The Student Loan Bubble

[IGotWorms 3,315]

Wall Street jobs. Everything was an 'analyst' position, either equities (Stocks), fixed income (bonds), asset managment or some other BS entry level job where they work you like a mule then either toss you overboard or decide to pay you. . You come out of college pretty naive to the world. I figured Wall Street was the top of the totem pole and I thought I wanted that kind of hollywood cache.

 

Looking back its pretty funny the rat race between ivy league elites and the like who have to live proximate to the most expensive place to live in the country are fighting to get muled for 60k. A small percentage of those move up, with the rest languishing until they are replaced by the next incoming crop of mules.

 

It gets alot of glory, but there are easier ways to make a buck.

What'd you end up doing afterward?

[RLLD 3,455]

Allowing the debt to be further funded by the taxpayers will ultimately make college ever more expensive.

[DankNuggs 305]

What'd you end up doing afterward?

 

Developer/builder. Started off doing project management for a company then branched off into my own thing.

[StopTalkingCheerleader 9]

I have $38k in student loans still, have paid off $25k and only have a BA. What's worse is it took my 6 years to get my associates because I paid for it as I went along, so this is just the last 2 years to get my BA. Do I have a good job yes. Other before my degree I was making 60k.... after my degree 70k... not really too much of a difference for an a$$load of debt and a monthly payment of $680. Absolute BS. I think it's complete cr@p that there are loopholes that others can take advantage of to not pay a dime, yet I struggle to pay all of my bills monthly and not buy the brand new BMW I want, boooo.

[mayhem39 3]

I have 17,000 in student loans. I have paid 35,000 and still owe 14,000. I had deferments for 36 months of the 21 years that I have been paying. I contacted the ombudsman of the dept of education and was told that my loan is on the up and up. Talk about getting raked with capitalized interest. This is sallie mae, the govt borrower. they are so nice to deal with and its real fun owing money to them. I think if I die the loan might be forgiven.

 

This is a big problem considering we are supposed to be the land of opportunity. The govt needs to fund education in a big way. Its getting to the point now where a person really needs to consider if going to college is worth the cost. Very sad to be saying that in the good ole usa. Let the dumbing down of america continue.

[MTSkiBum 1,594]

I had 55,000 in student loans, I graduated 4 years ago, I currently have 15,000 in loans but probably will pay them off next month.

[Gepetto 988]

The reason Houses, Automobiles, and College Education or so damn expensive is because of such a high amount of people taking out LOANS. If we lived in a culture were everyone saved and payed with money they actually had, these things wouldn't cost even close to what they do now. As it is a lot of Americans have debt, some with significant debt and it is a huge burden and detriment to our country and especially to individuals with debt and those wanting to purchase a home, car, or go to college..

[jerryskids 5,206]

This is a big problem considering we are supposed to be the land of opportunity. The govt needs to fund education in a big way. Its getting to the point now where a person really needs to consider if going to college is worth the cost. Very sad to be saying that in the good ole usa. Let the dumbing down of america continue.

There is so much wrong with this paragraph. We are the land of opportunity; you are free to pursue whatever you want. That doesn't mean that the government should pay for your degree in French literature. And a person should consider whether or not going to college is worth the cost. It is supposed to be an investment in your future -- if the expected return doesn't justify the investment, you don't do it.

[mayhem39 3]

There is so much wrong with this paragraph. We are the land of opportunity; you are free to pursue whatever you want. That doesn't mean that the government should pay for your degree in French literature. And a person should consider whether or not going to college is worth the cost. It is supposed to be an investment in your future -- if the expected return doesn't justify the investment, you don't do it.

Nothing is wrong in my paragraph. What I'm saying is that this country needs to think about educating its citizens as a major priority....they dont. That's obvious. I should have worded the beginning of my post differently. My TOTAL funds borrowed were 17000. I have paid 35000 on that loan and still owe 14000. Nice money-maker for the fed govt. The cost of college is what is making the investment a risk. Going to college should not bring a lifelong burden of debt.

[Voltaire 4,562]

The reason Houses, Automobiles, and College Education or so damn expensive is because of such a high amount of people taking out LOANS. If we lived in a culture were everyone saved and payed with money they actually had, these things wouldn't cost even close to what they do now. As it is a lot of Americans have debt, some with significant debt and it is a huge burden and detriment to our country and especially to individuals with debt and those wanting to purchase a home, car, or go to college..

