will be ethnic studies, womyn studies, athletic degrees and the like because that is how they woo in money from the gov and from the gullible.
Georgia Tech, one of the top engineering schools in the country, just started a program that costs about $7000 for a master's degree.
http://www.dlpe.gatech.edu/dl/
Teachers unions have prevented online education up until now, but they are about to lose the battle and the war.
The leftists are infested at the trough of academia and have successfully plundered the younger generation's wealth by compelling them to take out loans which these youths repay over the course of their lives. Of course the loans taken out by these youth go immediately into the pockets of the leftists at these universities. That is the obscene inter-generational transfer of wealth that is immoral, especially in view of the fact that many of these kids will be no better off with a degree and with potentially life-long debt.
It is an immoral scam.
My alma mater tried to price the engineering college out of business. Said that STEM degrees cost to much, and BA’s cost very little.
Was a great plan, till 90% of the donors who were from the Engineering college threatened to pull their funds.
More and more young people will get their training through on-line credential programs and quickly and cheaply work themselves into reasonably secure places in the workforce.
Meanwhile, the top tier universities, who all seem to have endowments they can feed off for decades to come, will continue to choose those who will lead our governments, military establishments, and corporations.
We'll be a banana republic without the bananas.
Yes, a most insidious wealth transfer. The middle class as usual is the victim. The lower classes go for free, and for the very wealthy it’s a drop in the bucket. We, the middle class are financing our own destruction. Paying to keep liberal democratic loyalist on the dole while they are brainwashing the next generation. Craziness
Obama to help students with loan repayments: White House
http://www.reuters.com/article/2011/10/25/us-obama-students-idUSTRE79O7HZ20111025
The goal is to pay for college for those who will go to work for government when they graduate.
Free “education” and a guaranteed job. Of course, this falls right in line with the communist goal of not allowing anyone to earn a living outside of “the party”.
Obama orders changes to student loan payments
Oct 25, 2011
The Administration is moving forward with a new “Pay As You Earn” proposal that will reduce monthly payments for more than one and a half million current college students and borrowers. Starting in 2014, borrowers will be able to reduce their monthly student loan payments to 10 percent of their discretionary income. But President Obama realizes that many students need relief sooner than that. The new “Pay As You Earn” proposal will allow about 1.6 million students the ability to cap their loan payments at 10 percent starting next year, and the plan will forgive the balance of their debt after 20 years of payments. Additionally, starting this January an estimated 6 million students and recent college graduates will be able to consolidate their loans and reduce their interest rates. ...
Or you could apprentice as a plumber, electrician or auto mechanic, among other trades. But then you’d have those dirty hands and the elites would call you stupid.
RE: Obama to help students with loan repayments: White House
TRANSLATION: Obama will use tax payer’s money ( your money and mine ) to help students ( many of them studying useless fluff course ) with loan repayments.
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