More Student Loans Past Due

carguym14 · August 16, 2011, 20:35

http://blogs.wsj.com/economics/2011/...-due/?mod=e2tw

In the second quarter, 11.2% of student loans were more than 90 days past due and the rate was steadily rising, according to data from the Federal Reserve Bank of New York. Only credit cards had a higher rate of delinquency — 12.2% — but those numbers have been on a steady decline for the past four quarters.

Enquiring Minds · August 19, 2011, 01:03

YEP. *How* did student loan debt balloon to almost $1TRIllion? Gov't "stimulus", aka "financial aid", nach.

And how is the housing market going to "recover", when the usual pool of first-time buyers is leaving college with the equivalent of a mortgage already around their necks, and no house or "equity" of any kind to show for it, except a dubious degree from a third-rate for-profit "university"?

Yet another "headwind" for housing that is rarely mentioned.

JohnnyV1966 · August 19, 2011, 06:13

Quote:

Originally posted by carguym14
http://blogs.wsj.com/economics/2011/...-due/?mod=e2tw

In the second quarter, 11.2% of student loans were more than 90 days past due and the rate was steadily rising, according to data from the Federal Reserve Bank of New York. Only credit cards had a higher rate of delinquency — 12.2% — but those numbers have been on a steady decline for the past four quarters.

Making matters worse is that Credit Card Debt can be discharged under Bankruptcy whereas Student Loans cannot be discharged. Further if you stop paying your student loan you are persona non grata in the practice of many professions ie Law or being a Government Employee. Most troubling is that the IRS will descend upon you to pay up with penalties and interest.

As a former Professor I can also tell you that having worked at three educational institutions, two were diploma mills complete with whining students who looked like they lived in a dumpster and too frequently were arriving late. Another way for the Pols to "solve" an unemployment problem.

JohnnyV1966 · August 19, 2011, 06:16

Quote:

Originally posted by JohnnyV1966

... two were diploma mills complete with whining students who looked like they lived in a dumpster and too frequently were arriving late. Another way for the Pols to "solve" an unemployment problem.

These students were not paying tuition with their own money, but attending on Government Guaranteed Student Loans.

**bykerhd** · August 19, 2011, 11:26

Not much out there for jobs for a lot of these new graduates to work at either.
Especially jobs that pay wages that will allow them to start paying back their loans as well as eating, keeping a roof over their heads, etc.
Lots are living with mom & dad I bet.
The ones that MIGHT be making their loan payments anyway.

August 16, 2011, 20:35	#1
carguym14 Registered Bronze Contributor FALaholic #: 13162 Join Date: Jan 2004 Location: Iowa Posts: 5,959	More Student Loans Past Due http://blogs.wsj.com/economics/2011/...-due/?mod=e2tw In the second quarter, 11.2% of student loans were more than 90 days past due and the rate was steadily rising, according to data from the Federal Reserve Bank of New York. Only credit cards had a higher rate of delinquency — 12.2% — but those numbers have been on a steady decline for the past four quarters. __________________ Anything not under government control is,by definition,out of control. Don't piss down my back and tell me it's raining. When is it time to pick up your rifle? When your conscience cannot abide to see it unused. 1gewehr 8/3/05

August 19, 2011, 01:03	#2
Enquiring Minds Registered FALaholic #: 209 Join Date: Jul 2000 Location: "The Venice of America"... FLL... Posts: 4,150	YEP. How did student loan debt balloon to almost $1TRIllion? Gov't "stimulus", aka "financial aid", nach. And how is the housing market going to "recover", when the usual pool of first-time buyers is leaving college with the equivalent of a mortgage already around their necks, and no house or "equity" of any kind to show for it, except a dubious degree from a third-rate for-profit "university"? Yet another "headwind" for housing that is rarely mentioned. __________________ "We live in a gangster state, and our days of laughing at other countries are over." --Matt Taibbi, Rolling Stone

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August 19, 2011, 11:26	#5
bykerhd Dinosaur Bronze Contributor FALaholic #: 2798 Join Date: Mar 2001 Location: Burlington Vermont area Posts: 13,262	Not much out there for jobs for a lot of these new graduates to work at either. Especially jobs that pay wages that will allow them to start paying back their loans as well as eating, keeping a roof over their heads, etc. Lots are living with mom & dad I bet. The ones that MIGHT be making their loan payments anyway.