Posts Tagged ‘student’

“HOUSEHOLD DEBT AND CREDIT REPORT (Q1 2017)
Household Debt Reaches New Peak Driven by Gains in Mortgage, Auto, and Student Debt
The CMD’s latest Quarterly Report on Household Debt and Credit reveals that total household debt achieved a new peak in the first quarter of 2017, rising by $149 billion to $12.73 trillion—$50 billion above the previous peak reached in the third quarter of 2008. Balances climbed in several areas: mortgages, 1.7 percent; auto loans, 0.9 percent; and student loans, 2.6 percent. Credit card balances fell 1.9 percent this quarter.” -Federal Reserve Bank of New York
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“At more than $1.4 trillion in loans outstanding, student loan debt is nearly four times bigger than all the debts of Greece.  And it’s still growing at nearly 20% a year… multiple times faster than the official rate of inflation.  Worse, the government’s own data has showed as much as 30% of this debt – nearly one out of every three loans – isn’t being paid or is already in default….

At more than 1,000 schools – representing about one-quarter of all U.S. colleges and trade schools – more than half of students have already defaulted or failed to pay even one dollar toward these loans within seven years of leaving school.  Across all schools, the data show as many as 40% of borrowers haven’t paid a single dollar toward these loans within seven years.  Looking at just the past three years, this number jumps to more than half – 54% – suggesting this problem is only getting worse, not better.

In other words, according to the government’s own data, at least 40% of this debt – representing more than $500 BILLION that has been packaged up, ‘securitized’, and sold to investors as ‘money good’ – will likely never be paid back at all.” -Porter Stansberry

Debt Level

Posted: May 26, 2016 in Money Matters
Tags: , , , , , , ,

“Student debt, car loan debt, credit card debt… they’re all at their highest levels in history.” -Porter Stansberry

The situation in auto loans is dangerous.  But the situation developing in student loans is much worse.  Here, loan totals have grown enormously – with wild abandon – over the past decade.  The total amount of student loans has doubled since 2009, to more than $1.3 trillion.  And why shouldn’t students borrow money like mad?  Much like subprime car buyers, they have no intention to ever pay it back….  The U.S. Department of Education reports that 51% of students are currently not servicing their debts.  That’s from data compiled last year.  Since then, the number of students getting deferments has soared, thanks to aggressive marketing of Obama’s various college-loan programs.  Not surprisingly, students who take deferments are much more likely to eventually default.” -Porter Stansberry