The Deseret News has put out an article about the student debt bubble. Usually I resist the temptation to curate so much information from an article. There are so many canards in this dog what else can one do?
They say the student debt bubble is made of iron. Get ready, because collapse is about to ensue.
Iron bubble: Student loans help some, crush others
The subprime mortgage bubble burst like a bomb across the country in 2007 and 2008, putting many homeowners under water and the economy into a solid recession. Now, some analysts worry that the next big debt bubble could be student loans.
Some of the signs are already here.
Its good to see a large newspaper call this debt cycle a bubble. its vindication for the heretics and repudiation of the deniers.
Then the article makes the following statement:
Kantrowitz does, however, admit that there are some "superficial similarities" to the subprime mortgage credit crisis of 2008 because loans were divvied out to homebuyers who were not likely to be able to repay. In a similar vein, federal student loans are given without looking at students' credit history because the goal is access, not profit.
There are two major lies in this little paragraph. 1) ...there are superficial similarities to the subprime mortgage credit crisis of 2008. Except the Federal Reserve backstopped both scams. Both scams are designed to undermine America by international and domestic terrorists that hate America, because our Constitution is essentially anti-aristocratic. Those are the "superficial" similarities to which the article must be referring, and one must wonder what the serious problems are.
But this canard is one of most vile lies ever: In a similar vein, federal student loans are given without looking at students' credit history because the goal is access, not profit. If there weren't profits to be made then vultures would be all over this thing like a donkey lost in the desert. School loans have loan origination fees. These fees are often 2.5 to 4% off the top before one cent of interest is accrued. For every one million in school loans the banks originate $25,000-to $40,000 goes to the banks at the moment of loan dispersal. When $10,000 is borrowed the borrower gets a check for $9,750 to $9,600 that gets signed over to the school for tuition.
The idea the banks don't stand to profit is a cruel joke. The author of the article should actually file a correction for telling such foul and misleading statement, which is essentially ending up in the brains of high school graduates.
Here are some more biggies from the article:
At the individual level, a student loan crisis is the result of poor choices about what loan to take out and managing the way the debt is paid. While personal responsibility is always good, this whole student debt complex wouldn't have happened if Congress and the government hadn't cheated the students out of Constitutionally guaranteed uniform bankruptcy code. (Article 1, Section 8)
Some worry that an accumulation of individual defaults may become a broader national problem, like the subprime mortgage crisis. May become? Aren't the taxpayers now responsible for over one trillion?
But the student loan "bubble" may be made of iron — large, imposing, but not going to pop anytime soon. This may be the most ominous statement in the article. When someone, supposedly a researcher, aka the reporter, can barely recognize an economic bubble which he has been in denial of, and says the bubble isn't going to pop anytime soon....well just get ready because the bubble is probably about to collapse. Maybe enrollment for Fall will collapse. After all, why does anyone need a bunch of debt when all the jobs now are learn-while-you-earn. Try a temp service, try different jobs and see what you can learn. For a room, you can always rent a couch at a friend's place. They need the money anyway.
The situation has reached the point where denying the student loan complex is in a bubble is laughable. The only question is how many colleges and universities will be destroyed in the coming herd culling.
This paragraph pretty much sums up the illegality of the student debt complex:
Power to take
But as forgiving as the student loan process can be (try getting forbearance, deferment or alternative payment plans from credit cards or for a mortgage), the federal government will not be denied. It can intercept income tax refunds, it can take up to 15 percent of Social Security benefit payments and the loans are rarely dischargeable in bankruptcy. People who default on a federal education loan can't enlist in the military. They can't get an FHA or VA mortgage. Renewals of professional licenses may be turned down.
All the corruption is due to violations of the Constitution. Taxation, violations of the uniformity of bankruptcy, corruption and insider influence. The entire system relies on the naivete of students who want a future and often don't have the experience to comprehend complex systematic corruption.