The Striking Reason Why The US Just Spent A Record $429 Billion In One Month

The Striking Reason Why The US Just Spent A Record $429 Billion In One Month:

The US just saw the biggest one month outlay on record, at $429 billion, 33% higher than the $323 billion one years ago. The reason for this, however, is even more striking than the number itself: it appears the student loan bubble has started to burst.

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Bill Introduced Allowing Cancellation Of Over $1 TRILLION In Student Debt Through Bankruptcy

Bill Introduced Allowing Cancellation Of Over $1 Trillion In Student Debt Through Bankruptcy:

And since the government owns most of the student loans, it would basically be yet another taxpayers bailout for those who loaded up on debt and now are unable to repay it. Meanwhile, if massive amounts of debt were erased, it would be another bubble bursting, which would send the U.S. into a fresh round of economic instability.

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Trump Administration Rolls Back Obama Protections On Student Loans

Trump Administration Rolls Back Obama Protections On Student Loans:

Just days after reports emerged that student loan defaults are soaring, which is undoubtedly due to some combination of, among other things, poor job prospects for the millions of snowflakes who graduate each year with their $200,000 educations in anthropology and the moral hazard created by liberal politicians constantly calling for student debts to be ‘forgiven’ (a.k.a. forcefully jammed down the throats of taxpayers), the Trump administration has revoked rules put in place by Obama that barred student debt collectors from charging penalty fees on past-due loans.

Originating from the Department of Justice, the “Dear Colleague” letter (full letter included at end of post) says that Obama’s unilateral rules implemented in 2015 could have “benefited from public input”…but what good is being King if you can’t unilaterally force new laws on the masses? Per the Washington Post:

H/t reader squodgy:

“And so it ends.

This could go pear shaped if parents guaranteed the loans.”

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America’s Problem with Student Loans Is Much Bigger Than Anybody Realized

America’s Problem with Student Loans Is Much Bigger Than Anybody Realized:

The Department of Education recently released a memo admitting that repayment rates on student loans have been grossly exaggerated. Data from 99.8% of schools across the country has been manipulated to cover up growing problems with the $1.3 trillion in outstanding student loans. New calculations show that more than half of all borrowers from 1,000 different institutions have defaulted on or not paid back a single dollar of their loans over the last seven years.

Read moreAmerica’s Problem with Student Loans Is Much Bigger Than Anybody Realized

Watch America’s student-loan debt grow $2,726 every second

Watch America’s student-loan debt grow $2,726 every second:

 Introducing the national student loan debt clock

It’s not uncommon to hear that the growth in student loan debt is like a time bomb threatening to blow up the U.S. economy. Now, you can watch it tick.

Read moreWatch America’s student-loan debt grow $2,726 every second

Why Seven Million Student Loan Defaulters Are In A Standoff With Uncle Sam

Why Seven Million Student Loan Defaulters Are In A Standoff With Uncle Sam:

As the 2016 election cycle heats up, we suspect the debate over student loan forgiveness will become an ever bigger issue with the Hillary camp looking to woo young voters that aren’t quite as “enthusiastic” about her Presidency as they were about Obama’s.  We also suspect that students, helpless “victims” of predatory lenders looking to give them $200,000 to pursue their dreams of becoming anthropologists while consuming copious amount of free beer at frat parties, will grow increasingly vocal in asking why the Nanny State would have given them so much money to pursue non-existent “careers”.

To put the student loan issue into perspective, there is roughly $1.3 trillion of student loans outstanding to 43mm Americans, an average balance of $30k per student.  Roughly 16% of borrowers are currently in long-term default with outstanding balances totaling $125 billion, or an average balance of $18k per student.

Read moreWhy Seven Million Student Loan Defaulters Are In A Standoff With Uncle Sam

What Student Loans Are Used For: Vacations, iPads, Kegs, Entertainment

What Student Loans Are Used For: Vacations, iPads, Kegs, Entertainment:

“Checks were celebrated across the campus as almost like a bonus for being a college kid. [Students] would go directly to the bank to cash it. I bought electronics for my dorm room and drinks were on me for a month or two. In an abstract way, I knew I would have to pay it back. But you don’t have a timeline in your mind about what that was going to look like. I just knew it would happen later.”

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And So It Begins: Obama Forgives Student Debt Of 400,000 Americans

Obama-Satanic-Hang-Sign

It Begins: Obama Forgives Student Debt Of 400,000 Americans:

Joining the ranks of “broke lawyers” who can cancel their student debt, “Americans with disabilities have a right to student loan relief,” now according to Ted Mitchell, the undersecretary of education, said in a statement. Almost 400,000 student loan borrowers will now have an easier path to a debt bailout as Obama primes the populist voting pump just in time for the elections.

On top of “the student loan bubble’s dirty little secret,” here is another round of student debt relief…as MarketWatch reports,

The Department of Education will send letters to 387,000 people they’ve identified as being eligible for a total and permanent disability discharge, a designation that allows federal student loan borrowers who can’t work because of a disability to have their loans forgiven. The borrowers identified by the Department won’t have to go through the typical application process for receiving a disability discharge, which requires sending in documented proof of their disability. Instead, the borrower will simply have to sign and return the completed application enclosed in the letter.

Read moreAnd So It Begins: Obama Forgives Student Debt Of 400,000 Americans

Department of Education Wonders Why Over 40% Of Student Borrowers Don’t Make Payments

Department of Education Wonders “Why 40% of Student Borrowers Don’t Make Payments”; Blame Bush (Seriously)!:

Over 40 percent of those in student loan programs have stopped making payments. Many borrowers have never made any payments.

The department of education (a useless body that I would eliminate in one second if given the chance), cannot figure out why this is happening.

“We obviously have not cracked that nut but we want to keep working on it,” said Ted Mitchell, the Education Department’s under secretary.

The Wall Street Journal reports More Than 40% of Student Borrowers Aren’t Making Payments.

Read moreDepartment of Education Wonders Why Over 40% Of Student Borrowers Don’t Make Payments