The saddest way to default on your student loan
The saddest way to default on your student loan: If a parent or grandparent cosigns a private student loan and then dies, banks can demand that you pay up immediately.
The collapsing higher education pyramid
Buried in a story about how it is just as easy as it used to be to get into college is a quiet notification of the impending burst of the Higher Ed bubble:
“The number of American high school seniors is shrinking, having peaked in 2011. At the same time, according to Noodle’s data, the number of seats at competitive colleges has grown faster than the total pool of qualified applicants”
In which some idiot claims that Student Loans are too big to fail.
In which some idiot claims that Student Loans are too big to fail.:
Thanks for explaining that the student loan system is Too Big To Fail. That argument has never failed, right? Also, can’t let the *enormous* assumption here pass that bankruptcy is the only way out of loans, because no one has ever run out on a loan before.
Just because it is harder to run out on a student loan than a house loan doesn’t make it impossible. This is the same type of BS that was said about the housing market: ‘oh well, no one will run out on their housing loans because people don’t do that, it would be irresponsible.’
The College-Loan Scandal: Matt Taibbi on the Ripping Off of Young America | Politics News | Rolling Stone
The federal government has made it easier than ever to borrow money for higher education – saddling a generation with crushing debts and inflating a bubble that could bring down the economy
The bi-partisan congressional solution: delay a year, after which student loans go up to 7.25 to 8.8%.
The president’s solution: Make a press-worthy attack on banks while ignoring skyrocketing base costs.
The results: an exponentially growing economic bubble whose burst will make the real estate bubble look like a polite hiccup.
