1. Welcome to SportsJournalists.com, a friendly forum for discussing all things sports and journalism.

    Your voice is missing! You will need to register for a free account to get access to the following site features:
    • Reply to discussions and create your own threads.
    • Access to private conversations with other members.
    • Fewer ads.

    We hope to see you as a part of our community soon!

WSJ -- 40 percent of Federal student loans behind in payments

Discussion in 'Sports and News' started by The Big Ragu, Apr 7, 2016.

  1. The Big Ragu

    The Big Ragu Moderator Staff Member

    More Than 40% of Student Borrowers Aren’t Making Payments

    More than 40 percent of people with Federal student loans are in default.

    What a waste. Free markets calibrate risk. Government-rigged markets create huge messes like this one. More than a trillion dollars of debt, much of which will never be repaid and sits on the country's balance sheet -- even with the Federal Reserve rigging rates artificially low to try to monetize as much debt as possible, 40 percent of these loans are still in default. And all we have to show for it are mostly worthless degrees being held by people who can't find anything except low-paying service sector jobs -- which is why they can't afford to pay back what they borrowed. At the same time, the market for higher education has seen costs skyrocket as a result of the artificial demand the guaranteed loans created.

    I knew the raw dollar amounts -- more than a trillion dollars -- and I knew that eventually it is going to implode -- along with a bunch of other debt bubbles we have created. But I was surprised at how far along the defaults already were.
  2. Mr. Sunshine

    Mr. Sunshine Well-Known Member

    I paid my way through college, so I have immense credibility.
  3. three_bags_full

    three_bags_full Well-Known Member

    I paid for mine in the deserts of Afghanistan. Mucho creditibilitio.
  4. Hokie_pokie

    Hokie_pokie Well-Known Member

    Even Baron Von Doofenschtein can't question your credentials.
    old_tony likes this.
  5. The Big Ragu

    The Big Ragu Moderator Staff Member

    I don't see it as a credibility issue. We don't have millions of people who want to be deadbeats. We have millions of people who availed themselves of a fantasy -- that led to billions of dollars being lent to people a free market would have never lent to without collateral. It was actually a bad use of capital, because the return on investment is proving to have been near worthless for the majority of those people.

    Not sure how old you are. Or where you went to school. But for a lot of people who had a chance to pay their way through college when I went 30 years ago, it wouldn't be happening today.
  6. Mr. Sunshine

    Mr. Sunshine Well-Known Member

    It's a Baron-related joke.
  7. JC

    JC Well-Known Member

    Defaulting on a loan builds character that can't be found by borrowing money from your parents.
  8. Baron Scicluna

    Baron Scicluna Well-Known Member

    When have I ever questioned his credentials?
  9. doctorquant

    doctorquant Well-Known Member

    Wait a minute ... we don't know if there was any cash in his Christmas stocking one year. A couple of Bennies and TBF's credibility is gone!
    LongTimeListener and Hokie_pokie like this.
  10. TheSportsPredictor

    TheSportsPredictor Well-Known Member

  11. The Big Ragu

    The Big Ragu Moderator Staff Member

    In an ideal world, that money wouldn't be available so easily. Lenders would utilize lending criteria that are commensurate with the risk of the loan. If that was the case, we wouldn't be where we are. To the extent anyone could secure a loan, though, I still think the most sane behavior is to defer on borrowing for something if you aren't likely to pay back what you borrowed.
  12. Baron Scicluna

    Baron Scicluna Well-Known Member

    Please. You tried the bootstraps narrative and failed miserably. Why ... You spent a few months living in your parents house while getting your tenure! Such a hard life! Slacker!
Draft saved Draft deleted

Share This Page