The Next Bubble?
 

Funny how that sharp uptick in student loan late payments coincides perfectly with the Occupy Wall Street timeline... (fall '11).

I think this is dead on. There is a major credit and Student Loan bubble out there. No jobs for new grads and the jobs they can get do not pay enough for the loan payments. This is going to be a major problem.

I'm not debating that. But do you not find it more than just coincidental that the uptick in late student loan payments begins exactly when OWS hit the streets. I think it's far more than mere coincidence, I think it's those clowns who all think their debt should be wiped clean simply not paying out of "principle".

I know a friend of a friend - just finished anesthesia school & owes something like $175K in student loans - she thinks she shouldn't have to pay it - she genuinely believes she is owed any education she wants. She makes just shy of $200K now and thinks she shouldn't pay her loans off. Scary.

I see what you did there :D

This is exactly the problem. Too many people taking out a ton of money for an education and thinking that they should not have to sacrifice anything to get it. This person you mention is making 16k a month gross and won't pay back 1k a month. Just plain stupid.

After $175K in loans, she hasn't learned the definition of 'nondischargeable'. No worries; the school of hard knocks should educate her on that knowledge gap.
She can elect to pay cash for everything for a while because she won't find credit at reasonable terms. But eventually some really bad stuff happens to those that have the ability to repay but choose not to - tax refunds, wage garnishment, revocation of professional licenses, lawsuits. The school of hard knocks gets painful if you think that they'll eventually forget - there is no statute of limitations on collecting student loans. What Happens When You Default on Your Student Loans

But where the school of hard knocks delivers a costly education on loan default is that they can assess some pretty steep penalties and fees on top of your loan balance. The draconian hidden penalty on student loans - The Term Sheet: Fortune's deals blogTerm Sheet


Are they going to go after an OWS Starbucks barrista living in his parents' basement who's blowing his weekly tips on a dime bag? Unlikely. But someone earning six figures is low hanging fruit.

America desperately needs an enema to flush out filth like this, and the POSs they vote for, too.

I guess I left all that to your imagination - she is paying her loans, she's just *****ing about it and thinks she shouldn't have to...which is an issue.

Or the huge expansion of for profit "universities."

I'd argue that during the Great Recession more people went back to school when they were out of a job. Replace the credit card with a student loan, factor in the six month window, and that may explain why it started to climb at the end of 2011. It may make a little more sense for them pay off the 24% interest credit card before focusing on the 6% student loan, but hey, that is their call.

The next bail out? If there are enough people to get votes from they can just change the law for student loan payments. Ten cents on the dollar... Whatever... Who does that hurt? These poor kids deserve a free or almost free education!

You're jokin', right?

To be serious, I have put money in a bank, they loaned out to a student for his education. So, I lose 90 cents of each dollar I put in the bank?

I don't think so,

GF

Yes, he is joking, some of us need sarc tags and some don't.

The rest of you guys can rant at boggy men, but Pielut has nailed the problem. I have kids 22 and 25, and the only friends of theirs that have found real work are the engineering majors. Everyone else is working at jobs well below what their majors would imply -- and these are not stupid kids.

Here is what the rest of the country is just starting to figure out. When you outsource the semi-skilled labor the middle level management and related white collar jobs also go away. And then no one can buy Mr. Ford's cars.

The amazing discovery that actions do have consequences. At least for some of us. No bogey men, it is all out there in black and white, writ large for those with poor vision.

Whoda thunk.

But wait, there is more:http://www.zerohedge.com/news/2013-0...l-wrong-places

Not stupid, but perhaps naive. A college education is not the ticket to a $50-75K/year job it was (in relative money) in the '60s and 70s. There are no guarantees in life, nobody is going to give you anything, and if you want something, you have to work for it.

I'm not saying there aren't repercussions for outsourcing. I'm saying that we've sold our kids on the notion that they have to have a college degree to set themselves apart so they can get a good job. Well, when everyone has a college degree, it ceases to be important.

This isn't one thing, it's everything. It's all interwoven and connected - there are consequences for more than just outsourcing.

So what career avice do you give a 16 year old? It is fine to say that there are no guarantees, which is true, but we ought to be able to tell them that there is oppertunity. And right now there is not a lot of the latter. From teaching to law to business you find former high performing students stocking shelves.

And for the record my kids are fine, but their generation as a a whole is in deep trouble that is not of their making.

See if they may be interested in learning a trade. I have a friend I grew up with that did not have the money for college and became an electrical apprentice. He is now a union electrician making a very solid $80-100K a year. He paid some dues but he said it was worth it. The trades need new workers. We are quickly approaching the undergrad degree being worthless. With a trade position you actually learn skills you can use for a lifetime.

7 Industries that need workers
 

Look at #1

Skilled Trades usually pay while you learn, no massive life crushing student loan needed.

7 Industries in Need of Workers Now | CareerPath.com

My father was a plumber, and I have encouraged kids to look at the trades from time to time. This country would be better off if the trades were valued instead of looked down upon.

However they are very sensative to the economy. The good years are great, but there are a lot of years that include 1/2 days and layoffs. And then you have the retirement problem -- Washington wants to raise the retirement age to 70+, which is fine for a congresscritter but not so great for someone in construction.

The funny thing is the jerk in the suit who thinks he is hot stuff does not know the guy fitting pipes on the side of the road makes more money than he does. A middle manager whipping paper and making spreadsheets is looked upon as more respectable, I think that is just stupid. There are layoffs in every sector (ie furlough), I watched half my office get let go a few years ago, the only reason I survived is I was the only who did what I did. Whatever they do they need to specialize, the world does not need another kid with a liberal arts degree. If they go to college they should look at engineering, healthcare or some other specialty to be competitive. I have a 2 year old son and I often wonder what options will be available to him.

I would tell them this: (in fact, I had typed out a longer reply originally that included trade stuff)

Below is a very good book that I think many young folks should read. It speaks to the very subject of how important trades are and also how they looked down upon. It's an inspiring book and may help one to understand and be proud of working with your hands.
It also speaks about our youth's narcisism and over inflated ego's... mainly the ones graduating college.

Shop Class as Soulcraft

by Matthew B. Crawford

Excerpt: “The Case for Working with Your Hands”
—The New York Times Magazine
“Shop Class as Soulcraft is a beautiful little book about human excellence and the way it is undervalued in contemporary America.”
—Francis Fukuyama, New York Times Book Review
“Matt Crawford’s remarkable book on the morality and metaphysics of the repairman looks into the reality of practical activity. It is a superb combination of testimony and reflection, and you can’t put it down.”
—Harvey Mansfield, Professor of Government, Harvard University

I will second this. Excellent book!