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Obama's decision to nationalize the Student loan program will cost Feds Billions.
SFGbob
Member Posts: 33,183
in Tug Tavern
Ah yes, the efficiency and cost savings when you let the Federal government take over an industry.
Aug. 21 (UPI) -- The total amount of household debt in the United States has grown for the 20th consecutive quarter and student loans have become the most prevalent type of "severely derogatory" debt, new statistics show.
The Federal Reserve Bank of New York said in its quarterly report household debt climbed by nearly $200 billion in the second quarter, to nearly $14 trillion.
Not only has rising student debt become the most defaulted, the New York Fed classified the spike over the last few years as "stunning."
"The outstanding severely derogatory balance is comprised of 35 percent defaulted student loans, which have grown stunningly since 2012," the report states.
The New York Fed defines "severely derogatory" as any kind of delinquent loan -- along with repossession, foreclosure or charge off -- meaning the lender has removed a debt from its books.
The report also found that student loan delinquency rates increased by 10 percent for the period between April and July, transitioning at high levels to relative types of debt.
Ashley Harrington, senior policy counsel at the Center for Responsible Lending, says one reason for the high rate of derogatory student debt is that 90 percent of outstanding loans are federal loans, which take longer to default.
"For federal loans, you are not defaulting until 270 days delinquent, and even then it takes a bit longer to show up on your credit report," she said. "Whereas we know very soon when someone is struggling with payments on their credit cards or their cars, or their houses, it takes much longer for us to really register the extent of the issue with student debt."
Aug. 21 (UPI) -- The total amount of household debt in the United States has grown for the 20th consecutive quarter and student loans have become the most prevalent type of "severely derogatory" debt, new statistics show.
The Federal Reserve Bank of New York said in its quarterly report household debt climbed by nearly $200 billion in the second quarter, to nearly $14 trillion.
Not only has rising student debt become the most defaulted, the New York Fed classified the spike over the last few years as "stunning."
"The outstanding severely derogatory balance is comprised of 35 percent defaulted student loans, which have grown stunningly since 2012," the report states.
The New York Fed defines "severely derogatory" as any kind of delinquent loan -- along with repossession, foreclosure or charge off -- meaning the lender has removed a debt from its books.
The report also found that student loan delinquency rates increased by 10 percent for the period between April and July, transitioning at high levels to relative types of debt.
Ashley Harrington, senior policy counsel at the Center for Responsible Lending, says one reason for the high rate of derogatory student debt is that 90 percent of outstanding loans are federal loans, which take longer to default.
"For federal loans, you are not defaulting until 270 days delinquent, and even then it takes a bit longer to show up on your credit report," she said. "Whereas we know very soon when someone is struggling with payments on their credit cards or their cars, or their houses, it takes much longer for us to really register the extent of the issue with student debt."
Comments
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This is from 2015, and as you can see from the article above the problem has only gotten worse.
The very same asswholes who are telling us now that a Single Payer Federalized health insurance program will save us money were telling us the exact same thing in 2010 when Obama took over the Student loan program.
Obama sold this government takeover as a way to save money — why bear the costs of guaranteeing private loans, he said, when the government could cut out the middleman and lend the money itself?
The cost savings didn't happen. In fact, the Congressional Budget Office just increased its 10-year forecast for the loan program's costs by $27 billion, or 30%.
https://www.investors.com/politics/editorials/obama-created-student-loan-crisis-with-1-trillion-in-loans/ -
Trump has been president for over two and a half years. Why hasn't he fixed it yet?
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Why haven't all those interpretive dance majors found high paying jobs?2001400ex said:Trump has been president for over two and a half years. Why hasn't he fixed it yet?
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He was the enabler. Free money for stupid shit.2001400ex said: -
I took out 10k for beer and raging in mexico.
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Pole dancers make money
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So you can't actually point to a bill that caused this. Got it.SFGbob said: -
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html -
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years. -
I just proved you wrong and you bash Trump.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years.
It's CNN they'll praise Obama regardless and slam Trump. Hope this helps. -
If you don't max out your loans to support a Coke habit, we can't be friends.Pitchfork51 said:I took out 10k for beer and raging in mexico.
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You guys realize that all Obama did was move the timeline up on existing laws right?
https://www.theatlantic.com/business/archive/2011/10/obamas-student-loan-order-saves-the-average-grad-less-than-10-a-month/247411/ -
Enactment of the CCRAA
The legislation to create the CCRAA passed quickly from bill to law with bipartisan support in both House and Senate. Rep. George Miller (D-CA), Chairman of the House Education and Labor Committee, drafted the initial bill (H.R. 2669), with input from Ranking Member Howard P. McKeon (R-CA). It was passed by the House on July 11, 2007. The Senate passed its version of the Act on July 20, 2007. A conference committee report to resolve differences between the House and Senate versions, and to ward off a threatened Presidential veto, was approved on September 7, 2007 (PL 110-84). -
And this is exactly why I didn't bother to provide a link.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years. -
Bob finally admits he didn't provide links cause they show he's an idiot.SFGbob said:
And this is exactly why I didn't bother to provide a link.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years. -
There wasn't a timeline for the Federal Government to take over the and start administrating the student loan system you lying piece of shit.2001400ex said:You guys realize that all Obama did was move the timeline up on existing laws right?