Part of the problem that 18 y/os can't do that is that if they worked at all it was part time at McDonalds. As a group, these people are all pretty much broke.

 

I had this exact problem and I compensated for that by going into the Army. It was a total sh*t experience that I wouldn't wish it on anyone. Better off going in debt IMO.

[DankNuggs 305]

Nothing is wrong in my paragraph. What I'm saying is that this country needs to think about educating its citizens as a major priority....they dont. That's obvious. I should have worded the beginning of my post differently. My TOTAL funds borrowed were 17000. I have paid 35000 on that loan and still owe 14000. Nice money-maker for the fed govt. The cost of college is what is making the investment a risk. Going to college should not bring a lifelong burden of debt.

You are educated until grade 12. The problem is that the quality of that education isn't very good because of the powers that control it

 

I wonder if you could have refinanced your student loan. Not sure exactly how that works

[peenie 1,690]

Other before my degree I was making 60k.... after my degree 70k...

 

you made 60K without a degree? what did you do for a living?

[StopTalkingCheerleader 9]

you made 60K without a degree? what did you do for a living?

Peenie, when I was 24 I got into outside sales for the apartment industry selling advertising and marketing. Prior doing inside sales I was Making 45k..... Got referred to Apartment Guide from a friend and started at $65k base plus commissions at 24. Since then I've went into Training for a software company and make 70k+. It is a start-up, although if I accepted one of our larger ompetitors position I would easily make $85. I rather work fom home 2-3 days so I stay with my current company :-) I do a lot of networking on LinkedIn and have had companies seek me out 70% of the time. If you don't network start, it's pretty much a online resume. I work on people's resumes and interviewing tactics on the side as well to help others get a career if you ever need some help :-)

[peenie 1,690]

Got referred to Apartment Guide from a friend and started at $65k base plus commissions at 24.

 

If you don't network start, it's pretty much a online resume. I work on people's resumes and interviewing tactics on the side as well to help others get a career if you ever need some help :-)

 

wow....thanks.

i'm scared to put my cv/resume online. although, everyone i know that has a good job has been chosen that way.

[jerryskids 5,206]

 

wow....thanks.

i'm scared to put my cv/resume online. although, everyone i know that has a good job has been chosen that way.

Do you have a LinkedIn account? If not, sign up today. You can start by just putting your job history in. Then send connection invitations to every person you know. Most will accept. The ones who don't, don't understand how LinkedIn works, and probably wouldn't be much help anyway.

[peenie 1,690]

yes, i haven't been in there in over a year.

i haven't really filled out my profile but i have a couple of connections, not many.

i guess i'll work on that this week.

thanks!!

[penultimatestraw 473]

Do you have a LinkedIn account? If not, sign up today. You can start by just putting your job history in. Then send connection invitations to every person you know. Most will accept. The ones who don't, don't understand how LinkedIn works, and probably wouldn't be much help anyway.

I've refused a few of those. Hate to be unhelpful, but seems like just another social networking site.

[IGotWorms 3,315]

Yeah I've never gotten squat from LinkedIn or personally know anyone who has. Not a job, not a referral, nothing.

 

Maybe it's just my field and/or geographic region

[jerryskids 5,206]

I've refused a few of those. Hate to be unhelpful, but seems like just another social networking site.

I don't think LinkedIn is where hospitals would look for doctors, so it might not be as valuable to you. It is far from Facebook though, although they are trying to do some things to get the average person more involved on a daily basis. I guess we'll see how that goes.

 

Yeah I've never gotten squat from LinkedIn or personally know anyone who has. Not a job, not a referral, nothing.

 

Maybe it's just my field and/or geographic region

IMO the value isn't so much in getting unsolicited contact from recruiters, although I've had a few in the past few weeks. The value is in building your network for when you proactively need it. I've said here before that the power of LinkedIn is not who you know, but who your contacts know (second level contacts). That is why I say to accept invitations from anyone you know, and to ask anyone you know to connect. Example: years ago I was looking to get into a medical device company. Through LinkedIn I found that a contact of mine (from a different industry) knew someone in marketing there. I spoke to my contact and found out that his contact had dated his daughter and lived in his house for a year. So he was fairly confident that he could introduce me and set up a meeting. That would never have happened without LinkedIn.

