Submitted by Tyler Durden on 08/22/2015 11:43 -0400
Perhaps it’s all the talk about across-the-board debt forgiveness or maybe the total amount of outstanding student debt has simply grown so large ($1.3 trillion) that even those with no conception of how much money that actually is realize that it’s simply never going to paid back so there’s no point worrying about, but whatever the case, the general level of concern regarding America’s student debt bubble doesn’t seem to be at all commensurate with the size of the problem.
And it’s not just the sheer size of the debt pile that’s worrisome. There’s also the knock-on effects, such as delayed household formation and the attendant downward pressure on the homeownership rate, and of course hyperinflation in the rental market.
Of course one reason no one is panicking – yet – is that the severity of the problem is masked by artificially suppressed delinquency rates. As we’ve documented in excruciating detail, if one excludes loans in deferment and forbearance from the numerator in the delinquency calculation, but includes those loans in the denominator then the delinquency rate will be deceptively low. In any event, as WSJ reports, even if one looks at something very simple like, say, the number of borrowers who haven’t made a payment in a year, the picture is not pretty and it’s getting worse all the time. Here’s more:
Lowering the interest rate would be reasonable but would not have much impact on the monthly patment.
Students/parents continue to take out loans that they cannot afford to repay. Stop the insanity.
Loan forgiveness is not an option. Lots of people scrimped and saved for school. Some parents took out home equity loans to pay for tuition. How does the government determine who deserves forgiveness. It is not the government job to decide who repays and who doesn’t.
What about all the homeowners who lost their houses, or people who have their cars repossessed. How can parents and students get themselves into this mess? They should read what they sign.
We have become a Nation of irresponsible people. From the top down.
One particular party is pretty big on labeling the lending banks as being greedy and full of criminals. This doesn’t exactly encourage debtors to pay off their loans.
You took out the loan it is time to pay it back, if not then there should be a judgement against you and you future earnings should be docked. As far as i’am concerned the government should not be in the student loan business to begin with. As for Rich above i say we are becoming a nation of deadbeats and it should not be allowed to happen.
no job,s.
Who cosigned?