https://www.theatlantic.com/business/archive/2011/10/obamas-student-loan-order-saves-the-average-grad-less-than-10-a-month/247411/ -
Hondo admits he is fucking moron and didn't understand what he linked to. Go ahead Kunt, show me where there was existing legislation already passed and enacted for the Federal Government to take over the student loan business that Obama just "sped up." And I did provide a link you pathological lying piece of shit.2001400ex said:
Bob finally admits he didn't provide links cause they show he's an idiot.SFGbob said:
And this is exactly why I didn't bother to provide a link.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years. -
https://www.google.com/amp/s/www.communitycollegereview.com/amp/blog/the-college-cost-reduction-and-access-act-of-2007SFGbob said:
Hondo admits he is fucking moron and didn't understand what he linked to. Go ahead Kunt, show me where there was existing legislation already passed and enacted for the Federal Government to take over the student loan business that Obama just "sped up." And I did provide a link you pathological lying piece of shit.2001400ex said:
Bob finally admits he didn't provide links cause they show he's an idiot.SFGbob said:
And this is exactly why I didn't bother to provide a link.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years. -
Another link that doesn't back up your fucking mouth. That legislation didn't Federalize the student loan program. Would you like to try again dumbfuck?2001400ex said:
https://www.google.com/amp/s/www.communitycollegereview.com/amp/blog/the-college-cost-reduction-and-access-act-of-2007SFGbob said:
Hondo admits he is fucking moron and didn't understand what he linked to. Go ahead Kunt, show me where there was existing legislation already passed and enacted for the Federal Government to take over the student loan business that Obama just "sped up." And I did provide a link you pathological lying piece of shit.2001400ex said:
Bob finally admits he didn't provide links cause they show he's an idiot.SFGbob said:
And this is exactly why I didn't bother to provide a link.2001400ex said:
Your link says Trump wants to make it worse.Sledog said:
Fuck you'e dumb.2001400ex said:
So you can't actually point to a bill that caused this. Got it.SFGbob said:
Even the Communist News Network knows so I know you know.
https://money.cnn.com/2016/11/30/pf/college/obama-student-loan-cost/index.html
But that kind of legislation could be met with pushback from the president-elect. During the campaign, Trump said he would make Obama's program even more generous by capping monthly payments at 12.5% and cutting the repayment period down to 15 years.
In 2010, President Obama effectively nationalized student lending by cutting banks — which had been offering government-backed loans to students — out of the equation and having the government make the loans itself.
"By cutting out the middleman, we'll save the American taxpayers $68 billion in the coming years," Obama said when he signed this change into law. "That's real money."
As a result, federal student loan debt shot up from $154.9 billion in 2009 to $1.1 trillion by the end of 2017.
https://www.investors.com/politics/editorials/student-loans-will-cost-taxpayers-36-billion-thanks-obama/
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You can always tell when Hondo has fucking nothing. The Wikipedia links with no comments start appearing.
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I'm sorry that facts bother you.SFGbob said:You can always tell when Hondo has fucking nothing. The Wikipedia links with no comments start appearing.
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About 10% of the $1.5 trillion federal student-loan portfolio is 30 days or more past due. Another 20% is in deferment or forbearance, and about 30% is in income-based repayment plans that allow most borrowers to cap monthly payments at 10% of discretionary income and discharge the remaining balance after 20 years or 10 for folks in “public service.”
Congress created these nifty plans in 2012 for new borrowers, but then the Obama Administration expanded them retroactively to reduce defaults, buy off millennial voters and disguise the cost of its student-loan takeover. This may be the biggest accounting fraud in history.
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Democrats in the 1990s created a public student-loan option to compete with subsidized private lenders. Then in 2010 they nationalized the market to help pay for Obama Care. The Congressional Budget Office at the time forecast that eliminating private lenders would save taxpayers $58 billion over 10 years. This estimate was pure fantasy, and now we’re seeing how much.
The government student-loan portfolio has since doubled while severely delinquent loans have spiked despite a good economy. Many borrowers in income-based repayment plans aren’t repaying principal, so their balances are growing as they accrue more interest. By 2012 a majority of new borrowers had bigger balances after two years of making payments.
Yet during the Obama years CBO scored student loans as a government profit center by underestimating the growth in income-based repayment plans. CBO has slowly scaled back its 10-year revenue projections for student loans to a $31.4 billion government cost in this year’s forecast from a $219 billion 10-year revenue gain in 2012.
The nearby chart tells the story. Using fair-market accounting that prevails in the private economy, CBO now projects a $306.7 billion cost to taxpayers over the next 10 years. The red ink will be far worse beyond that 10-year budget window.
Another non-surprise: The government is spending more to administer student loans than the Obama crowd forecast. In 2010 the government spent $800 million on “administrative costs,” which CBO projected would increase to $1.2 billion in 2019. The government’s overhead tab this year was $2.9 billion.
https://www.wsj.com/articles/the-great-student-loan-scam-11566343674 -
What facts? Obama nationalized the student loan program and he lied with the promise that it will save us money. Just like you Kunts are lying now about how Single payer healthcare will save us money.2001400ex said:
I'm sorry that facts bother you.SFGbob said:You can always tell when Hondo has fucking nothing. The Wikipedia links with no comments start appearing.
You've posted nothing that refutes any of that.
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so many proprograms to buy votes with tax dollars.
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You mean like trump sending out giveaways to farmers to make up for his stupid trade war?Sledog said:so many proprograms to buy votes with tax dollars.
