Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
What are the likely scenarios after the student loan bubble?
1) College Tuition Decreases
2)
3)
You're assuming they won't have to pay it back?
The only way tuition decreases is if the government exits the student loan business. If and when private bankers loan based on realistic ability to pay, then tuition might drop. On the other hand, colleges might simply reduce supply. They might focus on high-demand programs like medicine and certain engineering disciplines. This would keep tuition high, regardless.
The problem is far more complicated than most realize.
I don't assume that, and I hope that does not happened. How unfair would that be for those who borrowed tons of student loans 10, 20, or 30 years ago and have been working very hard and been very frugal, and have been paying off most of their loans already.
If one made bad choices, spent the money, one should be responsible for paying for it. Period!
What do it mean when the student loan bubble burst? What are the aftermath when it happens.
What are the likely scenarios after the student loan bubble?
1) College Tuition Decreases
2)
3)
I can't envision an end to the student loan bubble.
Nothing lasts forever, obviously, but we're not really anywhere near a collapse of the system, and there's no political will to return to a system that funds colleges primarily through state taxes.
You would need reform at the federal level, and it would need to be imperative enough to overturn the will of the financial industry as well as the for-profit and non-profit higher education industries. You would also probably face opposition from the states themselves, who lack the Federal Government's lending capacity, and have little interest in funding higher ed.
what does the bubble burst mean for student loan? Feds stop backing up these loans and let the market dictate whom to lend the money to? That would be logical to me.
Talk of the student loan bubble pop is IMO largely driven by the fear mongering element of the investment community.
Look at the debts as a series of bonds.
Some are low grade, some are high grade.
The interest rates on them are many many points higher than the US bond market and as such carry an inherent default risk load.
Talk that there will be mass forgiveness and that you can get out of them etc etc is imo are often predatory on-line scams given wings by rumor and desperate false hope.
I think the whole thing is fairly overblown by people working financial scams\agendas or those they've managed to scare and panic.
P.S. BUY GOLD NOW!!!! It's going to $4,000! lol.....
be careful with your predictions about college tuition.
For most colleges, tuition is the biggest source of revenue that keeps these colleges going. Their budget is already quite tight. If the bubble bursts, there could be declining enrollment, which would put these colleges further in crisis.
Across many states, there are talks about certain campuses closing down, as there is simply not enough enrollment and money to sustain it.
However, that doesn't mean that the tuition will be lower. It probably means fewer programs and smaller programs, a smaller percentage of the population receiving higher education. Colleges have also talked about the idea of differentiating tuition based on majors. So if you want to major in something marketable, there is still plenty of demand, and tuition will remain high. So if you don't have money, then you choose only the affordable majors.
Likewise, faculty salaries might differentiate. Those who teach in marketable programs receive better pay, and those in less marketable programs receive less, and these programs may not exist.
Talk of the student loan bubble pop is IMO largely driven by the fear mongering element of the investment community.
Look at the debts as a series of bonds.
Some are low grade, some are high grade.
The interest rates on them are many many points higher than the US bond market and as such carry an inherent default risk load.
Talk that there will be mass forgiveness and that you can get out of them etc etc is imo are often predatory on-line scams given wings by rumor and desperate false hope.
I think the whole thing is fairly overblown by people working financial scams\agendas or those they've managed to scare and panic.
P.S. BUY GOLD NOW!!!! It's going to $4,000! lol.....
Student loans got nationalized if you recall.
And why did Obama nationalize them ?
What was a small private guaranteed student loan program has turned into a bloated disaster in the making. Yet another "everyone gets free money" proposal by our FedGov.
Sure that "mass forgiveness" is just your tax dollars flushed down the toilet.
Student loans got nationalized if you recall.
And why did Obama nationalize them ?
What was a small private guaranteed student loan program has turned into a bloated disaster in the making. Yet another "everyone gets free money" proposal by our FedGov.
Sure that "mass forgiveness" is just your tax dollars flushed down the toilet.
I thought student loans (Stafford Loan)was always available. What did the Obama administration do? Did they increase the borrowing limit?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
