The Next Financial Crisis?

[The Judge]

For profit - college. $130,000 for someone who is unemployed and I supposed only had to sign on the dotted line.

These young people are being sold a pipe dream and the Feds are underwriting it.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/01/MN4G1J8PRR.DTL

[RaceBookJoe]

For profit - college. $130,000 for someone who is unemployed and I supposed only had to sign on the dotted line.

These young people are being sold a pipe dream and the Feds are underwriting it.

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/05/01/MN4G1J8PRR.DTL

If I can dig up the article, i was reading that student loans were going to be a problem...especially with the unemployment situation. I guess you cant declare bankruptcy on student loans?? Hope to find the article to jog my memory on this. rbj

[Striker]

If I can dig up the article, i was reading that student loans were going to be a problem...especially with the unemployment situation. I guess you cant declare bankruptcy on student loans?? Hope to find the article to jog my memory on this. rbj
My brother declared bankruptcy and sure enough you cannot put student loans on that. It does cut out all the interest though so the payments become more reasonable. Our parents had no money or didn't save any money for us to go to college, and I will be paying back my student loans now for 10 years and I still have 6 more years to go to pay them off. If I knew what I was signing when I was 18 and that I would owe about 45k on a 20k private loan, I probably wouldn't have signed it.

[RaceBookJoe]

My brother declared bankruptcy and sure enough you cannot put student loans on that. It does cut out all the interest though so the payments become more reasonable. Our parents had no money or didn't save any money for us to go to college, and I will be paying back my student loans now for 10 years and I still have 6 more years to go to pay them off. If I knew what I was signing when I was 18 and that I would owe about 45k on a 20k private loan, I probably wouldn't have signed it.

Interesting, the article i have said that not only cant you declare bankruptcy on a student loan...the interest rates keep compounding, good that your brother got that nixed. From the article :

US Student load debt to hit $1 Trillion in 2011
Currently, student loan debt has outpaced credit card debt
Between 25-43% of all student loans default.

Take that along with the job situation, most young people already are in a hole. According to a different study for the Class of 2009 :

Since graduating, 60% have full time jobs, 35% have moved back home to live with family, 10% have more than $60,000 debt. Here is the sad part....of those who have jobs, more than 2/3 were making less than $35k/yr and 45% were earning less than $15k/yr. Based on the standard 2,000 hr work year...thats right around $7.50/hr. Would you like fries with that...sad. rbj