Is the student loan crisis/collapse actually going to happen?

Is the student loan crisis/collapse actually going to happen?

No. There are plenty of people who took student loans for real fields of study and pay them or have paid them off.

People may not default on their loans en masse, but paying back all that debt is definitely going to weigh on the economy so it really depends on what your definition of "student loan crisis" is.

Best case scenario you applied yourself by working your ass off so you can get mediocre $50k-60k a year pay in engineering, software, or healthcare. Even the people who did what they were supposed to are going to be facing scarce job opportunities because of STEM oversaturation. If you didn't apply yourself then you're just flat-out fucked.

If this was a legit problem it would have already happened already. We weathered through the global economic crisis without massive student loan default.

This is probably something that people who don't feel like paying their loans back say.

not before the social security collapse/crisis comes into play.

Yes.

The problems are 3 fold:
>a lot of people are gonna default on the debts
>the debts are massive
>the same people defaulting on the debts are woefully unprepared for real life and the requirements for work

I sense the next crisis to be both a monetary one and a social one as you'll have a generation of social media whiners that can't do real work.

Every generation thinks that about the next generation, but due to the advances in computers and the internet, it might actually be true this time.

We are on the verge. I'd say pay close attention to what happens around 2020.

>GUYS 2020
>GUYS 2012
Jesus. At least the 2012 fags had some facts to back their claim.

I didn't chose 2020 cause it's some meme year, I chose 2020 because it's my way of saying that within a 5 year window I think we are gonna see some heavy fallout from the student loan debacle.

I'd say 2019 - 2022 the issues will become apparent.

>5 year window I think we are gonna see some heavy fallout from the student loan debacle.
Can't argue with you there. Social Security is probably going to run out around that time too. So there's two things that the "greatest generation" fucked us over on.

Let's pretend it does happen. How can we profit from this?

How the fuck is there a loan crisis? You can only have a crisis if you can't collect on the debt. You can't default on student loan debt, so it's not going away. The average student loan debt is 30k, so it is easily manageable. Won't pay? They'll just garnish wages. The only way you get away is if you renounce your citizenship and live somewhere else.

We're obviously not there yet. Supposedly many people who are taking on these liabilities are still living with their parents. In addition to that, the costs are rising. There's going to be a point where these people will have to get out into the real world and their expenses will naturally increase. It may not be their parents kick them out. They may die, for example. Maybe a percentage of them will be bailed out by life insurance money. It's a long tail game. There's going to be a point where it's not sustainable.

I'd like to correct your statement in that you can't "default" on a student loan. You sure as shit can not make payments. More accurately, you can't include them as part of bankruptcy. So if a large number of people are no longer under their parents, can barely afford bills to begin with, and have wage garnishment. Suicide? Homelessness? Something has got to give...We can't assume that everybody in these situations are making a ton of money off their education, especially if they were going to be teachers.

It's complex and we're not there yet. I'm interested in how it pans out.

You are grossly misinformed. Its pretty easy to bail on the debt. And everyone is gonna do it.

Bingo

elaborate please

THEY PHYSICALLY WON'T BE ABLE TO PAY IT.

How's that for elaboration?

>They'll just garnish wages

Then they won't work. Especially the women who pooped out a couple of sprogs.

What kind of moronic world do we live in where money doesn't just sprout out of the ground? It takes work.

honestly senpai the economy/world in general will be in for MUCH bigger problems come ~5-10 years then just these issues

than* ftfy

But you know, call me senpai, i get it

Nah I caught that too, too lazy to repost senpai a lam lol

fair enough lol

You wanna know what drives me nuts? Total segue. I know someone who is doing the whole "public work" gets freedom from these loans after 10 years. With their interest rates and minimum strict payments(you're not allowed to pay extra), and you do the math, they're paying off their principle and then some interest. On the surface it sounds like a good deal, but financially they're better off paying it off early.

