Being a Young, American Adult Is a Financial Nightmare
- Thread starter blakpacman
- Start date
According to a report by CNS news, government owned student loan debt has increased by 463% on Obamaâs watch and now stands at a staggering $675 billion. Wait, wasnât he supposed to, you know, help poor, struggling college students?
From CNS News:
Since President Barack Obama took office in 2009, the amount of outstanding federal student loan debt owed to the government has skyrocketed, increasing by 463 percent. The balance owed currently stands at $674,580,000,000.00 compared to $119,803,000,000.00, where it stood in January 2009, according to the Financial Management Serviceâs latest monthly treasury statement.
Direct federal student loan spending began to rise rapidly in fiscal year 2010, when the Health Care and Education Reconciliation Act â one of the two laws that make up Obamacare â gave the federal government complete control over federal loans for education, the Direct Student Loan (DL) program. This aspect of HCERA became effective July 1, 2010, when the amount of outstanding loans stood at $178,806,000,000. Since then, the balance has increased by 277 percent....
There are several factors that have contributed to this:
The terrible economy has prevented college grads from getting jobs that would provide the income needed to pay back loans. And no entity has done more to hinder economic growth than the federal government (See Obamacare).
The federal government took control of all student loans in 2010. By doing this they not only absorbed all of the debt directly, they eliminated all competition that may have kept rates and prices low.
Yet another (and perhaps the biggest) reason students now owe so much to the federal government is rising tuition rates. You want to know why tuition rates seem to never plateau? You guessed it! The federal government. For decades the feds guaranteed all private student loans. This means that there was no risk for a bank to give a loan to a student. See, itâs very difficult for struggling college students to qualify for loans. Theyâve never made any money to speak of and they generally have no collateral. So, the all benevolent government (in an attempt to help, of course) intervened to keep the cash flowing to students. Colleges and Universities are well aware of this and realized quickly that they can charge whatever theyâd like because the students will simply get a loan for it. There is, quite literally, no incentive to stop the madness.
Thatâs right. The federal government has compounded every problem in the student loan world. Like virtually every other perceived problem it has tried to âfixâ, it has ended up making it worse.
From CNS News:
Since President Barack Obama took office in 2009, the amount of outstanding federal student loan debt owed to the government has skyrocketed, increasing by 463 percent. The balance owed currently stands at $674,580,000,000.00 compared to $119,803,000,000.00, where it stood in January 2009, according to the Financial Management Serviceâs latest monthly treasury statement.
Direct federal student loan spending began to rise rapidly in fiscal year 2010, when the Health Care and Education Reconciliation Act â one of the two laws that make up Obamacare â gave the federal government complete control over federal loans for education, the Direct Student Loan (DL) program. This aspect of HCERA became effective July 1, 2010, when the amount of outstanding loans stood at $178,806,000,000. Since then, the balance has increased by 277 percent....
There are several factors that have contributed to this:
The terrible economy has prevented college grads from getting jobs that would provide the income needed to pay back loans. And no entity has done more to hinder economic growth than the federal government (See Obamacare).
The federal government took control of all student loans in 2010. By doing this they not only absorbed all of the debt directly, they eliminated all competition that may have kept rates and prices low.
Yet another (and perhaps the biggest) reason students now owe so much to the federal government is rising tuition rates. You want to know why tuition rates seem to never plateau? You guessed it! The federal government. For decades the feds guaranteed all private student loans. This means that there was no risk for a bank to give a loan to a student. See, itâs very difficult for struggling college students to qualify for loans. Theyâve never made any money to speak of and they generally have no collateral. So, the all benevolent government (in an attempt to help, of course) intervened to keep the cash flowing to students. Colleges and Universities are well aware of this and realized quickly that they can charge whatever theyâd like because the students will simply get a loan for it. There is, quite literally, no incentive to stop the madness.
Thatâs right. The federal government has compounded every problem in the student loan world. Like virtually every other perceived problem it has tried to âfixâ, it has ended up making it worse.
No. The generation before the Boomers. They are the only ones who will make out on our Communist social experiment. (After all, it IS a Ponzi scheme... and who are the few who win in Ponzi?)
Boomers are going to get hosed as well.
Luckier to have been born after WWII. Not luckier in terms of social support benefits.
They're called "The Greatest Generation"... I guess that was because of WWII??
In another sense, the Boomers could be The Greatest Generation... they are the largest, were responsible for more growth and paid more taxes than any other.