>>1021108 >Everyone should eat fruits >OMG FRUITS BUBBLE SHORT ALL FRUIT RELATED COMPANIES
You're fucking retarded, there is no such thing as college bubble. Also everyone SHOULD own a home, it's personal finance 101 (read biz fundamentals: the richest man in babylon "make thy home a profitable investment").
There might be too much graduates in one domain or another, there might be a shortage in people qualified for manual labor such as plumbers and so on. But in this system you will never see companies hiring people just for the sake of hiring, a minimum number of degrees are required (being associate/BS/MS/Phd/MBA etc).
>>1021108 Everytime there is a loan bubble discussion, you need to realize something has to make a bubble pop.
For the tech bubble, it was the reduction of investor tax on selling stock that made it cheap to hold companies with insane IPOs. Then when cash started to dry up, the biggest sites like pets.com started failing and everyone started getting out.
In 2008, the fact that all the poor mortgage owners were on variable rate loans caused major defaults in 2007 when their interest rates increased. People started defaulting and it took another year for the CDOs to fall apart.
What is the cause to have massive student defaults? We throw around the bubble, but there needs to be a reason massive defaults will happen at once. Rates are at fixed levels. I would think the only way to have this bubble burst is to have the government eat the cost of all the loans.
>>1021131 Tons of people go to college, college recieves funding with expectation of stable or increasing enrollment rates. Degrees begin to lose value from inflation. Once students choose to not enroll in college, first colleges will attempt to trap people in seemingly beneficial long-term enrollment plans, and then the bubble bursts as colleges fail to meet payments to staff and die out while leaving the remaining students trapped on the hook.
The mechanism is going to be the huge volume of outstanding debt that is backed by degrees that don't create a significant increase in expected income.
The student loan system is ridiculous, because all it requires to get a loan is to be enrolled in an accredited college. Want to borrow $50k to get a degree in Nuclear Engineering? Okay, no problem. Want to borrow $50k to get a degree in philosophy? Okay, no problem. There's no evaluation of expected income stream generated by the debt. Who else would ever adopt this business model.
The default rate is obscene for two groups: those with liberal arts degrees and those attending for profit universities.
The way I look at it is that the real reason for college or university loans are to make young people think very carefully about the actual value they get out of having that piece of paper with a qualification on it really has. A lot of people were going through this system for free just due to the fact that everyone else was and it it was "the thing to do." That needed to stop so fees were brought in to stop that.
With a house mortgage, that can just be reclaimed and sold on to someone else but these types of loans are tied to the individual, like taxes. You can't ever get out of it, they don't "take their pound of flesh" like the old days, they will just hold you to your debt to the end of your days. No matter what you do, you will always owe that debt, it is tied to you, forever.
Student debt is not discharged during bankruptcy. Shit they can even go after your social security money if they want
What is/will happen is as people acquire more debt to go to school they will put off more and more things in life because they are burdened with debt repayments.
So this will just put an overall negative pressure on the economy as more and more people have to service their debt loads while they spend less on themselves/buying shit. Homeownership ? Forget it retirement ? whats that ?
Maybe its time to revisit making student debt dischargable ? Maybe there will be a brain drain as people decide to just flee the states and their debt to go elsewhere.
honestly the education system is being run by idiots for years.
if its not practical and useful don't study it at school, do it at home. don't go to cs because someone said computers are the future, the east is catching up to everything the west is in terms of education. most of us will be replaced by hindus/chinks sooner or later
>>1021247 It's pretty bad man. I'm lucky that my parents saved for my student debt, but if I had to pay for my Public In State College costs at the end of 4 years I'd be about 50k in debt I would say after Housing, Books, Tuition, all of it.
The average debt is like 35k or something though, which is a metric shitload of cash. If you try to pay it off as fast as possible it could be taken care of in 5 years. Too bad people are retards and let the interest accumulate.
>>1021247 I can't say since I don't live in America. it can get stupid expensive, I remember on personalfinance a dude had 1M in debt for doing dentistry + specialization He accrued more in interest in a day than what the average american makes.
Sure 1-2 years of work sounds reasonable if you can live in your car and/or make some very hard sacrifices. Those kinds of sacrifices necessary to repay your debt quickly most people just cannot do. Paying off the minimum is all they can afford and with that it will take them almost a lifetime to do so.
Sometimes its a bit predatory as well, like if you can't make payments right now or are tight on cash or some shit they get told to apply for forbearance, which gives you some breathing room, and then in the fine print what is buried is that any interest accrued during that time period gets applied to your principal.. So now you come back 12 months later and find your loan has ballooned even more and monthly payments are nearly impossible to meet.
>>1021261 >>1021266 Yea I'd say 5 years is if you live incredibly frugally and focus on the debt first and foremost, which nobody practically does.
These figures are all off the top of my head btw but you can definitely find them elsewhere online. And these are just my estimates for an In State Public College which is the route about only 50% of people take. Many others go either out of state or into Private colleges.
The Ivy Leagues can amount to 160k more or less at the end of 4 years.
>>1021274 goddamn why are your unis so low and your car and food so high?
Here at least the Uni market is flooded with people. I tutor math at my Public colleges and you won't believe the morons that get into College in the US. Some people don't know how to find the Area of a Rectangle, turn Inches into Feet, absolute basic algebra, etc.
Uni is seen more as a thing that EVERYONE has to do and so much is spent on useless gyms, new dorms, new administrations, etc.
>>1021278 mostly because of heavy taxes and basically the car import industry is literal mafia here its mostly greed, i heard about clothing brands bankrupt just because of online shopping which is still 200-300% less including shipping and taxes business owners that can't price their shit gets taken down eventually unless their services are crucial
>>1021286 he probably was, regulation is corrupt and if you want to change something you would have to use brute force. our economy is headed towards doom its probably our own fault,let us bomb and reborn
>>1021292 yes, you can have any sports cars because our roads are small and unfitting for them. also if you are one of the few importers of some product then you can criminally price it without regulations, most of the government services will be privatize eventually which will further push things down
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