Student Loan Bubble Update: Some 40 Percent Of Borrowers Aren’t Making Payments

$1.2 TRILLION in student loans.

Student Loan Bubble Update: Some 40 Percent Of Borrowers Aren’t Making Payments

by JOHN HAYWARD7 Apr 201683
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Screwing around with loan markets to create huge bubbles, then blaming everything on what remains of the free market when they burst, has been a major socialist pastime since long before subprime mortgage perpetrator Barack Obama reached the Senate.

He’s been doing all that he can to recreate the mortgage bubble, the auto loan bubble is beginning to look ominous, and the student loan bubble may soon burst with a deafening $200 billion pop.

The Wall Street Journal reported on Wednesday that more than 40 percent of student-loan borrowers aren’t making payments:

"While most have since left school and joined the workforce, 43% of the roughly 22 million Americans with federal student loans weren’t making payments as of Jan. 1, according to a quarterly snapshot of the Education Department’s $1.2 trillion student-loan portfolio.

About 1 in 6 borrowers, or 3.6 million, were in default on $56 billion in student debt, meaning they had gone at least a year without making a payment. Three million more owing roughly $66 billion were at least a month behind.

Meantime, another three million owing almost $110 billion were in “forbearance” or “deferment,” meaning they had received permission to temporarily halt payments due to a financial emergency, such as unemployment. The figures exclude borrowers still in school and those with government-guaranteed private loans.

The situation improved slightly from a year earlier, when the nonpayment rate was 46%, but that progress largely reflected a surge in those entering a program for distressed borrowers to lower their payments. Enrollment in those plans, which slash monthly bills by tying them to a small percentage of a borrower’s income, jumped 48% over the year to 4.6 million borrowers as of Jan. 1."

http://www.breitbart.com/big-government/2016/04/07/student-loan-bubble-update-some-40-percent-of-borrowers-arent-making-payments/

In 1960 in California tuition was free. In most state schools tuition was low. However, the last 40 years of trickle down Republican economics, we grew the military, and cut taxes on the rich and our schools raised fees until it became too expensive except for the 1% who had stole this country.....but the best part.....in the Bankruptcy reform act they made student loans non dischargeable.............guess what.......just make student loans dischargeable and the problem is solved. Kids file, and the banksters and Wall Street which bought off congress to pass the bankruptcy reform act take the hit.....kids who have just reached the age of majority are signing predatory school loans to for profit diploma mills.....education should be a role which government does well....not one they abandon for the 1% and the illusion that trickle down actually worked. Amend the bankruptcy code and solve the student loan problem.....kids will pay higher interest rates, will have to be qualified based on whether a basket weaving degree or a engineer degree will allow repayment. Kids are living on student loans for a four year vacation which has nothing to do with education, and like a drug dealer hooking kids on dope, once they are hooked they cannot kick that monkey on their back.

It's quite the web to weave blame on pubs for the education institution... there's nothing really private.

Control is effective ownership.

It's not the fault of any party and to say it is, is a giant lie. It's the fault of both parties for making it too easy to get the loans to start and then keep giving them out. It's the fault of the students for refusing to work at all during the time it takes to get a degree. I worked petty much FT except maybe my first year of college. My last two and a half years at the university level, I had earned scholarships to pay for my education. Students today are borrowing money for ever pizza they eat and beer they drink and that is asinine. Work some for God's sake! It won't hurt you and it will actually look good on your resume to have some job experience along with going to school. It will show you are a hard working person who can handle more than one thing
At a time. I have an ex who bailed on law school. It was somewhere in the late second to third year time frame. She has about 160k in student loan debt which even counts some time at UWF. She's now back in school at UWF working on Pol Sci MA degree just so that she doesn't have to start paying badk old debt. Can anyone explain how without a law degree she will ever be able to pay this debt off? Seriously. That's one example of how naive people are in regards to student loans and how much the scammers are scamming
The system and crying how it's all unfair. Want a free education? Go in the military and earn your Post 9-11 GI Bill.