Student loans: Another bubble pops?


Blacknbengal

Blacknbengal

Well-Known Member
Families are borrowing more heavily to fund the rising cost of higher education, but an increase in default rates is forcing private lenders to abandon the market.

Has the U.S. created an "education bubble" fueled by easy money and over-borrowing by families desperate to pay rising tuition costs?

Expect a hastily sputtered "no way" from economists, university officials and student-lending specialists. They attach a high monetary value to academic degrees, no matter how fast tuition rises. As proof, they cite the big and growing income gap between college graduates and people with just high-school diplomas.

But the student-loan market has been riddled with signs of trouble lately. Default rates are rising. Big-name lenders are pulling out or scaling back. And investors who used to snap up bonds backed by bundles of student loans have instead snapped their checkbooks shut.

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I am so grateful that my son didn't have any student loan debt. Some of the payments and balances I see college students with blows my mind. They start out in the hole, deep in the hole

Can you imagine the burden on someone to become employed and stay employed.
 



I think education will be done online for the most part. People are unable/unwilling to pay these prices when you can get an online program, work and live at home or wherever you were living prior.

I read an article years ago where this lady was promoting online education before it was even truly mainstream. She indicated that she had 3 kids that had college degrees and masters degrees for less than $40,000 from a reputable college. I was hooked on that concept every since.

I had my son taking college classes in HS. He's still taking online and brick and mortar classes now. He should finish ahead of the pack.

Student loans are just like FHA loans... legal loan sharking by the federal government.
 
chocalate_topaz said:
I think education will be done online for the most part. People are unable/unwilling to pay these prices when you can get an online program, work and live at home or wherever you were living prior.

I read an article years ago where this lady was promoting online education before it was even truly mainstream. She indicated that she had 3 kids that had college degrees and masters degrees for less than $40,000 from a reputable college. I was hooked on that concept every since.

I had my son taking college classes in HS. He's still taking online and brick and mortar classes now. He should finish ahead of the pack.

Student loans are just like FHA loans... legal loan sharking by the federal government.
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uuum, how does he learn how to lay bricks on line? Send him outside with his kin folks and they will show him to lay some bricks....and some tile, wire a house, and how to haul pulp wood. You wasting your money on that one.....:lmao:
 
Tuition costs are simply stupid. Even to go to JSU now (if you have to pay for everything) you are looking at close to 20 grand a year. This economy is crazy. People in Philly don't generally get a BS until they are in or close to their 30's because school up here cost so much....and that is just tuition alone.
 
Im lookin into takin Online Master courses an bein reimbursed with 4000 a year from my comapny at U of Phoenix Online
 
Tigerpride said:
uuum, how does he learn how to lay bricks on line? Send him outside with his kin folks and they will show him to lay some bricks....and some tile, wire a house, and how to haul pulp wood. You wasting your money on that one.....:lmao:
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brick and mortar is euphemism for a building...you know classroom building...he wasn't taking a brick laying class. He is taking online and on campus classes. The online classes were 1/3 of the on campus classes too.
 
chocalate_topaz said:
brick and mortar is euphemism for a building...you know classroom building...he wasn't taking a brick laying class. He is taking online and on campus classes. The online classes were 1/3 of the on campus classes too.
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Oh, well it would still be a good idea for him to learn how to lay some bricks.
 
Student Loans are the worst type of debt. You cant get out from them in bankruptcy, there are some exceptions, but are rare. The private loans, the companies can charge what ever interest rate they want.
 
I feel really bad for people in school right now. I know someone here in Dallas that came out with $120,000 in student loans for a bachelor's degree only. There is no way it can be paid off while making a salary of like 40ish per year.
 
truthteller said:
I feel really bad for people in school right now. I know someone here in Dallas that came out with $120,000 in student loans for a bachelor's degree only. There is no way it can be paid off while making a salary of like 40ish per year.
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That is a dumb investment on their part. One day, the feds are going to tell folks they can't borrow $150k to go major in African American Studies... I have been looking at the proposals for reforming higher ED, it may get real soon.
 
Very much so a dumb investment... Sheww, somebody also need to convince lawmakers that student loan interest should be deductible for everyone... They ripping off the middle class people for the most part.
 
College should be free. With the stipulation that if you have poor grades, drop out or it takes you longer than the average time to graduate, you have to make up the cost of that education.
 



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