Student Loans: The Elephant In The Room?

Fri, 03/30/2012 - 17:09 EDT - Seeking Alpha

Everyone tries to predict the next big bubble, black swan event, or bear market. We may not directly think of these events but they are often factored into the "downside risk" question we ask when investing. Government bonds tend to be a hot topic, and rightfully so... But one subject that is often overlooked is educational loan debt. The purpose of this article is to identify the known and unknown facts about student loans, and my opinion as to how this will affect our overall macro economic conditions.Educational loans more popularly known as "student loans" are a unique lending vehicles that are possibly known as the best and safest way to make money, should you be on the lending end.Why would I say "best and safest" for lenders?1. Borrowers can NEVER get rid of student loans, even in bankruptcy (well there are very specific circumstances, mainly death,Complete Story »

Original article
Login to post comments

One Company Is Working Hard To Make Sure Your Student Loans Stay With You Until You Die
(Donkey Hotey)
What Consequences? Judge Rules Student Loans Of Broke Lawyers Can Be Cancelled
Following SCOTUS' decision not to hear a case making it easier to get rid of student debt, and The White House's push to ease student loan 'burdens', WSJ reports a federal judge ruled law-school graduates who file
5 Ways Recent Grads Can Pay Off Their Student Loans
If you're in your 20s, you're probably going through one of the toughest financial periods of your life -- especially if you went to college.
Corinthian Sells 56 Everest, WyoTech Campuses To Loan Servicer ECMC In $24M Deal
Corinthian Colleges Has agreed to sell half of its campuses including some Everest and WyoTech schools.
Investors are looking for 2008-like 'black swans' that just aren't out there
China Photos/Getty ImagesThings aren't looking great in the stock market.
You’ll Never Guess the Latest Victims of the Student Loan Crisis
Most debt you can get out of—painful as it might be. Credit card debt can be cleared in bankruptcy. A mortgage can end in foreclosure. But student debt is more sticky, and it turns out it can have big consequences in retirement. Last year, Richard Minuti’s Social Security payments were cut by 10%.
You’ll Never Guess the Latest Victims of the Student Loan Crisis
Most debt you can get out of—painful as it might be. Credit card debt can be cleared in bankruptcy. A mortgage can end in foreclosure. But student debt is more sticky, and it turns out it can have big consequences in retirement. Last year, Richard Minuti’s Social Security payments were cut by 10%.
"Cancel All Student Debt" - The Petitions Begin
With global moral hazard having long ago become institutionalized, and codified as "monetary policy", catering almost exclusively to the TBTF entities in the financial sector, we were surprised it took as long as it did for Obama to announce (as he did last week), that the administration is now studying "new bankruptcy options" for student loan borrowers: code word for an across the board student debt moratorium, or forgiveness.
Am I Completely Screwed If My Student Loan Co-Signer Dies?
Imagine this scenario: You’ve been out of college for several years, have a good job and you have no problems making your student loan payments in full and on time. Then tragedy hits; your parent dies or declares bankruptcy. If this loved one was a co-signer on your student loan, this change can trigger an often-overlooked clause that allows the lender to claim you are in default on your loan, potentially wreaking longterm havoc on your credit and finances.
Transforming Student Loans from Taxes Back into Debt
James Pethoukoukis notes the skyrocketing ratio of student loan debt to household income, the currently spiking default rate on student loans, and wonders if a new federal government bailout is in the works:

Main menu

Secondary menu

Student Loans: The Elephant In The Room?

Related

Latest

Markets Map

Follow Us

Secondary menu