>Social Security is probably going to run out

Social security won't run out. The fed will just keep printing money to pay for it. You'll see Venezuela tier inflation before social security 'runs out.' Hell, you'll likely have much bigger problems to worry about by the time social security becomes defunct.

Do people still count SS toward their projected retirement income? That'd be hilarious.

Don't know. It's fucking disgusting that I have to pay for it, though. I should be allowed to opt out of it.

Agreed. Any type of forced money is greed and theft

I walked out with a CS degree and a 105K a year job with 30K debt

Payed it off before it even gained interest and went on my way

The real economic impact is all those people who can't pay it off and can't afford to stimulate the actual economy instead of paying jews their interest and loans

>current generation all have lots of student loan debt

>politician comes along and wants there votes to get power

>politician promises a "fairer world" ™ by saying you dont need to pay student loan unless your earning $70k/yr

the people who payed back their loans to the fullest would explode from rage user. fairer world huh? i almost paid back the entire thing i would go ballistic if someone would waive the loans. i would want my money back.

No. Even if they are bankrupt as shit or declare just that. It's legal in US for wage garnish and debt refinance well after the bankruptcy. You will pay it off.

However the bigger looming crisis would be OMO and volume of Treasury bills. The belief of money acceleration to both benefit 'economy' and refinance US debt cheaper is slowly compromising global trust, even at a time of international economic fragility. 5-10 years from now someone will eventually freak over the amount of dollars and start trading in their bonds initiating an inflationary run.

but user, you are only wealthy because you exploit the rest of them ; )

also, the loans arent waived - they are just "fairer" ™ as you dont have to pay unless you earn over $70k

Just ignore the fact that the majority wont earn over 70k....

if i earned more than 70k i could probably care less about all that. i won't see that amount of money in my life most likely.

But money requires a job tree. Burgers cut down all of theirs to sell the wood to the pajeets and slavs.

I'd be pretty assblasted if a bunch of "progressives" are allowed to default on federal loans that my tax dollars subsidize because they're too retarded to manage their finances.

I paid off the 10,000 I owed very easily.

It's already happening. The second great depression will make the first one look prosperous.

most likely, and the fuckers hoarding gold now will get hit hard with great chance. first all prices will plummet real estate stocks gold everything. then money prints start up in earnest to stop the "deflationary spiral" (ie the correction) and then as consumption eventually picks up we will have hyperinflation. by then every bagholder sold their "worthless shiny metals".

Outstanding student loans didn't really start going off the rails until the economic crisis.

Can I see that graph compared to the percentage of the population attending college out of highschool?

No. Subprime was 15 trillion dollars, student loans are 1 trillion

Let's forget about the federal loans because the government is a ferocious debt collector and will get their fucking money dont even think of defaulting on them.

The question is what percentage of people defaulting on their student loan payments does it take for the private student loans providers to collapse? 5%? 10%? And then, what's the default percentage that causes the collateralized loans to become worthless or toxic? Could be a different number.

I have little doubt that in the next five years we find out what these numbers are. It wont be a catastrophe though, and will probably force some amount of reform and maybe (just maybe) force universities to be a bit of more frugal in an effort to lower tuition.

People complain about the cost of college, but lets get real the quality of the amenities available now to college students is insane. These dorms are luxury apartments like you'd fine in SF or NY and the food at the cafeteria's is seriously good. Better than the vast majority of working Americans eat both in taste and in nutrition. There are real life chefs with ridiculous CV's serving up food for college students. And lets not even get started with the academic and athletic facilities that have even outpaced the private world. Its a completely different college atmosphere than when I went to school.

Point is this shit costs money and the natural people to have pay for it are the consumers (aka the students). The need to attract the best students has forced universities to spend massive sums of money to stay competitive, and eventually those students wind up paying for it. Its a broken system but its a broken system enabled by its supposed "victims".

THAT SAID--dont think because you saw The Big Short that you've "solved" the next financial crisis and can buy credit default swaps for student loans...because that's a terrible idea.