Shot across the bow? Or already in full effect? We know student debt is a big issue, perhaps the next big one facing America. What do you think are the best ways to play it? Feel free to chime in below.
Yale Suing Former Students Shows Crisis in Loans to Poor
Needy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale University and the University of Pennsylvania with little choice except to sue their graduates.
The record defaults on federal Perkins loans may jeopardize the prospects of current students since they are part of a revolving fund that colleges give to students who show extraordinary financial hardship.
Yale, Penn and George Washington University have all sued former students over nonpayment, court records show. While no one tracks the number of lawsuits, students defaulted on $964 million in Perkins loans in the year ended June 2011, 20 percent more than five years earlier, government data show. Unlike most student loans — distributed and collected by the federal government — Perkins loans are administered by colleges, which use repayment money to lend to other poor students
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13 Responses to IT’S ON NOW: Student Debt Bubble Leads to Schools Suing Students
An institution of higher learning having to sue their attendees/students for repayment speaks very highly of the education they received while there.
Ok, so what’s the plan to profit on this.
OOooh..you don’t want to get me started on this subject.
Maybe they should ‘STOP’ increasing tuition as they have in the past 30yrs.
I still have my first receipt from registrars many moons ago. A relic of sorts(13 bucks a credit hour..hahahha)
University flat rate up to 21 credit hours cost as much as a few books these days.
It Makes Me SO SICK..
A subject matter for me for sometime with high school Senior, Junior and Sophomore in the house of Sooz. I’m working my azz off, Chess, to secure their future without 150~200k debt when they are in their mid twenties.
I may be a Hoosier mom soon(?) Ditching the Wolverines and their pompous brain washing ways.
A child who has earned stripes..
*Out of state tuition 40k..”OH LORD, it’s a fire”
(buffered by scholarship)
nice move off reverse split.
(a carry over from the pages of pickr..:)
Sullivan pick from long ago(credit)
02/05/2013 REVERSE SPLIT R/S TO 449593201#REOR M0050776490000
449593102 IGO INC COM 1 FOR 12 R/S INTO IGO INC C
still hold position long
last shares purchased
01/18/2013 YOU BOUGHT
449593102 IGO INC COM 1 FOR 12 R/S INTO IGO INC C
Cash Shares: +*.000 Price: $0.2898
(after reverse split brought them to 3.48)
whoever scooped shares this am 3.20ish..Nice!!
I really don’t know what the solution is at this point. I do know some folks that are doing very well professionally and they are not paying back their loan(s). I know someone that put his student loan in deferment or forbearance and the $100K is now $200K. He really has no plans to pay it. The debt was for law school…go figure. I say sue him to get it back.
The whole concept of going into debt to get an education with no collateral befuddles me. This should have never been alowed to begin with. Now that the mess is out of control what can either side do other than default and duke it out in the courts.
I’ll give you a hint – don’t short a small $4 billion firm…
Probably will replay the Fannie/Freddie collapse in Sallie. Government intervention, investors wiped out, hedge fund sage guru looks dumb on television, etc.
Punk gets a degree in Hispanic/Women/African/Kinesiology studies.
Punk goes out to find a job brimming with energy, after all, the school told him that the demand is high for such a degree.
Punk can’t find job, lives at home with Mom and gets a job at Walmart.
Punk sues school for false advertising.
Moral of story: get a degree in engineering.
Part of the issue is that the demand for reasonable/suitable career opportunities for new grads significantly outweighs the supply of them. I would think that many more high school seniors will look to inexpensive vocational and trade school certifications this decade rather than take on 30k of debt so they can go wait tables, clerk, or customer service with a bachelor’s… assuming the Democrats don’t further try to push 110% of American youth into 4 year college programs.
So, however you play the vocational/trade angle, including domestic oil rigging.
It’s a big problem, and I’m fresh out of solutions today. A lot of people with “funny” degrees used to work in HR, purchasing, or similar soft fields. Now, to get a job in HR you are expected to have an HR degree, and for purchasing you better have your degree in Supply Chain or Logistics and know SAP; Medieval Studies just doesn’t cut it any more in business.
Many of my friends paid 100% out of their pockets for their kids education, so the kids didn’t graduate with debt, including us. My sophomore daughter has a nice scholarship, but it doesn’t cover fees ($4000), room/board ($14000), or books ($1500, and that’s for used books). Plus it’s fixed, while costs go up 10% every year. And that’s at a state school with in-state costs. At least both kids are engineers. Too bad we couldn’t afford to send either kid to the top-ranked engineering school I attended, which would cost >$50k a year now. Either big changes (distance learning?) are coming, or the system slowly crumbles.
Teach your kids how to scalp EUR/USD and keep them on a steady supply of Monster Energy Sodas.