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Banks are bailing on the student loan business and it couldn't come at a worse time
Business Insider ^ | 04/15/2015 | Jonathan Marino

Posted on 04/15/2015 12:22:31 PM PDT by SeekAndFind

Some of the world's biggest banks, including JP Morgan, Bank of America and US Bancorp, are withdrawing from the student loan market. That's according to a series of reports over the past couple years.

It couldn't come at a worse time.

That is because it coincides with a rise in students who want student loans.

And, the amount of money those students want to borrow is also going up because the price of of a college education keeps rising.

This chart tells the story:

Borrowers & average balance per borrower
Federal Reserve Bank of New York -- Staff Reports


April 2014 NY Federal Reserve report shows borrowers, and their average balance, has continued to rise.

Why are the banks pulling back on student loans?

Right now the Federal Reserve is keeping interest rates low.

That means it's cheap to borrow money, and so the number of student loans is ballooning.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: banking; banks; education; finance; studentloans; tuitionbubble
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To: SeekAndFind

Why extend a student loan to an idiot majoring in Gay Eskimo Mythology who will never be able to pay it back? Loaning money is a business, not a charity.


21 posted on 04/15/2015 1:57:44 PM PDT by Dr. Thorne (The night is far spent, the day is at hand.- Romans 13:12)
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To: SeekAndFind

Well, they’re doing the smart thing.

Besides, the system is untenable. Let Obama get blamed for collapsing it.


22 posted on 04/15/2015 2:39:51 PM PDT by TBP (Obama lies, Granny dies.)
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To: SeekAndFind

Pricey tuition. My year [74-75] at technical school in Toledo cost $1400 for the year, and that included a rudimentary set of hand tools, textbook and shop fees.


23 posted on 04/15/2015 2:40:03 PM PDT by W. (3 Disqus sites, Cheezburger.com and [The Internet] Archive.org all censor conservative comment.)
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To: stephenjohnbanker

> Nobody will or can forgive a trillion dollars, and not every 20 something went to college.

And they shouldn’t but he Millenials believe that Obama can do no wrong and are part of the “collective” hive mind. They believe just about anything he says save a few that possess some modicum of common sense


24 posted on 04/15/2015 2:46:45 PM PDT by jsanders2001
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To: stephenjohnbanker

> Nobody will or can forgive a trillion dollars, and not every 20 something went to college.

And they shouldn’t but the Millenials believe that Obama can do no wrong and are part of the “collective” hive mind. They believe just about anything he says save a few that possess some modicum of common sense


25 posted on 04/15/2015 2:47:01 PM PDT by jsanders2001
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To: jsanders2001

Brainwashed. Where are their parents during this 16 years of brainwashing? They can’t all be lefties.


26 posted on 04/15/2015 2:51:08 PM PDT by stephenjohnbanker (My Batting Average( 1,000) (GOPe is that easy to read))
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To: stephenjohnbanker

> Brainwashed. Where are their parents during this 16 years of brainwashing? They can’t all be lefties.

2 years of unversity indoctrination and peer pressure will beat 18 years of good upbringing by parents, initially..that is until they go through a crisis or hard times then suddenly their brain is awakened from its liberal coma


27 posted on 04/15/2015 3:02:56 PM PDT by jsanders2001
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To: jsanders2001

” 2 years of unversity indoctrination and peer pressure will beat 18 years of good upbringing by parents,”

Maybe, but my brother and I went to universities in Boston, where it is a felony to espouse conservative ideas. We did just fine.


28 posted on 04/15/2015 3:28:40 PM PDT by stephenjohnbanker (My Batting Average( 1,000) (GOPe is that easy to read))
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To: Nervous Tick

“Or to buy drugs and alcohol.”

I quit college for a year and worked as a line inspector at a factory. Earned enough dollars to pay off my student loan and return to college for my masters. Also had money left over to purchase a decent amount of wine, women and song.


29 posted on 04/15/2015 3:32:54 PM PDT by sergeantdave
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To: stephenjohnbanker

> Maybe, but my brother and I went to universities in Boston, where it is a felony to espouse conservative ideas. We did just fine.

Lol


30 posted on 04/15/2015 3:39:48 PM PDT by jsanders2001
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To: Boomer One
"Thought the Feds took over student loans."

Me too---->Feds take over student loan program from banks

31 posted on 04/15/2015 3:41:33 PM PDT by moehoward
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To: BenLurkin

Agreed. Students do not need more debt. Now is a good time to stop. more debt just means rising tuition costs anyway


32 posted on 04/15/2015 3:52:55 PM PDT by PGR88
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To: MichaelCorleone

No one should get a loan for a worthless degree in socialist studies. That is cruel.


33 posted on 04/16/2015 3:09:57 PM PDT by SaraJohnson
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