Posted on 11/16/2018 9:47:48 AM PST by Oldeconomybuyer
The total debt shouldered by Americans has hit another record high, rising to $13.5 trillion in the last quarter, while an unusual jump in student-loan delinquencies could provide another signal that the U.S. economic expansion is growing old.
Flows of student debt into serious delinquency - of 90 or more days - rose to 9.1 percent in the third quarter from 8.6 percent in the previous quarter, the Federal Reserve Bank of New York reported on Friday. That propelled the biggest jump in the overall U.S. delinquency rate in seven years.
Total household debt, driven by a $9.1 trillion in mortgages, is now $837 billion higher than its previous peak in 2008, just as the last recession took hold and brought on massive deleveraging across the United States. Indebtedness has risen steadily for more than four years and sits more than 21 percent above a trough in 2013.
The $219 billion rise in total debt in the quarter ended September 30 was the biggest jump since 2016.
(Excerpt) Read more at reuters.com ...
I agree.
Also we are older parents and welcomed the quiet time.
The average age of parents of freshman entering college is 48.
I did attack the Universities. But the young people are no better. By the time they get to that level they should be capable of studying the field and running the numbers. But they are not being taught much in High school either.
All I know is that I had to do it. And I paid back my loans early.
Might I add that now I have to pay for theirs too.
No one should be that far in the hole. We’re barely above the poverty line but don’t owe anyone. Old vehicles paid off. Mortgage paid off. Cards are paid every month. Knock on wood, it gets tight around property tax time but doing without and making priorities is better than being in debt.
“The average U.S. household owes $8,600 on credit cards”.
https://abcnews.go.com/Business/credit-card-debt-surpasses-trillion-us-time/story?id=53608548 Just wait until they charge even more on holiday spending.
Same as Ocasio-Cortez, who is quite wealthy, but whines she can’t afford D.C. rent. Boo hoo. Maybe she could could back on her thousand dollar outfits and set priorities.
That engineering degree will get him a lot further than all those underwater basket weaving degrees.
The issue is that education is way too expensive. There should be some serious cost reductions on college campuses. That would make the difference.
The professor’s salaries need to be cut by half or three quarters for starters.
Instead, liberal want everyone else to pay for the bloated overpriced education system.
I listen to Dave Ramsey some.
There was one guy that called. From what I remember, he was kicked out of West Point the day before graduation and was looking at 300k of debt.
I stayed in a University of Wisconsin dorm when I was at an Oshkosh airshow a few years ago.
Talk about going back in time. It screamed 60s to me.
Many colleges today have a specific dollar tuition for 9-18 hours/sem. Same no matter the number of hours. Makes sense to get in as many as you can.
Back in my day, the max limit was 21 hours so tried to get in 19-21 during the year and 7-9 in the summers. Still had plenty of time to work part time, be in extra curriculars, student gov., be in a band, date, go to every game and generally goof off. Best of times.
My own Sister, who never bothered to listen to my advice on this, co-signed loans for my niece to go to college. She ends up going out of state to Ole Miss and racks up something like $155,000 in student loan debt. About $130,000 was on my sister and of course she can't pay it back. With interest it is now about $155,000.
My Sister's excuse on all this was that she wanted her daughter to have the same kind of college experience she did, translation she wanted her to be able to be in a Damn Sorority. What my Sister forgot was when she was in college it was affordable and my father could pay for it.
My niece graduated with a degree in Hospitality Management, and what job does she have today. Well she is a flight attendant for an airline. Great Job and perks, but certainly not worth the cost of the Degree.
I have been trying to help my Sister in this mess, not financially, but in trying to deal with the student loan people. She just has no clue about money at all and just doesn't give it much thought. I am at my wit's end on this.
She is married but her husband is no help and his name isn't on the loan papers. so he doesn't care. She doesn't make enough money to make any kind of payment on this mess.
If anyone has any info or advice I would appreciate it.
One can thank Bush for this mess, when he and the repubs. “reformed” the bankruptcy laws in approx. 2005 they wrote, in the new law, student loans could not be discharged via bankruptcy, thus fulfilling a favor for one of Bushes big doner’s the CEO of Sallie Mae, Alford Lord.
This eliminated any credit or means testing for student loans and enabled/encouraged the loans to be given out like candy to borrowers who had no business being in college.
Also encouraged the existence of useless colleges like culinary schools, art/design schools, mechanic schools, dental hygiene schools, IT maintenance schools et al which charged exorbitant tuition for degrees that tried to replace in the field training. We still see them advertising all the time on late night cable channels.
Do you remember how expensive a college application was bAck then couple of hundred bucks. Now with common app the apply to 10 to 15 colleges.
I stopped complaining about govt helping out my fellow Americans when it became ok - according to Bush and his Republican cheerleaders - for US government to spend trillions on Middle East wars and nation-building (including education and health care for the people in the countries we invaded). Trump puts the total cost of Bush-GOP invasions and nation-building at $7 trillion. If we can spend that kind of money overseas (without any Republicans can objections - before Trump came along) I’m not going to begrudge helping American kids who’ve been enslaved to debt by liberal-Democrat universities
Universities are also responsible. Charge lots of money for degrees which do not lead to a good job.
Yes, the liberal-dominate universities cost way too much. Trump and the GOP could go to town with this issue. Why they don’t I don’t know. I believe Bannon has said its a powerful populist issue just waiting for someone to take it up.
The reason this is not a political issue is because the media and Democrats (same) know all this money is being funneled into leftwing bank accounts. Republicans are too stupid to say anything for fear someone may say, “boo!”
The first thing a Republican should do is say that no university with endowments of more than $500 million are eligible for any type of student aid — at all. There are many universities sitting on BILLIONS in endowments, more than the net worth of small nations, and yet they keep raking in federal student loan money. They should be forced to use their endowment money for student aid first and then be considered for government aid.
But the issue of an out-of-control higher education has been written about extensively since the early 1980’s, so this is not new. The cost of higher education has rocketed past inflation for decades, and no one says a peep. Republicans are too afraid, and Democrats do not want to kill the golden goose.
LMAO—“degree in feminist dance therapy!”
But the thing is, there are probably real colleges/universities who have such stupidity as part of their curricula.
We’ve got a modest mortgage and do have a car note.
I could pay it off but I’m making more money in investment interest than the interest payment on the car, so I figure that I’m ahead of the game.
Only ever buy used cars, modest homes.
Kids are all gone so life is more comfortable now but I still only buy clothes on clearance.
You are a good bro and you gave your sis sound advice. All my kids student loans were in their name only. I never did a parent plus loan. If they dont pay its on them not me although I would try and help.
A priv College cost like 3k a year in late 60s early 70s. Your sis made a bad fin decision
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.