[StopTalkingCheerleader 9]

Perfect example Jerrykids, all you are doing is creating a visual brand of who you are or want to represent yourselves as on the internet. Take it upon yourselves to google " you name here "

With parenthesis and see what pulls up. If you network smart, only things you would want a future company to see, make everything personal

Ex. Facebook private and I'm- searchable through google. I have over 1600 contakes I'm LinkedIn ranging fe owners, leasing constants , presidents , recruiter companies, a lust goes on and on. You need to bed lip your profile Pennie and Paint a picture that would leave someone wondering why they wouldn't hire you. Also have atleast 5-10 solid work recommdations in there.

 

Feel free to look at mine and copy crap that's relevant from it. LinkedIn/lindsaymchalemayo.

 

Also start following companies that interest you, comment, lead discussion, it will only aid to your credibility. They have a internal jobs for as well

[penultimatestraw 473]

Perfect example Jerrykids, all you are doing is creating a visual brand of who you are or want to represent yourselves as on the internet. Take it upon yourselves to google " you name here "

With parenthesis and see what pulls up. If you network smart, only things you would want a future company to see, make everything personal

Ex. Facebook private and I'm- searchable through google. I have over 1600 contakes I'm LinkedIn ranging fe owners, leasing constants , presidents , recruiter companies, a lust goes on and on. You need to bed lip your profile Pennie and Paint a picture that would leave someone wondering why they wouldn't hire you. Also have atleast 5-10 solid work recommdations in there.

 

Feel free to look at mine and copy crap that's relevant from it. LinkedIn/lindsaymchalemayo.

 

Also start following companies that interest you, comment, lead discussion, it will only aid to your credibility. They have a internal jobs for as well

Like Worms said, I think it depends on your field. I have a CV which describes my training and experience, and plenty of professional references. I guess it can't hurt to network, but many of us aren't trying to paint any kind of picture to prospective employers.

[StopTalkingCheerleader 9]

Like Worms said, I think it depends on your field. I have a CV which describes my training and experience, and plenty of professional references. I guess it can't hurt to network, but many of us aren't trying to paint any kind of picture to prospective employers.

I don't post for myself or others on caeerbuilder or monster because I've never recieved anything legit off of it. Indeed is alright but still am a bigger believer of linkedIn. Yes your field does play a role in how successful it may be as an employment source, although I average 10-15 minutes a day utilizing it for networking and industry specific posting to key words such as IT, Software, multifamily, extra. I also write industry blogs for my company regarding financial trends and industry movement and have increase the SEO of my own name. if I were a hiring employer, and we're searching for possible candidates with the same "experience and degree" I'm just setting myself apart of the others. In addition, most employers of high paying jobs will search for information about you. Now Engineers, oil fields, doctors, dentists, firefighters, police officers. Pretty much any government job won't be posted on here, so yes, career specific but will never hurt your odds. Also, painting the picture of how great you are is marketing 101. If they don't see something unique or special about you in the quick 5-10 second review of your profile or resumes, you'll be tossed to the "nah" pile. I did do this hiring.

[peenie 1,690]

one guy who left our lab got a job through careerbuilders and makes 13K more at his new job than when he was with us.

another young woman left and is also making considerably more at her new job, she used indeed...i think.

they both were found by recruiters.

i'm going to check you out online stc.

 

(nice wedding picture on FB)

[Phurfur 70]

The Next Big Bailout: Student Loans

 

As tuition costs continue to rise and students take on more debt, some policy experts say another taxpayer bailout of a teetering government-subsidized program -- the massive student loan industry -- is all but certain.

 

The numbers are startling: there is $1.11 trillion in student loans outstanding and $121 billion of them are 90-plus days delinquent or in default. Making matters worse, college costs are rising and incomes, particularly for college grads in industries other than technology and finance, are falling.

