1. Welcome! Please take a few seconds to create your free account to post threads, make some friends, remove a few ads while surfing and much more. ClutchFans has been bringing fans together to talk Houston Sports since 1996. Join us!

Student loan debt passed credit card debt in 2010, will top $1 TRILLION in 2011

Discussion in 'BBS Hangout' started by Coach AI, Apr 13, 2011.

  1. Coach AI

    Coach AI Contributing Member

    Joined:
    Feb 15, 1999
    Messages:
    7,942
    Likes Received:
    727
    So how's your student loan situation, Clutchfans?

    http://www.nytimes.com/2011/04/12/education/12college.html

     
  2. Sooner423

    Sooner423 Contributing Member

    Joined:
    May 17, 2002
    Messages:
    5,122
    Likes Received:
    1,054
    Steve Eisman, one of the predictors of the banking collapse who made a ****load on credit default swaps, says that student loans for for-profit colleges may be the next sub-prime mortgages.
     
  3. dmc89

    dmc89 Member

    Joined:
    Apr 8, 2009
    Messages:
    3,816
    Likes Received:
    255
    I had just under a quarter million in debt for student loans. I have paid off half of it, and should have zero debt within the next year.

    Steve Eisman is spot on.
     
  4. rhadamanthus

    rhadamanthus Contributing Member

    Joined:
    Nov 20, 2002
    Messages:
    14,304
    Likes Received:
    596
    Huge pic I have posted before that explains the scam in detail:

    [​IMG]
     
    3 people like this.
  5. Baqui99

    Baqui99 Contributing Member

    Joined:
    Jul 11, 2000
    Messages:
    11,493
    Likes Received:
    1,230
    Yeah just reading The Big Short now. Eisman was dead on.

    With wages low and unemployment high now, it's easy to see 10% or more delinquencies and/or defaults in which case your lower tranches get wiped out instantly.
     
  6. R0ckets03

    R0ckets03 Contributing Member

    Joined:
    Nov 11, 1999
    Messages:
    16,326
    Likes Received:
    2,041
    Still paying off wifey's student loan. Stands at $80k currently. :(

    No credit card debt though.
     
  7. Sooner423

    Sooner423 Contributing Member

    Joined:
    May 17, 2002
    Messages:
    5,122
    Likes Received:
    1,054
    I just finished it. Great read. I highly recommend it to those who want to get a better understanding of the banking collapse.

    I wonder how Eisman's betting on this. Shorting For-Profit colleges?
     
  8. Joshfast

    Joshfast "We're all gonna die" - Billy Sole
    Supporting Member

    Joined:
    Dec 9, 2001
    Messages:
    6,476
    Likes Received:
    2,068
    Its worse for For-Profit schools

    [​IMG]
     
    #8 Joshfast, Apr 13, 2011
    Last edited: Apr 13, 2011
  9. Pushkin

    Pushkin Member

    Joined:
    Jan 5, 2008
    Messages:
    411
    Likes Received:
    10
    Not to get this moved to D&D, but that really shows the bad unintended consequences when our government does something that sounds good and the lobbyist get involved.

    I have paid off my student loans, but then I am 46. I think it took about 10 years to pay off the slightly more than $100,000 I borrowed for undergraduate and law school. While the education was worth it, if I knew then what I knew now, I would have been a lot more careful with money and borrowed a lot less.
     
  10. Qball

    Qball Contributing Member

    Joined:
    Nov 9, 2001
    Messages:
    4,151
    Likes Received:
    210
    Wow, that is unbelievable. :eek: :eek: :eek:
     
  11. Oski2005

    Oski2005 Contributing Member

    Joined:
    Nov 14, 2001
    Messages:
    18,100
    Likes Received:
    447
    If I ever win the lottery, I'm going to pay Sallie Mae off with quarters.
     
  12. Baqui99

    Baqui99 Contributing Member

    Joined:
    Jul 11, 2000
    Messages:
    11,493
    Likes Received:
    1,230
    Sounds like he's simply shorting "education stocks" without indicating which are his top shorts. I'm guessing it includes SLM. This is a lot more expensive proposition than simply buying CDS.
     
  13. rhadamanthus

    rhadamanthus Contributing Member

    Joined:
    Nov 20, 2002
    Messages:
    14,304
    Likes Received:
    596
    Unintended? Surely you jest.
     
  14. Baqui99

    Baqui99 Contributing Member

    Joined:
    Jul 11, 2000
    Messages:
    11,493
    Likes Received:
    1,230
    Yeah the biggest issues are the english or history majors taking out $90k in loans to go to a some small East Coast liberal arts college. Then they graduate and the only job they find is something menial like editing copy at some small publishing house in NY for $25k/yr. They then proceed to default on their student loans after they go into repayment since they don't have the cash flow to pay down the minimum monthly pmt.
     
  15. pgabriel

    pgabriel Educated Negro

    Joined:
    Dec 6, 2002
    Messages:
    42,760
    Likes Received:
    2,993
    i don't understand the point of that, is it the fees are the fact you can't write off the debt? what's the complaint?

    not "write off" but have it written off through bankruptcy
     
  16. Lil Pun

    Lil Pun Contributing Member

    Joined:
    Oct 6, 1999
    Messages:
    34,132
    Likes Received:
    1,021
    If you can graduate and get into the Direct Loan Consolidation program and get on the IBL and Forgiveness program, that's your best bet if you have tons of student debt.
     
  17. pgabriel

    pgabriel Educated Negro

    Joined:
    Dec 6, 2002
    Messages:
    42,760
    Likes Received:
    2,993
    conversely, i would argue the way to debt slavery is out of control tuition costs, most families can't save enough to send jr to school while trying to save for retirement and just live
     
  18. TheRealist137

    TheRealist137 Member

    Joined:
    Jan 27, 2009
    Messages:
    33,362
    Likes Received:
    19,214
    College education is too expensive, especially at private schools. No education except maybe the top 10 schools in the country should be able to get away with scamming people over 20 thousand for tuition. There are some schools that are over 40K and there is no way that education is worth that much.
     
  19. Lil Pun

    Lil Pun Contributing Member

    Joined:
    Oct 6, 1999
    Messages:
    34,132
    Likes Received:
    1,021

    Excellent point. I actually work in higher ed and can tell you that we're always trying to find ways to make more money. When we hire a new coach, increase the athletic fee by $5. Add new fees like technology fee and recreation fee. Every year they raise tuition by at least 5%. When I started you could take a full load for well under $2000 a semester now it cost that much just to take 2-3 classes.
     
  20. KingCheetah

    KingCheetah Contributing Member

    Joined:
    Jun 3, 2002
    Messages:
    56,221
    Likes Received:
    48,067
    Just watched the Frontline show on the for profit school explosion -- pure scam -- I can't believe how easily they are able to give out massive loans.
     

Share This Page

  • About ClutchFans

    Since 1996, ClutchFans has been loud and proud covering the Houston Rockets, helping set an industry standard for team fan sites. The forums have been a home for Houston sports fans as well as basketball fanatics around the globe.

  • Support ClutchFans!

    If you find that ClutchFans is a valuable resource for you, please consider becoming a Supporting Member. Supporting Members can upload photos and attachments directly to their posts, customize their user title and more. Gold Supporters see zero ads!


    Upgrade Now