Posted on 10/01/2013 7:37:56 AM PDT by Nachum
lmost exactly one year ago we wrote "The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default" in which we took the latest (2009 three year cohort) loan default data on Federal Student Loans released by the Department of Education and applied it to the total amount of student loans outstanding, which back then was $914 billion. Yesterday, ED.gov provided its annual update - this time to the 2010 three year and 2011 two year cohorts - and to nobody's major surprise, learned that things just got even worse. To wit: "The national two-year cohort default rate rose from 9.1 percent for FY 2010 to 10 percent for FY 2011. The three-year cohort default rate rose from 13.4 percent for FY 2009 to 14.7 percent for FY 2010." Putting this in context, according to Bloomberg defaults have risen to the highest level since 1995. The irony that this is happening in the aftermath of Bernanke's disastrous ZIRP policy is not lost on anyone.
(Excerpt) Read more at zerohedge.com ...
The list, Ping
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Nothing is going to be done about colleges that lead in student default, these are primarily the black colleges. Some diploma mills might be shut down and they deserve it but nothing is going to touch a historically black college. And if they did a cross section survey of defaults I would bet good money blacks lead the way. And I am in no way condemning blacks here, at least they have some balls in some fashion to tell Edu.corp to go pound sand.
Student loan repayment deferal is the only tool left to buy the votes of freeloaders and those worthless to the GDP. Look for 100% subidies for health insurance payments to anyone out of college with student loans to pay back as well. You know.......One of those "fixes" in the Obamacare bill that democrats will get to soon.
In my profession, I make credit decisions all day long..you would not believe the amount of student loan defaults I see. Our program is mostly A credit-prime paper but we don’t consider student loan defaults/collections a major derog.
Ping for later.
Chicago Tribune, 1934
So, let me get this straight. You loan an 18yo money. No job. No plan to pay it back. No history to show that, if they did have a job, that they would be inclined to pay it back. Did I say they were only 18? And you continue to loan them money without them paying back any of the money you have already loaned them.
What could possibly go wrong?
Yes, and this is the group who Obama is counting on getting health coverage.
Where can I pick up a few foreclosed bachelors and masters degrees real cheap? Maybe I can rent them out.
Strange...I was not allowed to default on my student loan...there would have been consequences. What a great world, socialism is so forgiving and loving. May God bless the adolescent deadbeats and give them the future they deserve, stolen from people like me.
Yes. Too bad a home-schooled third-grader can’t run for office. They’d do a much better job running the country than most of our elected representatives in DC.
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