Posted on 03/26/2013 9:52:55 AM PDT by rightwingintelligentsia
WASHINGTON (Reuters) - Banks wrote off $3 billion of student loan debt in the first two months of 2013, up more than 36 percent from the year-ago period, as many graduates remain jobless, underemployed or cash-strapped in a slow U.S. economic recovery, an Equifax study showed.
The credit reporting agency also said Monday that student lending has grown from last year because more people are going back to school and the cost of higher education has risen.
"Continued weakness in labor markets is limiting work options once people graduate or quit their programs, leading to a steady rise in delinquencies and loan write-offs," Equifax Chief Economist Amy Crews Cutts said in a statement.
(Excerpt) Read more at chicagotribune.com ...
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Student loan write-offs hit $3 billion in first two months of year
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The students still owe the money.
I’m sure they’re on the up and up.
Too bad they can’t bundle them up and sell them off all over the world as “securities”. All with a AAA rating from Moody’s, of course. Opportunity missed.
Wasn’t this part of the ‘cornhusker kickback’ deal with Obammycare?
Yeah, they still owe the money, and many will pay a sum 2x or 3x over principal back during their lifetime to Dept of Edumacation. Never more true than now with high youth unemployment coupled with depressed wages (extending repayment schedule) for the foreseeable future.
Without students loans, most colleges would close.
I’m done in a year. I hope I can get a decent job.
And it’s really just beginning. Obama has set up perverse incentives whereby if you simply make very little money for the decade after you take out the huge loans, you can walk away with having paid virtually nothing on it.
If most colleges would close, we wouldn't need so many student loans.
That’s because they’ve built their business model around federal funding for the last forty years.
The idea that taxpayers are forced to pay at virtual gunpoint for spoiled, marginal students to have four to 10 years of the on campus experience is simply offensive. Technology has progressed to the point where that is a luxury that some people can afford, not what the government should be providing for all.
ping
This group of write-offs were of private college loans made by commercial banks. These can be extinguished through BK. It is the federal loans that cannot be resolved in this fashion.
But, you can be sure that the performance of government insured loans is just as bad as that of private debt. It’s all just another wealth transfer from you to an Obama constituency, in this case the least productive sector of our economy: college professors and the even more useless dimwits who “administer” them.
More evidence the economy has recovered. /sarc
Where this is leading is college tuition as an entitlement.
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