Student loan debt crisis: How are businesses and the government

>>1060064
World War 3 is coming soon son.

hope you been doing your crunches

File: Screenshot from 2015-12-15 10-31-45.png (87KB, 594x572px) Image search: [Google]

87KB, 594x572px

You cannot effectively default on them. Additionally, there is no feedback loop like there was with the mortgage crisis.

Nothing will happen.

>>1060089
>You cannot effectively default on them
Why is this?

>>1060089
>nothing will happen

We're creating a nation of wage slaves who will eventually revolt somehow. In my opinion.

Something will happen, I just don't know what.

File: memes.jpg (10KB, 247x300px) Image search: [Google]

10KB, 247x300px

>>1060091
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.


>>1060094
This narcissistic generation won't do anything, a bunch of man children that detest having any agency.

>>1060064
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.

>>1060105
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.

File: image.png (2MB, 750x1334px) Image search: [Google]

2MB, 750x1334px

>>1060064
>take it mortgage for amount of student loans
>pay student loans with mortgage
>default on payments
>declare bankruptcy
>profit

>>1060118
>shit tier works programs

Those already exist. See:

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service

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.

>>1060122
...and lose whatever collateral you had gotten the mortgage for in the process

>>1060086

I have!

>>1060118
>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.

>>1060132
>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.

>>1060135

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.

>>1060089
You could move to another country. Nobody is going to spend the money, time and effort required to sue in another country to collect on a loan.

>>1060064
Businesses don't care. They think they're entitled to educated workers. How they get or pay for that education is somebody else's problem.

>>1060132
>ironic

>implying that this wasn't always the endgame of capitalism

>>1060147

You lose your passport if you default on student loans fyi. You might be able to leave, but you cant ever come back

Crisis? The debts will just become familial problems.

>>1060064

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.

>>1060168
The crisis is the general population not spending money on products and services, as they lack it entirely.

>>1060174
Actually they are. Maybe you should try reading the constitution some time.

>https://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States

>>1060128

> not buying small amounts of gold
> silver
> eth
> btc
> top kek

>>1060159
I saw your post and looked it up just now. What you said is a lie. Do not make shit up.

>>1060064
>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.

File: image.jpg (145KB, 1600x1000px) Image search: [Google]

145KB, 1600x1000px

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:
>>1060753
>>1060782
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.

>>1060064
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

>>1060119
>We deserve more credit
I think that's the one thing millennials could do with less of. I say that as a millennial (a debt free one I might add).

>>1060798
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.

>>1060064
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.

>>1061296
*They've schemed.

Also they hollowed out any hope that the younger generations have of living in a moderately prosperous world by the time they hit 60.

>>1060159
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.

>>1060064
It's a massive drag on the economy and will remain so for decades if not longer. It also doesn't do any good for tens of millions of your citizens to have negative net worth.

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

>>1060801
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.

>>1061312
>drag
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.

>>1061314
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.

>>1060143
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.

>>1060782
>not bankruptable
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?

>>1060122
>get nailed for fraud when you go into bankruptcy
>lose property, go to jail for a few years
>still have to pay student loans

>>1060174
>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.

>>1061272
And companies uses uni degrees as a way to make it simpler for them to pick applicants. Not because they really need the skills.

File: tmp_26847-1415127673847-1516605261.gif (421KB, 700x525px) Image search: [Google]

421KB, 700x525px

>>1061329
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

>>1060168
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.

>>1060174
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.

>>1060177
THIS. We cannot participate in the economy when all we can do is pay interest + a tiiiny bit of principal.

>>1060753
Again, you're simplifying the issue. There are legitimate careers that pay shit now and there is no hope without some sort of forgiveness.

>>1060782
>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.

>>1060795
I feel like this person gets the impending catastrophe. The student loan debt is keeping people from starting their lives. It's unjust.

>>1060798
>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.

>>1061272
No one knows to do this. It is infuriating.

>>1061297
I agree with this. We are headed for political upheaval and revolt if this debt isn't forgiven.

>>1061332
Propose literal indentured servitude to student loan creditors?

>>1061510
The crazy in me wants to believe this.

>>1060064
Dude our naional debt is way fucking bigger , they could declare all debt void and pay it all off and not sneeze

>>1061329
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.

>American problems

File: IMG_20160126_120654.jpg (83KB, 692x875px) Image search: [Google]

83KB, 692x875px

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

>>1060089

> 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.

>>1061719
What happens then? Do we become indentured servants or some shit? Or does the debt just switch hands?

>>1061553
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?

>>1061756
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.