ALIPAC: College Bubble Update: Default Rates on Student Loans Soar to 15%

And why is this important to know? Well, as we all remember, interest on these loans or at least part of it, is supposed to be one of the funding sources for Obamacare. Just another nitch in the house of cards this president has created. But, it is worse news that these young people are unemployed at such a high rate and can't make the payments on their student loans, and it is also sad for the parents of these young people who are seeing their money stretched even tighter with support for these young people and higher and higher costs for every single thing including increased property taxes etc. I truly am not sure we can take another whole year plus of Obama without some meaningful change in policy.

Mac Slavo
September 15th, 2011
SHTFplan.com
65 Comments

In 2010, as the buzz of economic recovery swept over the nation, we were warning of the unemployment crisis and how it would affect college graduates http://www.shtfplan.com/headline-news/broke-and-jobless-85-of-colle... who were told that once out of college they’d be quickly absorbed into the job market where they’d make all of their wildest financial dreams come true.

While unemployment for college grads is 15% according to Bloomberg, we know for a fact that the overall rate of unemployment, per economist John Williams of Shadow States, is actually at around 22%.

It’s not just college students, it’s everybody – one in five able bodied Americans are out of work right now.

There is a reason that these numbers, especially for college grads, are peaking at levels we have never seen before: it’s because our economy is shambles with no clear recovery in sight.

For college grads, it gets even worse. Not only can they not find a job, but they are putting financial pressure on their parents, who will now have to continue providing a home, food, and utilities until such time that their boomerang kid can get some meaningful work and contribute financially to the household. On top of that, they are debt laden with an average debt of over $23,000 once they graduate college

Those dreams of white picket fence success are now turning into nightmares, as massive default rates in the $1 Trillion college debt industry loom, according to a new report from the Department of Education: http://www.ed.gov/news/press-releases/default-rates-rise-federal-st...

The U.S. Department of Education today released the official FY 2009 national student loan cohort default rate, which has risen to 8.8 percent, up from 7.0 percent in FY 2008. The cohort default rates increased for all sectors: from 6.0 percent to 7.2 percent for public institutions, from 4.0 percent to 4.6 percent for private institutions, and from 11.6 percent to 15 percent at for-profit schools.

read more here along with graphs: http://www.alipac.us/ftopict-250070.html

You need to be a member of First Coast Tea Party to add comments!

Join First Coast Tea Party

Comment by Patricia M. McBride on September 16, 2011 at 10:24am: Amanda, private colleges do a fine job in many instances, but your stance is certainly the liberal rhetoric spewed by Obama and friends. Many folks go to private colleges, and I have friends who teach in them and they are fine and well educated people who care. This commentary was in general, yes, and it includes all college loans from both public and private colleges.

Comment by amanda choate on September 16, 2011 at 9:23am: "For Profit" colleges have been eating at the public trough long enough. They do an inadequate job of preparing their students, most poor, for the job world. This is a broad generalization I know, but they are basically predators.

Comment by Patricia M. McBride on September 16, 2011 at 6:37am: Yes, it has increased rapidly, but I had understood part of the increase was due to increased costs of loans (and of course inflation raises it's ugly head). I don't know what people who pay their tuition from semester to semester do with the much higher cost of tuition and books.

I should add, as noted in the article, the fail rates on these loans really is higher than 15%, and yes, as usual the folks taking the hit harder are blacks and for profit colleges. It's a shame that anyone should have to be hurt!

Comment by Dennis J. Fleming on September 16, 2011 at 6:30am: There is a myth in our society that a college degree is the only road to success. Students and their parents should consider why the student is attending college. Will a college education increase the development of the student's God given talents or is it only an activity to enjoy for a few years?

The report also indicated a higher rate of default by students at for profit and traditional black colleges.

I have read a prediction that higher education will be the next financial bubble to burst. The cost of education has increased at a rate higher than inflation.

RSS

Welcome to
First Coast Tea Party

Sign Up
or Sign In

National Debt Clock

Click for information

US Debt Clock

State of Florida Debt Clock

The First CoastTea Party is a non-profit organization. We have no deep-pocketed special interest funding our efforts.

You may contact us at:

First Coast Tea Party
1205 Salt Creek Island Dr
Ponte Vedra, FL 32082
904-392-7475

Helpful Links

Blog Posts

RYAN NICHOLS - Hardened Criminal?? Seriously??

If you're not already aware. This is what's going on in DC while dangerous criminals are allowed back out on the streets. It's horrifying that this is happening to our citizens and veterans for protesting the hijacking of our election process. This is still happening! They are STILL being tortured and treated like full on terrorists.

You may not be aware of the typical things they're forced to go through...…

Continue

Posted by Babs Jordan on August 14, 2022 at 8:44am

Badges | Report an Issue | Terms of Service