 

It’s a recipe for the same type of implosion and eventual government assistance directed to homeowners with delinquent mortgages and banks in the aftermath of the 2007 and 2008 housing meltdown and subsequent financial crisis. Access to cheap lending spurred by government incentives and subsidies from mortgage lenders Fannie Mae and Freddie Mac drove housing prices to bubble-like proportions until many borrowers discovered they couldn’t make good on their loan. Now, similarly easy access to college loans has both inflated tuitions and made college grads a new debtor class, economists say.

http://www.foxbusiness.com/economy-policy/2014/06/03/next-big-bailout-student-loans/

[penultimatestraw 473]

The Next Big Bailout: Student Loans

 

As tuition costs continue to rise and students take on more debt, some policy experts say another taxpayer bailout of a teetering government-subsidized program -- the massive student loan industry -- is all but certain.

 

The numbers are startling: there is $1.11 trillion in student loans outstanding and $121 billion of them are 90-plus days delinquent or in default. Making matters worse, college costs are rising and incomes, particularly for college grads in industries other than technology and finance, are falling.

 

It’s a recipe for the same type of implosion and eventual government assistance directed to homeowners with delinquent mortgages and banks in the aftermath of the 2007 and 2008 housing meltdown and subsequent financial crisis. Access to cheap lending spurred by government incentives and subsidies from mortgage lenders Fannie Mae and Freddie Mac drove housing prices to bubble-like proportions until many borrowers discovered they couldn’t make good on their loan. Now, similarly easy access to college loans has both inflated tuitions and made college grads a new debtor class, economists say.

http://www.foxbusiness.com/economy-policy/2014/06/03/next-big-bailout-student-loans/

This irritates me a little, as higher education isn't a fundamental necessity. And student loans fund a lot of non-educational activity. If you want to choose a dead-end major and drag out college in a drunken stupor, fine. I'd prefer not to pay for it though.

[DankNuggs 305]

BOSTON (AP) — Attorney General Martha Coakley has sued the Federal Housing Finance Agency and mortgage giants Fannie Mae and Freddie Mac for refusing to comply with a state law designed to stem the tide of foreclosures in Massachusetts.

The lawsuit was filed Monday in Suffolk Superior Court.

 

Coakley said Fannie Mae and Freddie Mac violated a 2012 Massachusetts law that allows the sale of homes in foreclosure to nonprofit organizations who intend to restructure the loan and sell the property back to the homeowner.

Coakley said the law has worked in Massachusetts.

‘‘It just makes sense to take action that will continue to keep people in their homes,’’ Coakley said. ‘‘It makes commercial sense. It makes financial sense and it’s frankly the law and not to do it is really unfair.’’

Fannie Mae and Freddie Mac are under the control of the federal housing agency. A spokeswoman for the FHFA declined to comment on the lawsuit.

The 2012 state law explicitly forbids banks and lenders from refusing to consider offers from legitimate buyback programs merely because the property will be resold to the former homeowner.

Critics of the Massachusetts law have argued that allowing homes to be sold back to homeowners who were unable to maintain their original mortgage would create a ‘‘moral hazard’’ by essentially allowing the homeowner to benefit from a bad contract.

But Coakley said the argument is outdated given the state is still trying to dig out of the foreclosure crisis.

‘‘Why not do the commercially reasonable thing which is allow a not-for-profit to buy it, fix it up and rent it back to family to own?’’ she said.

Coakley pointed to a one buyback program, Boston Community Capital’s Stabilizing Urban Neighborhoods initiative, that she said is harmed by the refusal of the federal housing agencies to abide by the state law. The lawsuit argues that such programs have helped slow the spread of urban blight.

The organization buys foreclosed, bank-owned homes at their present market value and sells the properties back to the original homeowners if they qualify for affordable financing. Coakley said Fannie Mae and Freddie Mac have continued to block buybacks even though they lose money in the process.

The CEO of Boston Community Capital, Elyse Cherry, has said the organization has helped restructure about 500 mortgages. She said the group first makes sure the homeowner is in stable fiscal shape before buying the home and structuring a fixed 30-year rate mortgage and selling it back.

In the complaint, Coakley alleges that two of FHFA’s policies violate state law.

One of the policies intended to keep Fannie and Freddie in an ‘‘arm's-length transaction’’ prohibits property sales to nonprofits who resell to the original homeowner.

