Student loan debt crisis:
How are businesses and the government thinking about how to deal with student loan debt? It's at like 1.3 or 1.4 trillion now.
I think most people don't realize just how not paid back that shit's going to be in 30,40,50, or 100 years. It will have to be forgiven somehow or people won't be able to participate in the economy.
What do you all think? Is it a bubble that will burst, or is it less of a crisis than we're led to believe? Or is it a catastrophe brewing slowly?
You cannot effectively default on them. Additionally, there is no feedback loop like there was with the mortgage crisis.
Nothing will happen.
Not sure what you mean.
If you mean why, because if it was easy to default on student loans everyone would do so after they get their degrees.
If you mean how, because that is how the law works in the US. Student loans are the only type of debt you cannot default on without going through a fuckton of trouble.
This narcissistic generation won't do anything, a bunch of man children that detest having any agency.
this is a really good question mate
My ultimate projection for this is possibly massive loan forgiveness programs that will be linked to shit tier works programs. Something like a couple years in the military or something along those lines.
That or we will see a massive bubble pop and absurd amounts of people will lose their houses and material wealth to the rich. Everyone will live on a 'rent' system eventually. Noone will own anything.
In essence we will live in a complete dictatorship. A.k.a the final result of capitalism.
pretty funny in a black way if you think about it.
Millennials aren't just narcissistic though, many of us have grown as people by having to deal with economic and environmental hardship. We deserve more credit than what's often given to us.
>take it mortgage for amount of student loans
>pay student loans with mortgage
>default on payments
>shit tier works programs
Those already exist. See:
It's pretty shitty though, because you have to make 120 consecutive on-time payments, which is what the original term of the loan anyways. Only useful if you got a worthless degree.
>pretty funny in a black way if you think about it.
I guess, but I'm feel more anxious about the loans I'll probably never be able to pay back since I won't be able to nab a tenure track position anywhere. Those gigs are drying up and being replaced by adjunct positions, which pay shit and offer shit benefits.
The loan debt is going to either crash out catastrophically or be mitigated in some way by the federal government. And yes, everyone will rent. Ironic that we capitalists champion private property but that is being taken away from us like in communism.
>good jobs going away, replaced with bad jobs filled with the interchangable masses
Overpopulation, mate. Give the system a good look and you'll see almost all of our problems stem from it.
If I killed literally half the world right now in some sort of psychotic death ray bullshit, it wouldn't do much. We'd be back to the 1965 population.
I agree that overpopulation is a problem, but I don't know how to solve it without the aforementioned cosmic death ray.
We have the potential to end this shit if we accepted automation as our rightful savior and gave people a spending stipend to fuel the economy rather than firing them and making them destitute. Doing so would lower birth rates as well.
Coincidentally, have you all taken a look at the Georgia guidestones? Their insight is simple but profound.
How are we going to deal with it? Easy.... give me my money.
Government isn't in business to protect people from the consequences of their own bad decisions.
And should the government take sides against the people who loaned the money in the first place and give it to the the people who don't want to pay it back? No.
>How are businesses and the government thinking about how to deal with student loan debt?
why would they? it's not their debt and not their problem. it's on the chumps who thought that paying a gorillion dollars for liberal arts degrees was a good deal.
There will be no crisis, unless Bernie wins president and forgives the loans. Then we're fucked.
Student loans are not bankruptable, so all you're left with is broke people for many many years.
Over population isn't a problem, over production of live stock and forest deforestation is the problem. And no they're not the same thing.
>As of the second calendar quarter ending June 30, seriously delinquent student loans (which the FRBNY describes as those whose payments are 90 or more days past due), increased to 11.5% of the $1.19 trillion dollars' worth of education loans, versus 11.1% in the first quarter.
and that shit is old, seriously at this rate the economy is fucked. the interest rates on these are not high enough on these to make up what's going default
asshats like this:
forget that unlike the mortgage crisis that had real collateral behind each loan, student loans have literally nothing backing them. none of the costs can be recouped and reinjected into the economy again. it's a sink hole that's only getting bigger and it's going to start sucking everything around it inside of it. people will stop buying cars, stop buying houses, stop starting families, stop spending money altogether, and everyone will start losing their jobs because there's no more money in the economy anymore.
I think occupy wallstreet was a bit of an attempt to lash out at this situation. I don't know that we will see much more than that.
It is a generation that looks for an easy way out by default, but in this case there is none. I imagine they will learn to cope and as they slowly rise through the workfoce will be able to pay them off.
As for businesses, I don't know what the fuck they could do. I mean more money in the economy would be good, but I don't see Clancy's Custom Candles paying off student loan debts in order to sell more vanilla bean candles
Businesses can fail in such a way that there's no collateral to recollect but you don't see anyone arguing to make those loans nondischargeable.
Kids should incorporate before taking out school loans and dissolve the corporation when they come do. It's the American way.
They don't. They're schemed with the bankers (under Bill in the 1990s) to make debt virtually inextinguishable.
Expect to dig a lot of holes wherever the local politbureau chief tells you to. Maybe with spoons rather than shovels.
They're basically embracing the sorts of policies that became the feudal system.
I'M GOOD NIGGA. FUCK THE Jew-""U"" S A !
I'LL LIVE GOOD IN ANOTHER COUNTRY WITH MY EDUCATION WHILE YOU LIVE A WAGE SLAVE FOR THE SAME EDUCATION.
I'D RATHER CONTRIBUTE TO A DEVELOPING NATION AND GROW WITH IT THAN DIE IN A DYING ""DEVELOPED""" COUNTRY AS A FUCKING SLAVE.
Step 1: Conservatives get voted into office
Step 2: Pass legislation to limit CFPB's power/repeal Dodd Frnak
Step 3: US Gov makes all NSA and related personal information available to private debt collectors
Step 4: A new financial boom blows up that makes the old debt buying model look like table scraps.
