Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis

By Stefan Gleason – Re-Blogged From Silver Phoenix

Presidential candidates Bernie Sanders and Elizabeth Warren are promising as much as $1.6 trillion in student debt forgiveness for millions of borrowers. Critics smell a cynical campaign ploy to try to buy the youth vote.

How is it either realistic or fair to declare an entire category of debt to be assumed by taxpayers?

Regardless, pie-in-the-sky proposals to cancel student debt shed light on a very down-to-earth problem for not only college students and recent graduates – but also for the economy and financial markets.

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James Kunstler: The Coming Collapse of Universities

Summary: James Howard Kunstler looks at the coming collapse of the university system in America. It’s good news. I know of nobody who better describes the decay of American society, aided by his powerful writing. See my note afterwards which provides details supporting his vision.

Lesson One: Revolution - dreamstime_50435521

ID 50435521 © Idiltoffolo | Dreamstime.

Coercion Meets Its Match

By James Howard Kunstler at his website. Posted with his generous permission.

Like the fabled spring zephyr came news that the Golden Golem of Greatness, (a.k.a. President Trump) signed an executive order that would withhold federal funding from colleges and universities that do not demonstrate support for free speech. It has been an amazement to behold the appalling, hypocritical suppression of the first amendment on campuses across the nation, with their ignoble speech codes, asinine safe spaces, sinister kangaroo courts, and racist anti-whiteness crusades.

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America’s Student Loan Debt Bubble

By Michael Snyder – Re-Blogged From Freedom Outpost

Higher education has become one of the biggest money-making scams in America.  We tell all of our young people that if they want to have a bright future, they must go to college.  This message is relentlessly pounded into their heads for their first 18 years, and so by the time high school graduation rolls around for many of them, it would be unthinkable to do anything else.  And instead of doing a cost/benefit analysis on various schools, we tell our young people to go to the best college that they can possibly get into and to not worry about what it will cost.  We assure them that a great job will be there after they graduate and that great job will allow them to easily pay off any student loans that they have accumulated.  Of course, most college graduates don’t end up getting great jobs, but many of them do end up being financially crippled for decades by student loan debt.

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Global Debt Crisis II Cometh

By Mark O’Byrne – Re-Blogged From http://www.Silver-Phoenix500.com

Global debt ‘area of weakness’ and could ‘induce financial panic’ – King warns

– Global debt to GDP now 40 per cent higher than it was a decade ago – BIS warn – Global non-financial corporate debt grew by 15% to 96% of GDP in the past six years – US mortgage rates hit highest level since May 2014

– US student loans near $1.4 trillion, 40% expected to default in next 5 years

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Missing Paperwork May Erase $5 Billion in Student Loan Debt

By F McGuire – Re-Blogged From Newsmax

Missing paperwork reportedly may ultimately erase $5 billion dollars of debt for loans that tens of thousands of former students took out over a decade ago.

National Collegiate Student Loan Trusts — a 15-trust company that purchases private student loan debt — reportedly lost the paperwork documenting these loans’ chains of ownership, according to cases brought forward in Pennsylvania and Delaware, the New York Times reported.

The shoddy record-keeping means that if the trust tries to come after students who default on them, they may see the entire debt written off. Judges have dismissed dozens of lawsuits against borrowers who defaulted on student loans from private creditors, the Times reported.

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Counting on Student Loan Forgiveness? Don’t Bet on It

By Bloomberg – Re-Blogged From Newsmax

Nearly half of college students surveyed earlier this year said they expected to be helped by the federal government’s various student loan forgiveness programs. But new government figures suggest that their hoped-for windfall won’t be that generous.

In a first-of-its-kind public analysis, the U.S. Department of the Education projects that borrowers who next year enroll in loan forgiveness programs would, on average, repay every penny they borrowed, and then some. Some debtors in the programs, which cap monthly payments relative to earnings and offer the possibility of debt forgiveness, are projected to pay as much as 76 percent more than they borrowed. The forgiven amount would largely be interest that accrued over what could be as long as 25 years of making payments.  Continue reading

Counting on Student Loan Forgiveness? Don’t Bet on It

By Bloomberg – Re-Blogged From Newsmax

Nearly half of college students surveyed earlier this year said they expected to be helped by the federal government’s various student loan forgiveness programs. But new government figures suggest that their hoped-for windfall won’t be that generous.

In a first-of-its-kind public analysis, the U.S. Department of the Education projects that borrowers who next year enroll in loan forgiveness programs would, on average, repay every penny they borrowed, and then some. Some debtors in the programs, which cap monthly payments relative to earnings and offer the possibility of debt forgiveness, are projected to pay as much as 76 percent more than they borrowed. The forgiven amount would largely be interest that accrued over what could be as long as 25 years of making payments.

Continue reading