A second ‘‘make whole’’ policy prevents Fannie and Freddie from accepting anything less than the outstanding loan amount from the former homeowner or anyone seeking to resell or rent to the former homeowner.

Coakley is one of five Democratic candidates running for governor this year.

[RLLD 3,455]

Firstly, the money spent at a University CAN return value to you over the longer term, but its not the only route to prosperity. There is a need for increased entry of qualified labor into the trades, and you can make excellent money. College is not for everyone, you still need to like what you do or you will not be successful, regardless of your education. Enjoying your occupation will naturally lend itself to an energetic participation which is key to advancment.

 

Additionally...

 

http://qz.com/215281/dont-believe-brokers-the-government-or-thomas-piketty-your-property-values-wont-grow-faster-than-your-paycheck/

 

The notion that we can all become rich Millionaires Next Door simply by investing in assets once considered risky is backed up by extensive historical data. But successful investment strategies invariably fizzle after they are widely imitated: To expect that stocks and other risky assets will continue to provide their historically outsized returns for all investors requires implausible assumptions. Crucially, it requires happy surprises—developments that are not already “in the market” when we buy—to boost the prices of our assets at a rate faster than the economy as a whole.

 

[Phurfur 70]

WASHINGTON President Barack Obama is prepping new executive steps to help Americans struggling to pay off their student debt, and throwing his support behind Senate Democratic legislation with a similar goal but potentially a much more profound impact.

 

Obama on Monday will announce he's expanding his "Pay As You Earn" program that lets borrowers pay no more than 10 percent of their monthly income in loan payments, the White House said. Currently, the program is only available to those who started borrowing after October 2007 and kept borrowing after October 2011. Obama plans to start allowing those who borrowed earlier to participate, potentially extending the benefit to millions more borrowers.

.

.

.

Obama will use the Rose Garden appearance on Monday to amplify his call for lawmakers to pass more sweeping legislation that would let college graduates with heavy debts refinance their loans.

 

 

Under an income-based repayment plan created by Congress, the maximum monthly payment is already set to drop from 15 percent of income to 10 percent in July 2014. Obama's executive action eliminates that waiting period so borrowers can take advantage of lower payments sooner.

http://www.foxnews.com/politics/2014/06/08/obama-prepares-to-take-executive-action-expanding-student-loan-program/

[Phurfur 70]

WASHINGTON President Barack Obama is prepping new executive steps to help Americans struggling to pay off their student debt, and throwing his support behind Senate Democratic legislation with a similar goal but potentially a much more profound impact.

Obama on Monday will announce he's expanding his "Pay As You Earn" program that lets borrowers pay no more than 10 percent of their monthly income in loan payments, the White House said. Currently, the program is only available to those who started borrowing after October 2007 and kept borrowing after October 2011. Obama plans to start allowing those who borrowed earlier to participate, potentially extending the benefit to millions more borrowers.

.

.

.

Obama will use the Rose Garden appearance on Monday to amplify his call for lawmakers to pass more sweeping legislation that would let college graduates with heavy debts refinance their loans.

Under an income-based repayment plan created by Congress, the maximum monthly payment is already set to drop from 15 percent of income to 10 percent in July 2014. Obama's executive action eliminates that waiting period so borrowers can take advantage of lower payments sooner.http://www.foxnews.com/politics/2014/06/08/obama-prepares-to-take-executive-action-expanding-student-loan-program/

A better option would be to create an environment that encourages economic growth and better paying jobs. This is a pathetic move by an administration that is clueless on how to create good paying jobs.

[IGotWorms 3,315]

A better option would be to create an environment that encourages economic growth and better paying jobs. This is a pathetic move by an administration that is clueless on how to create good paying jobs.

How, dipsh!t? I've asked you before. This is about the time you tuck your decrepit tail between your legs and hobble off on your walker

[BunnysBastatrds 1,920]

Cool, I can quit putting money into my kids 529 plan and buy a lake home.

 

 

 

This country is doomed

This. That condo in Destin is becoming more attainable.

[Voltaire 4,562]

 

BOSTON (AP) — Attorney General Martha Coakley has sued the Federal Housing Finance Agency and mortgage giants Fannie Mae and Freddie Mac for refusing to comply with a state law designed to stem the tide of foreclosures in Massachusetts.