Step 5: No one can continue to voluntarily defer their debts as their wages are perpetually garnished by lawyers and county marshalls on behalf of student creditors
I feel like identifying by age cohort is about as retarded as it gets. Any difference between generation is weakly correlated and usually the result of age rather than the time period they were born/how they were raised. For example, there's a clear trend that the median person becomes mroe conservative as they age, so the idea that the younger generation would be the most liberal generation is actually intuitively expected, not just the result of some outside force.
The fact that every generation is the worst according to teh generations before it and taht this has been the case as far back as recorded history goes reveals a great deal about this.
This. This is the word people should use. People on this board are so illiterate when it comes to what makes a bubble. Student debt isn't a bubble. Perhaps the value of education is, but even then it's a very slow-boiling one. Student loans aren't like mortgages. Where's the collateral? Where's the market speculation? Loans will simply reduce consumption in the long run, slowing economic growth. Just like health insurance, rising gas prices, etc.
Step 6: The declared domestic terroristic "Patriots" of the U.S have enough of the Financial terrorism from large institutions and the asinine income inequality. People literally begin to execute banksters and delete financial data from the computer servers.
It is time friends. The NSA is worthless once people start rising up in numbers.
I think a check on population is coming one way or another, self inflicted or natural. It's funny how the economists freak out now about only 6% growth in China or whatever, they haven't even seen the negative yet.
Then what, invest in debtor prisons? Can't get blood from a stone except in a prison environment. Maybe short their debt somehow whilst synergizing the general angst?
>Government isn't in business to protect people from the consequences of their own bad decisions.
Western governments have created the framework we all live in. No, it is not a 70-year old sekritt plan. It is the sum of generations of politicians AND VOTERS who did what they thought was right then.
And companies uses uni degrees as a way to make it simpler for them to pick applicants. Not because they really need the skills.
I don't know man. Our privatized propaganda machine is pretty effective at distracting people and muddying the waters.
Also occupy wall street tried that, but then the government created SJW's as a psyop to infiltrate and subvert the movement. There were even leaked FBI documents where they were prepared to shoot the protesters with snipers if they became too influential, but it never came to that because the SJW subversion worked.
>tfw the jews will always win
>tfw /pol/ defends jewish bankers and attacks people who oppose them
>tfw the accuse the people trying stop the jews of being jews themselves
And then what? That shit is never getting paid back by the impoverished workforce. All the money is at the top now; the system can only topple.
You are simplifying the issue far, far too much and painting it in a narrow (and stupid) light. People HAVE TO HAVE college educations to make any sort of living wage nowadays; it is the new high school. It's a legitimate impediment to life, liberty and the pursuit of happiness to be saddled with 50-150K in loans just to be competitive in the workforce. The loan debt should be forgiven.
THIS. We cannot participate in the economy when all we can do is pay interest + a tiiiny bit of principal.
Again, you're simplifying the issue. There are legitimate careers that pay shit now and there is no hope without some sort of forgiveness.
>so all you're left with is broke people for many many years.
And this will drive the economy into the fucking outer core. It must be forgiven somehow or no one will participate in the economy.
I feel like this person gets the impending catastrophe. The student loan debt is keeping people from starting their lives. It's unjust.
>I imagine they will learn to cope and as they slowly rise through the workforce will be able to pay them off.
Not if current policies have their intended effects. We will create a nation of wage slaves; no one will truly be free to buy what they want anymore.
No one knows to do this. It is infuriating.
I agree with this. We are headed for political upheaval and revolt if this debt isn't forgiven.
Propose literal indentured servitude to student loan creditors?
The crazy in me wants to believe this.
Any enforcement mechanism is worthless, be it KGB, Stasi or NSA once a critical point is reached - because then number of protestors grow exponentially. Its not enough to destroy the reputation/physically dissapear the leaders anymore because every 2nd Joe is the leader. All of them try to prevent this critical point from ever being reached, and all have/will fail.
If this is still an issue when I'm 35+, I'm going to campaign for the US presidency on a platform that advocates for military conscription to recoup government losses from student loan default. Screencap this.
I can see a pretty severe social conflict where degree mortgagees will be at odds with those that don't have student loans. As a tradesman I have no intention of complying with a movement towards free post sec
> nothing will happen
government debt is going to become an even bigger problem than it already is.
Despite the consumer capitalism market argument, eventually it will be a problem when America owes the whole world multiples of its annual GDP.
I don't think you needed to reply to every single post in the thread to say
>I think student loans prevent people from participating in the economy
My counter is that student loans are just another monthly expense. It's like having a car note. And plenty of people have those and still participate in the economy.
I mean what is the most you really think people are paying on these loans each month? $500? $700?
I guess you're right, but I feel very butthurt so I went overboard and replied to every previous comment.
They're a monthly expense that, as one other anon put it, is a drag on the economy. The monthly expense of having a car or mortgage is part of the economy, whereas student loan repayments simply go to creditors to balance their books. They don't actually represent anything.
People try to pay these loans back, but a significant number of people are un- or underemployed and can't make the payments without sacrificing their life quality. Which you could call a "boo fucking hoo, get back to work" situation, but in this case it is significant and delays starting a family, buying a house, a car, etc. So my counter-counter to you is that while student loans are a monthly expense, they are a monthly expense that you'll be paying for 30 god damn years, and each installment will be as much or more than a car payment. So you wouldn't be able to afford a car, meaning your housing options are limited because you have to live close to work.
Also related is that wages are either stagnant or decreasing, meaning you can't just save up for a down payment on a house, you only have money for rent. Your money is no longer yours in this situation. The only option if you want a better lifestyle or if you want to be happier is to go further into debt via credit.