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What will happen to those who got expensive student loans to get worthless degrees?
- Thread starter latinotrader
- Start date
For now they are Indentured servants.
When a democrat admin "forgives" the loans, they will then be indentured votes.
When a democrat admin "forgives" the loans, they will then be indentured votes.
Quote from 1prometheus:
For now they are Indentured servants.
When a democrat admin "forgives" the loans, they will then be indentured votes.
yeah the dem's will use it as a reason to buy more votes in the future-
i mean how could those college kids have known that spending 200,000$ to get an english history major at a podunk private liberal arts school wasn't going to pave their way to riches? likely we will find how they were deviously tricked into believing that getting a masters degree in social work later on would be their path to prosperity by the evil rich 1%.
Short sallie?
M
morganist
I've seen a couple of people on the forums in the last few years say that they got loads of student debt and cannot get a job in what they are trained and the amount they earn from the jobs they can get, if they can get a job, is not enough to pay it. They either had to refinance or go insolvent.
You will notice when there is a hard time loads people join ET because they become interested in economics because their lives are ruined in the name of economics. They stop posting after a while and it hasn't happened in a a year or two because of the stimulus but as soon as that finishes there will be a lot of new posters here.
You will notice when there is a hard time loads people join ET because they become interested in economics because their lives are ruined in the name of economics. They stop posting after a while and it hasn't happened in a a year or two because of the stimulus but as soon as that finishes there will be a lot of new posters here.
Quote from Dr. Zhivodka:
Short sallie?
I was intrigued by this idea so I researched it a little bit. They actually had a profit last quarter, but from what I was reading, it was all just sort of from playing musical chairs with their operational costs, and buying/acquiring different types of debt.
What do you think about a generic, beta-neutral play where you go long SPY, short SLM? If SPY goes south, SLM will go south even further. If SPY goes up, it's unlikely that the ability of students to repay loans will match the growth ability of other sectors in the economy. Seeing as I'm an at-home bs nobody analyst, the only error in this scenario that I can think of is if the government steps in somehow.
Thoughts?
it was joke. I don't even know the symbol for sallie.
Who in the hell gives a crap about them or the millions that are unemployed and underemployed? We are a nation that don't give a damn about the misfortune of the other guy as long as we have ours. And we laugh at the few bleeding hearts that do show some compassion. We call them Socialists.
I remember a great number of years ago when I was an employee of an international company that was laying-off hundreds of people each week. Another worker told me to watch the bulletin boards because these laid-off people would be selling everything they owned at a bargain price. Real mercy being shown to his fellow workers!
I remember a great number of years ago when I was an employee of an international company that was laying-off hundreds of people each week. Another worker told me to watch the bulletin boards because these laid-off people would be selling everything they owned at a bargain price. Real mercy being shown to his fellow workers!
sallie i think just has all the government loans that are capped and guaranteed by the gov already- if you are looking for a student loan short then i would suggest looking for smaller regional banks that offer a lot of student loans to smaller liberal arts private schools. those tuition costs will far exceed the federal loan limits each year (especially if you count cost of living) and anyone with half a brain knows that you shouldn't go to a private school unless it is a top-25 in the country one and you still need to choose a real major if you go to one of those to make it worth the cost (ie- engineering, math, science)- maybe, maybe you could get away with a worthless major at one of the big three (harvard / yale / princeton) but then it would only be because of the connections you make. so look for local lenders in areas saturated with liberal arts private schools and that will be where the real short plays are- those loans will never get bailed out, whereas the fed loans could all easily be forgiven as they are already guaranteed.
Quote from dumb_mother:
sallie i think just has all the government loans that are capped and guaranteed by the gov already- if you are looking for a student loan short then i would suggest looking for smaller regional banks that offer a lot of student loans to smaller liberal arts private schools. those tuition costs will far exceed the federal loan limits each year (especially if you count cost of living) and anyone with half a brain knows that you shouldn't go to a private school unless it is a top-25 in the country one and you still need to choose a real major if you go to one of those to make it worth the cost (ie- engineering, math, science)- maybe, maybe you could get away with a worthless major at one of the big three (harvard / yale / princeton) but then it would only be because of the connections you make. so look for local lenders in areas saturated with liberal arts private schools and that will be where the real short plays are- those loans will never get bailed out, whereas the fed loans could all easily be forgiven as they are already guaranteed.
This sounds like solid reasoning, but let me ask you this (purely academic question):
The rate of return on student loans, even if they are guaranteed, is terrible. If we go into a hyper-inflation scenario where there is heavy inflation, would smart money even want SLM?
In the usual hum-drum of the market during periods of no volatility, it probably tracks the index relatively well. In periods of chaos, either up or down, it should be either a relative victim or a total victim.