Winged Wheeler

LowSlowT2

Funny how that sharp uptick in student loan late payments coincides perfectly with the Occupy Wall Street timeline... (fall '11).

Pielut

I think this is dead on. There is a major credit and Student Loan bubble out there. No jobs for new grads and the jobs they can get do not pay enough for the loan payments. This is going to be a major problem.

LowSlowT2

I'm not debating that. But do you not find it more than just coincidental that the uptick in late student loan payments begins exactly when OWS hit the streets. I think it's far more than mere coincidence, I think it's those clowns who all think their debt should be wiped clean simply not paying out of "principle".

I know a friend of a friend - just finished anesthesia school & owes something like $175K in student loans - she thinks she shouldn't have to pay it - she genuinely believes she is owed any education she wants. She makes just shy of $200K now and thinks she shouldn't pay her loans off. Scary.

Pielut

I see what you did there

This is exactly the problem. Too many people taking out a ton of money for an education and thinking that they should not have to sacrifice anything to get it. This person you mention is making 16k a month gross and won't pay back 1k a month. Just plain stupid.

MongoPawnInLife

After $175K in loans, she hasn't learned the definition of 'nondischargeable'. No worries; the school of hard knocks should educate her on that knowledge gap.
She can elect to pay cash for everything for a while because she won't find credit at reasonable terms. But eventually some really bad stuff happens to those that have the ability to repay but choose not to - tax refunds, wage garnishment, revocation of professional licenses, lawsuits. The school of hard knocks gets painful if you think that they'll eventually forget - there is no statute of limitations on collecting student loans. What Happens When You Default on Your Student Loans

But where the school of hard knocks delivers a costly education on loan default is that they can assess some pretty steep penalties and fees on top of your loan balance. The draconian hidden penalty on student loans - The Term Sheet: Fortune's deals blogTerm Sheet


Are they going to go after an OWS Starbucks barrista living in his parents' basement who's blowing his weekly tips on a dime bag? Unlikely. But someone earning six figures is low hanging fruit.

UnderOveur

America desperately needs an enema to flush out filth like this, and the POSs they vote for, too.

LowSlowT2

I guess I left all that to your imagination - she is paying her loans, she's just *****ing about it and thinks she shouldn't have to...which is an issue.

mike734

Or the huge expansion of for profit "universities."

Outlaw2097

I'd argue that during the Great Recession more people went back to school when they were out of a job. Replace the credit card with a student loan, factor in the six month window, and that may explain why it started to climb at the end of 2011. It may make a little more sense for them pay off the 24% interest credit card before focusing on the 6% student loan, but hey, that is their call.