But don't you dare question the conventional wisdom of a college education in our society.
"Senior citizens continue to bear burden of student loans; Those over 60 owe $36 billion from school" by Ylan Q. Mui | Washington Post, April 08, 2012
WASHINGTON - The burden of paying for college is wreaking havoc on the finances of an unexpected demographic: senior citizens.
New research from the Federal Reserve Bank of New York shows that Americans 60 and older still owe about $36 billion in student loans, providing a rare window into the dynamics of student debt.
More than 10 percent of those loans are delinquent. As a result, consumer advocates say, it is not uncommon for Social Security checks to be garnisheed or for debt collectors to harass borrowers in their 80s over student loans that are decades old.
What, no bailout for the old folks?
Billions-in-profits-per-quarter banks can't cut 'em a break?
What, no bailout for the old folks?
Billions-in-profits-per-quarter banks can't cut 'em a break?
And all I got was this worthless piece of paper in a fancy book.
Some of these older Americans are still grappling with their first wave of student loans, while others took on new debt when they returned to school later in life in hopes of becoming more competitive in the labor force. Many have cosigned for loans with their children or grandchildren to help them afford ballooning tuition.
Looks like the old folks are still getting a schooling!
The recent recession exacerbated this problem, making it harder for older Americans - or the youths they are supporting in school - to get good-paying jobs. And unlike other debts, student loans cannot be shed in bankruptcy. As a result, some older Americans have found that a college degree led not to a prosperous career but instead to a lifetime under the shadow of debt.
And CUI BONO?
“A student loan can be a debt that’s kind of like a ball and chain that you can drag to the grave,’’ said William Brewer, president of the National Association of Consumer Bankruptcy Attorneys. “You can unhook it when they lay you in the coffin.’’
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A college degree has traditionally been viewed as a virtual guarantee of a better-paying job and a higher standard of living. And on the whole, that remains true. The unemployment rate for Americans with only a high school education is 9.2 percent - more than double the rate for those with college degrees. Median weekly earnings for high school graduates last year were $638, according to government data, compared with $1,053 for college graduates.
But with the recent recession prompting layoffs at white-collar law firms and investment banks as well as auto plants and construction companies, more Americans are finding themselves out of work and deep in debt. At a Senate subcommittee hearing last week, Treasury Secretary Timothy Geithner said the cost of higher learning should reflect the quality of education received.
Many students “haven’t been able to earn a return that justifies the expense,’’ he said.
Is it just me, or are you insulted by that failing flop that helped destroy the world economy?
I mean, hey, kids, it is an education in its own way. In the ruler's eyes it is ALWAYS about the RETURN on the INVESTMENT!!
Over the past decade, the cost of college rose between 2 and 6 percent per year, depending on the type of institution, according to the College Board.
Related: College Compensation Consultant Corporatizes Campuses
Maybe THAT has something to do with it, 'eh?
Meanwhile, the New York Fed estimates that Americans owed $870 billion in student loans during the third quarter of last year, significantly outpacing credit card debt or auto loans. Borrowers age 60 and above accounted for 5 percent of that debt. The share for Americans age 50 and older is 17 percent.
In some cases, student debt has been a burden for even financially responsible older Americans.
“Many parents, who thought they were headed to retirement with a college-educated child, end up continuing to work because of student debt that can’t be paid,’’ Senator Richard Durbin, Democrat of Illinois, said at last week’s hearing.
It's called SLAVERY!
Durbin has introduced legislation that would allow private student loan debt to be discharged in bankruptcy, though borrowers would still have to pay off any federal loans. Sallie Mae, one of the nation’s largest private student lenders, as well as consumer groups support all types of student loans being forgiven during bankruptcy.
What, NO BAILOUT for the.... KIDS?
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And now they are going to BLAME YOU for DESTROYING the "recovery?"
"Recovery threatened by runaway student loan debt" by Tom Raum Associated Press / April 3, 2012
WASHINGTON—The federal student loan program seemed like a great idea back in 1965: Borrow to go to college now, pay it back later when you have a job.
But many borrowers these days are close to flunking out, tripped up by painful real-life lessons in math and economics.
It is an education though.
Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis.
Un-f***ing-real!
This PIECE of S*** CORPORATE PRESS, the BANKER'S F***ING MOUTHPIECE is NOW SAYING the SWINDLED STUDENTS are going to be responsible for the GRAND DEPRESSION and RECOVERY THAT NEVER WAS (unless you were at the top of the economic strata; corporations are making record profits, and so are the 0.001%)!!!
And what they just told you is WHEN the BANKS COME A-CALLIN' they are going to GET THEIR DOUGH!
With a still-wobbly jobs market, these loans are increasingly hard to pay off. Unable to find work, many students have returned to school, further driving up their indebtedness....
It's not just young adults who are saddled.
"Parents and the federal government shoulder a substantial part of the postsecondary education bill," said a new report by the Federal Reserve Bank of New York. And some of the borrowers are baby boomers, near or at retirement age. The Fed research found that Americans 60 and older still owe about $36 billion in student loans.
Overall, nearly 3 in 10 of all student loans have past-due balances of 30 days or more, the report said.
Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions.
But, but, but, the Congress, government, and president all said they were looking out for you, kids!!
You $ee who they $erve, right? You learning something?
"This could very well be the next debt bomb for the U.S. economy," said William Brewer, president of the National Association of Consumer Bankruptcy Attorneys.
"As bankruptcy lawyers, we're the first to see the cracks in the foundation," Brewer said. "We were warning of mortgage problems in 2006 and 2007. The industry was saying we've got it under control. Nobody had it under control. Now we're seeing the same signs of distress. We're seeing huge defaults on student loans and people driven into financial difficulties because of them."
Related:
BANKERS GONE WILD
WALL STREET'S MORTGAGE-BACKED SECURITY FRAUD DESTROYED BOTH THE US AND EU ECONOMIES!
Yeah, but it is YOU KIDS(?) and your DELINQUENT LOAN PAYMENTS that are JEOPARDIZING the RECOVERY?
A report by his group noted that missing just one student loan payment puts a borrower in delinquent status. After nine months, the borrower is in default. Once a default occurs, the full amount of the loan is due immediately.
I assume a bailout will ensue.
For those with federal student loans, the government has vast collection powers, including the ability to garnishee a borrower's wages and to seize tax refunds and Social Security and other federal benefit payments.
Told they were helping you, kiddo!
Yeah, it's all your fault, kids!
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