The lawsuit was filed Monday in Suffolk Superior Court.

 

Coakley said Fannie Mae and Freddie Mac violated a 2012 Massachusetts law that allows the sale of homes in foreclosure to nonprofit organizations who intend to restructure the loan and sell the property back to the homeowner.

Coakley said the law has worked in Massachusetts.

‘‘It just makes sense to take action that will continue to keep people in their homes,’’ Coakley said. ‘‘It makes commercial sense. It makes financial sense and it’s frankly the law and not to do it is really unfair.’’

Fannie Mae and Freddie Mac are under the control of the federal housing agency. A spokeswoman for the FHFA declined to comment on the lawsuit.

The 2012 state law explicitly forbids banks and lenders from refusing to consider offers from legitimate buyback programs merely because the property will be resold to the former homeowner.

Critics of the Massachusetts law have argued that allowing homes to be sold back to homeowners who were unable to maintain their original mortgage would create a ‘‘moral hazard’’ by essentially allowing the homeowner to benefit from a bad contract.

But Coakley said the argument is outdated given the state is still trying to dig out of the foreclosure crisis.

‘‘Why not do the commercially reasonable thing which is allow a not-for-profit to buy it, fix it up and rent it back to family to own?’’ she said.

Coakley pointed to a one buyback program, Boston Community Capital’s Stabilizing Urban Neighborhoods initiative, that she said is harmed by the refusal of the federal housing agencies to abide by the state law. The lawsuit argues that such programs have helped slow the spread of urban blight.

The organization buys foreclosed, bank-owned homes at their present market value and sells the properties back to the original homeowners if they qualify for affordable financing. Coakley said Fannie Mae and Freddie Mac have continued to block buybacks even though they lose money in the process.

The CEO of Boston Community Capital, Elyse Cherry, has said the organization has helped restructure about 500 mortgages. She said the group first makes sure the homeowner is in stable fiscal shape before buying the home and structuring a fixed 30-year rate mortgage and selling it back.

In the complaint, Coakley alleges that two of FHFA’s policies violate state law.

One of the policies intended to keep Fannie and Freddie in an ‘‘arm's-length transaction’’ prohibits property sales to nonprofits who resell to the original homeowner.

A second ‘‘make whole’’ policy prevents Fannie and Freddie from accepting anything less than the outstanding loan amount from the former homeowner or anyone seeking to resell or rent to the former homeowner.

Coakley is one of five Democratic candidates running for governor this year.

 

Oh my God.

 

"I want to stay in my home, but I don't feel like paying my mortgage. Martha, what should I do?"

 

"Don't bother with it, here let this non-profit help you out."

 

Only in Massachusetts could this make sense. Martha Coakley is a name we've heard before. Thankfully the worst Dem Senate candidate since at least Alvin Greene or else we'd be stuck with her permanently. I'm even more thankful than ever that uber-blue Massachusetts decided to pass on her and send Scott Brown to Washington -if ever so briefly- simply to keep this woman out of sight in national affairs.

[NewbieJr 540]

How, dipsh!t? I've asked you before. This is about the time you tuck your decrepit tail between your legs and hobble off on your walker

Nailed it. He ran away like a little girl.

[DankNuggs 305]

Oh my God.

 

"I want to stay in my home, but I don't feel like paying my mortgage. Martha, what should I do?"

 

"Don't bother with it, here let this non-profit help you out."

 

Only in Massachusetts could this make sense. Martha Coakley is a name we've heard before. Thankfully the worst Dem Senate candidate since at least Alvin Greene or else we'd be stuck with her permanently. I'm even more thankful than ever that uber-blue Massachusetts decided to pass on her and send Scott Brown to Washington -if ever so briefly- simply to keep this woman out of sight in national affairs.

i just laugh that people like her forced them to extend these iffy loans, then once they failed, the sue them to eat the cost and pit them as the bad guy....

[DankNuggs 305]

Just like the student loan bubble that is occurring because the wave of liquidity available due to these loan programs that allow schools to pump up tuition. Their solution is to throw more money at it have have taxpayers eat the cost of the failed loans.

 

Exact same thing