22 States Where Delinquent Student Loans and Driving Do Not Mix

http://finance.yahoo.com/news/22-states-where-could-lose-100030912.html

Kentucky is one of them.

Student Loans are the gift that keeps on giving. The government promotes an idea that college is the only option, and most people can't afford it. Then kids can't get jobs when they graduate and when they can't they make it even harder for them to get a job.

Government at work.

Killing middle class and driving educated people into poverty with the education machine.

Debtors prison without bars.

Banks are supposed to assume some risk when loaning money. Not now. TBTF (with the help of government).

Biggest issue isnt the loans, its why education cost so much. That and health care cost will kill this country.

6 trillion spent fighting in Middle East in the past decade

3 trillion to foreign aid in the past decade.

10 trillion for Wall Street Bailout once it's all over.

Cancel all student loans 1.2 trillion. Funny how we will throw money at some things and not others.

6 trillion spent fighting in Middle East in the past decade

3 trillion to foreign aid in the past decade.

10 trillion for Wall Street Bailout once it's all over.

 

Cancel all student loans 1.2 trillion. Funny how we will throw money at some things and not others.

But money spent on those three things do not generate INTEREST.

At 5% a year on $1.2T the interest is around 60 billion dollars - $60,000,000,000.00 - each year, every year - and growing. Money for nothing. And a lot of it.

No wonder the central bank (The Fed) and their agent (the Federal Government) like student loans (that you can not declare bankruptcy on).

Biggest issue isnt the loans, its why education cost so much. That and health care cost will kill this country.

WSJ: Most indebted class ever.

Congratulations to Class of 2014, Most Indebted Ever - The Numbers - WSJ

Interesting chart from above:

The red line would corrolate very well to the rise in cost of college in general. There are various studies and analysis that tie together 'easy loan money' and cost increases of college education. Its hard to tell the chicken and the egg on those two. But one thing is for sure. There is not a correlation to starting earnings. In fact - its worse - as the above shows.

This is one of the areas I would like to see a candidate attack. This is a real social issue. IMO moreso than the min wage.

I wonder how the value of an education will depreciate in 20 years at this pace. Do I encourage my grandkids to even go to college?

Some more charts and details on student loan:

http://www.zerohedge.com/news/2015-04-19/student-debt-accounts-nearly-half-us-government-assets

Student debt now comprises 45 percent of federally owned financial assets. Of course, that doesn’t include assets owned by the Federal Reserve, and it doesn’t include real assets like land. Still, it’s a startling figure.

 

 

This trend worries me. Why? Because when the government owns student loans, it has every incentive not to fix the country’s student-debt problem.

Consider the sheer size of the revenue that the government earns from student-loan interest payments. In 2013, it was $51 billion -- almost 2 percent of total federal revenue for that year. That’s more than two-thirds of the lifetime cost of the entire F-22 fighter jet program!

 

With that kind of money on the table, it’s going to be hard to get the government to take strong action for debt relief.

As I noted in a previous thread on federal student loans, students are paying much more now than they did under the previous mixed private/federal marketplace.

There is no longer any competition. It's now a government monopoly.

Labor forece participation rate - for college graduates, 25 and over....

https://research.stlouisfed.org/fred2/series/LNS11327662

A (downward) trend that goes back a long time.

Graduation day - 2015

"Game of Loans"

Graduation day - 2015

 

"Game of Loans"

 

 

 

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That is outstanding...:clap: :clap:

I don't understand the theory behind taking away driving privileges. Obviously it further hampers the ability to find work. Why not garnish a percentage of wages?

Maybe I am playing devils advocate here, but my husband and I recently put 3 kids through college. Some of their friends were going through college via student loans. These students were going AWAY to college. Most of them worked, but I don't remember many who missed parties or many other extra curricular events associated with the fun part of college life.

When I was young, my parents couldn't afford much in the way of college. We stayed home, worked, and attended NKU. There was no money for sororities, fraternities, spring break away, or weekends away at another college. We didn't share a house or live in a dorm. We simply could not afford to go away so we didn't.

Don't get me wrong. I know that there are still students attending college just like I did. They do the best they can with what they have. I would also have to say that there are many students who take these loans out who could easily avoid some of the financial pitfalls, but do not.