I admit I thought the student loan scam was going to blow up over two years ago. I really thought the Golfer in Chief was going to try and somehow write all that debt off as a campaign promise back in 2012 to be honest.
Like most things I have noticed about this long slow collapse if you wait around long enough the predictions do usually come true.
According to this article over at Zero Hedge
We all knew this was going to have to happen at some point. It's been pretty obvious to me regionally that those cities and towns with a high share of the government education money have been doing much better than those cities who are not so well connected. These student loans in many ways are nothing more than just another form of welfare and this is just the first step in getting the average taxpayer to foot the bill before it is all over.
Like bloated government desk jobs and under funded pensions these financial cliffs are not going away, although I will admit I continue to be amazed at just how far they are able to kick this can down the road. This is another sign that yes eventually they do run out of road.
This move supposedly will allow those who took out student loans to cap their payments at 10% of their monthly incomes. Yet at the amounts some of these students can expect to make v. what they have had to borrow this could in an of itself become problematic and barely keeping up with interest.
The plus side for the government is that these loans do not become toxic and therefore keeps the bubble from showing and causing more of a debt problem although that debt will now continue to grow at a higher rate. Another words more can kicking.
Once again it isn't the fact that a problem spotted years ago is finally being acknowledged so much as it shows these things do eventually happen the way level headed people see them happening. It's just no one can understand how far the double dealing and slight of hand numbers fraud can keep the balloon floating.
Just another sign of the continuing collapse.
Keep Prepping Everyone!!!!