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You cannot squeeze anything out of a dry sponge, so what happens when the debt holder can't pay?
The loan goes into default. With a government guaranteed loan, the government pays back the originator of the note and takes possession of it. With a direct loan, that step is skipped. The government can then squeeze you whatever way it wants -- wage garnishment, confiscating tax refunds or credits, etc. They can even sue you and get you tossed in jail for contempt when you don't pay. And they can do that over and over again. Once the loan goes into default, they tack on so many fees (starting with a 25% collection fee) that it would make a credit card company blush; essentially you'll never get out of this, and your choices are working for cash "under the table" and dodging process servers for the rest of your life, or declaring "Chapter .45 ACP" , which amounts to the same thing.
So given that, why would you default? Answer: because if it's the choice between paying your student loan and paying your rent, you pretty much have to pay your rent, right?
They can even sue you and get you tossed in jail for contempt when you don't pay.
They can't "throw you in jail for contempt." The only kind of debts you can be incarcerated for are delinquent child support payments and evading federal income tax. They can't put you in jail for not paying back student loans.
So given that, why would you default? Answer: because if it's the choice between paying your student loan and paying your rent, you pretty much have to pay your rent, right?
Or you hunker down in Ma's basement until your debts are paid. Seems that what a lot of them are doing these days.
A college grad should be able to trip and fall on a job paying more than minimum wage
Well, that depends. Let's say a person wants a degree in IT because he/she wants to make lots of money. He/she has no passion for the field. He/she just wants to make money. He/she goes into the field because the media and many colleges tout IT as high demand. Well 1,000,000 other Janes and Joes go into IT because they too, want to make $70,000 a year right out of college. Of course we all know that there may not be 1,000,000 IT jobs each year for new grads. Therefore, many of these individuals will not find jobs in their chosen field.
A lot of young folks are flooding high paying fields with dreams of making a quick buck and many of them are being left unemployed. This is happening with IT, education, nursing, radiation therapy, some engineering disciplines, nuclear medicine technology, radiology techs, some STEM fields. And of course you have many unemployed liberal arts grads because these degrees don't produce skills related to any particular job.
Then, of course, many of us in the younger generation were told to pursue our dreams. Well, what about the woman who loves fashion? Unless she is at the top of her field, she will never make it as a fashion designer. Then, there are teens who dream of being musicians. Okay, but unless, they can get into Julliard, they probably won't make it in the music industry. Maybe they should do music as a hobby and see if they can make it by posting a YouTube video.
I'm trying to remember who felt sorry for the generation (yes, the hated Boomers) who couldn't find work or lost their jobs during the late 70's and early 80's. In my case nearly two years without a job with a new baby (both of us were employed when the pregnancy happened, both of us lost our jobs in the following 9 months, Mrs. NBP because she was pregnant).
Well, that depends. Let's say a person wants a degree in IT because he/she wants to make lots of money. He/she has no passion for the field. He/she just wants to make money. He/she goes into the field because the media and many colleges tout IT as high demand. Well 1,000,000 other Janes and Joes go into IT because they too, want to make $70,000 a year right out of college. Of course we all know that there may not be 1,000,000 IT jobs each year for new grads. Therefore, many of these individuals will not find jobs in their chosen field.
A lot of young folks are flooding high paying fields with dreams of making a quick buck and many of them are being left unemployed. This is happening with IT, education, nursing, radiation therapy, some engineering disciplines, nuclear medicine technology, radiology techs, some STEM fields. And of course you have many unemployed liberal arts grads because these degrees don't produce skills related to any particular job.
Then, of course, many of us in the younger generation were told to pursue our dreams. Well, what about the woman who loves fashion? Unless she is at the top of her field, she will never make it as a fashion designer. Then, there are teens who dream of being musicians. Okay, but unless, they can get into Julliard, they probably won't make it in the music industry. Maybe they should do music as a hobby and see if they can make it by posting a YouTube video.
So there is nothing an IT grad can do to make more than $7.25 an hour? That's my point.
I'm trying to remember who felt sorry for the generation (yes, the hated Boomers) who couldn't find work or lost their jobs during the late 70's and early 80's. In my case nearly two years without a job with a new baby (both of us were employed when the pregnancy happened, both of us lost our jobs in the following 9 months, Mrs. NBP because she was pregnant).
So who felt sorry?
No one.
I think you are completely missing the point. The point is that there are fewer options now than before. There are fewer options (industries have completely vanished) and there are more requirements (nowadays without a BA you will have a tough time getting a good job). I think it's safe to say for a long time the quality of life would get better as each generation passed. However, I think this is the first time in a long time that the future generations are worse off than the previous. College was not as expensive nor was health insurance.
there are tons of 20 and 30 somethings out there making crazy money and living large. they work at investment banks, hedge funds, law firms, cpa firms, tech startups, venture capital firms, entertainment companies, start their own businesses etc etc etc. sure those that are not as qualified, nor as intelligent or innovative may be struggling but believe me there are MANY young people doing incredibly well today
The options are not their in many cases. So many fields are flooded beyond words. With technology whole fields have completely disappeared. But here is the point people miss often. Many times it is replaced by little or nothing. That is the root cause of alot of this unemployment. Once you add in all the jobs we have sent overseas. We just added another trade deal to books with South Korea. Who knows many jobs we will lose? The reason so many young people are underemployed the entry jobs have disappeared. Technology has eliminated it or sent it overseas. What is left is your low end service work cashier home health aid ect.
there are tons of 20 and 30 somethings out there making crazy money and living large. they work at investment banks, hedge funds, law firms, cpa firms, tech startups, venture capital firms, entertainment companies, start their own businesses etc etc etc. sure those that are not as qualified, nor as intelligent or innovative may be struggling but believe me there are MANY young people doing incredibly well today
Goldman Sachs cuts staff in annual review process - Yahoo! Finance (http://finance.yahoo.com/news/goldman-sachs-cuts-staff-annual-032517661.html?l=1 - broken link)
They'll get theirs
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This is happening with IT, education, nursing, radiation therapy, some engineering disciplines, nuclear medicine technology, radiology techs, some STEM fields. And of course you have many unemployed liberal arts grads because these degrees don't produce skills related to any particular job. 
