So my predictions for 2012 have not born fruit particularly. As usual we see the wreck coming but it always seems to take longer to get there than we first expect. That is the main problem with collapse predicting and the prepper community the timeline is always much longer than it appears it should be and many lose interest or must focus on more immediate problems.
I did come across this article today however.
Student Loan delinquencies Hit new High
New data released today shows 11% of student loans were 90 days or more past due in the third quarter, up from 8.9% in the previous quarter and 8.8% a year prior, according to the Federal Reserve Bank of New York. It’s also the highest since at least 2003, when the bank first started tracking student loan delinquencies. “It’s a red flag and a warning sign that more Americans are struggling to repay their student loans — things are bad, really bad, and getting worse,” says Rich Williams, higher-education advocate at the U.S. Public Interest Research Group, a nonprofit based in Washington.
It all keeps adding up my friends.
A slow moving train wreck is just as deadly as a fast one so don't get complacent.
Keep Prepping Everyone!!!
My brother ( an attorney ) taught part time at local community college and always included a section on student loans. He liked to remind them that the loans were non-bankruptable. He'd run some of the numbers for them to get them to see what a bad deal the so called "free money" was doing their years in college. The low interest starts as soon as you take the loan out and compounds over the life of that loan. Not so pretty, once he scratched the surface...
ReplyDelete"A slow moving train wreck is just as deadly as a fast one"
ReplyDeleteVery true.
my son and daughter in law celebrated the paying off of their student loans not too long ago...thank goodness! now they are prepping in big ways...it is always a good feeling to know that at least one of your kids has got some common sense.
ReplyDeleteYes, it always takes much longer. Long enough that people often confuse the real causes of collapse.
ReplyDeleteIf it makes you feel any better, the best predictors of the housing bubble collapse were in 2003. It was August of 2005 that housing peaked. But even than it wasn't over because the banks actually ramped up their lending in 2006. Essentially throwing more money at what was a dwindling tap.
Notice one huge change. Student loans used to be made by banks, but supported by the Government. Now the loans are made by the governement and there is zero criteria for being able to pay them back.
Here's another twist for you...since it seems the government is hurting for money. I started college in 1987 at the age of 18. I only took what classes I could pay cash for, so I didn't actually graduate with my Bachelor's until 2011 :) Over the years, my employer paid for many of my business-related classes. My plan was to not use student loans until I was ready for medical school. I opted not to go to medical school when I found I was pregnant with our second child. So, I NEVER took out students loans. Well, last month I received several ugly phone calls from a student loan collection service in Austin, claiming that I borrowed $5K in 1987, and that after 25 years, I now owe $30K. We were shocked, even more so when they threatened to garnish my husband's wages. I am in the process of researching how this happened, but the Department of Education is not very helpful. In their eyes, I owe it, though they cannot cough up any hard copy documents that show my signature. I KNOW I NEVER borrowed any money, so I have no clue what is up???
ReplyDeleteHow's that for a kick in the butt?
sounds like a case of stolen identity! hope that you get it resolved.
Delete