Student loan bubble just popped.....

http://www.zerohedge.com/news/2012-11-27/scariest-chart-quarter-student-debt-bubble-officially-pops-90-day-delinquency-rate-g

We'll let readers calculate on their own what a surge in 90+ day delinquency from 9% to 11% (or as footnote 2 explains: 22%) in one quarter on $1 trillion in student debt means. For those confused, read all about it in this September article: "The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default" which predicted just this.

Shocking

PkrBum wrote:Shocking

It's going to get worse with unemployment rampant and the mindless push for "higher education". A bigger push toward skilled labor education would make more sense.

There are major private universities that have unsustainable models built on the expectations of continued tuition escalation. I don't know how many times we have to see this pattern before we quit falling for it. The result will be govt solutions and increased control... and few will realize that the govt involvement enabled/created the problem to begin with... see healthcare, housing... etc. Gawd we're dumb.

nochain wrote:

PkrBum wrote:Shocking

It's going to get worse with unemployment rampant and the mindless push for "higher education". A bigger push toward skilled labor education would make more sense.

Paying for college now to graduate and be un or underemployed?...Aside from student loans being a financial mess...There is talk of 'dissolving' the city of Detroit because of being broke and mismanaged for years...Oakland, CA...Crime is UP 43% with 33 burglaries occurring daily and of course by Feb the city will be down 600 officers because of financial mess and of course mismanagement...surprised that Mayor Brown is now Governor Brown?....Long been an advocate of revamping the educational system with designs more towards skilled labor...technical occupations...and focusing more on needed vocations...

PkrBum wrote:There are major private universities that have unsustainable models built on the expectations of continued tuition escalation. I don't know how many times we have to see this pattern before we quit falling for it. The result will be govt solutions and increased control... and few will realize that the govt involvement enabled/created the problem to begin with... see healthcare. Gawd we're dumb.

Yup that pretty much sums it up....

TEOTWAWKI wrote:

PkrBum wrote:There are major private universities that have unsustainable models built on the expectations of continued tuition escalation. I don't know how many times we have to see this pattern before we quit falling for it. The result will be govt solutions and increased control... and few will realize that the govt involvement enabled/created the problem to begin with... see healthcare. Gawd we're dumb.

Yup that pretty much sums it up....

Some are 'dumb' twice!....

It's only going to get worse over the next few years as loan amounts have escalated over the last few years and recent graduates cannot find good jobs.

Some are dumb three times... a case in point.

We enrolled our boys in the Florida prepaid college plan when they were babies. I smiled every time tuition went up, knowing that we had "locked in" and had college tuition paid for.

Then we moved to Alabama and lost residency status for the boys... not too smart. Somebody at the Florida prepaid college plan probably laughed. They only paid for half of Alabama's tuition costs.

Oh well, it was still a good move. Christine makes 5 times what she did in Pensacola.

Yomama wrote:Some are dumb three times... a case in point.

We enrolled our boys in the Florida prepaid college plan when they were babies. I smiled every time tuition went up, knowing that we had "locked in" and had college tuition paid for.

Then we moved to Alabama and lost residency status for the boys... not too smart. Somebody at the Florida prepaid college plan probably laughed. They only paid for half of Alabama's tuition costs.

Oh well, it was still a good move. Christine makes 5 times what she did in Pensacola.

You got the money that you paid in back though? Without interest? Is that correct? We are Alabama residents now, of course, but when our daughter started college in Florida, hubby and I were still in Japan and at the time did not know where we would end up at in the States. We didn't have any prepaid college plan but we did look into it when the kids were little...and decided against it since we knew that we had a history of moving every few years. But my daughter attends a private school so it wouldn't have helped so much. And son went another route--into the Army--so a pre paid plan would have been wasted on him. He's out of the Army now, has a very good job, and is making as much or probably more money than if he had gone to college. So that worked out. I tell you what, though...I just made the last (I hope) tuition payment for dear daughter and it was a happy, happy day. It's been an expensive four years. If she wants grad school or something, she can figure a way to fund that on her own.

Nekochan wrote:You got the money that you paid in back though? Without interest? Is that correct?

That's about it, Neko.

Our oldest son just didn't like academia anyway. He went to a Junior College in Birmingham for a few terms, but didn't like it. He became an electrician. We cashed out what was left in his Florida plan and gave the money to him to buy the best electrician's tools he could buy. It seems like it was $5000 or so. He is now making very good money as an electrician and he is a very happy kid.

Our other son got his engineering (civil) degree at UAB and works at a drug store while looking for a job. He and his new wife are "po', but they happy".

Yomama wrote:

Nekochan wrote:You got the money that you paid in back though? Without interest? Is that correct?

That's about it, Neko.

Our oldest son just didn't like academia anyway. He went to a Junior College in Birmingham for a few terms, but didn't like it. He became an electrician. We cashed out what was left in his Florida plan and gave the money to him to buy the best electrician's tools he could buy. It seems like it was $5000 or so. He is now making very good money as an electrician and he is a very happy kid.

Our other son got his engineering (civil) degree at UAB and works at a drug store while looking for a job. He and his new wife are "po', but they happy".

Sounds like you've handled the situation and your children were raised with knowing the importance of an education and work...And to think not one place in this entire post did to blame the government and or expect them to give you anything...In this day taking responsibility is lost in most cases but thankfully not in all cases...

Yomama wrote:

Nekochan wrote:You got the money that you paid in back though? Without interest? Is that correct?

That's about it, Neko.

Our oldest son just didn't like academia anyway. He went to a Junior College in Birmingham for a few terms, but didn't like it. He became an electrician. We cashed out what was left in his Florida plan and gave the money to him to buy the best electrician's tools he could buy. It seems like it was $5000 or so. He is now making very good money as an electrician and he is a very happy kid.

Our other son got his engineering (civil) degree at UAB and works at a drug store while looking for a job. He and his new wife are "po', but they happy".

Civil engineering...they just aren't building many bridges and large projects now. It's a damn shame that an engineer from a good engineering school (and the University of Alabama does have a good engineering school!) cannot find a job now. When the economy turns around, your son will do great. Engineers are going to be in demand. I hope it's sooner than later for him.

My son was very lucky and got very good training in the Army. The boy had no interest in college or advanced schooling but he scored very high on the ASVAB and the Army placed him in military intelligence and gave him some of the finest training that the Army has. It worried me a little when he said he was getting out of the Army during a bad economy. But he had no problem finding a job, first as a contractor and then as a permanent full time employee. I don't think he would be doing as well now if he had gone to college. He is making more money than my daughter will probably ever make with her 4 year degree. But they are both happy (so far) in their chosen paths and they are both hard working, good kids. So I feel blessed. But I do worry about what the future will bring for them.