Flawed Math on Student Loans

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  1. Theba commented on May 11

    “The impact to the lives of the graduates in question, as discharge and forgiveness in programs will be reported to the bureaus.”

    I doubt it. Defaulting on your loan debt will be normalized and will likely have little impact lives other than perhaps a little higher consumer loan/mortgage rate. Amazing how the banking industry profits no matter what the outcome. What I want to know is when this gravy train gets derailed for the colleges and universities. I fail to see how setting tuition at the level students can qualify for the maximum student is any different from inflating the value of the house for the same purpose.

    • willid3 commented on May 11

      more than likely they will get reported as bad debt. will it lead to higher loan rates? yes. it can and would also lead top denials too. course it can also lead to higher insurance rates too. and could make it harder find jobs. or other business that use the credit bureaus in their decision making. and there are lots of them

  2. jtuck004 commented on May 12

    Say What?

    “Some years back, the idea of providing a way for most Americans to own homes sounded very appealing. But the result was a situation in which many lower incomes households became excessively leveraged and terribly illiquid. Many were badly harmed when housing prices started to drop, and suffered further pain when the job market tanked. In its execution, these home ownership programs seemed to end up hurting some of the very folks that they had been intended to help.”

    Reading this it’s as if someone forgot the thieving bank$ter/donors deliberately targeted the U.S. with a conspiracy to extract profits through fees and the results be damned, leading us into the current financial crisis we are living in.

    http://ritholtz.com/2011/11/examining-the-big-lie-how-the-facts-of-the-economic-crisis-stack-up/

    Sounds a bit like the inadequate Santelli from msnbc.

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