- Over $41bn in student loan profits for US government (PressTV, Nov 27, 2013):
The federal government of the United States made a profit of $41.3 billion on student loans for the 2013 fiscal year.
Although the profit is $3.6 billion less than the that the US government reaped from distressed borrowers the previous year, it is a profit higher than that made by all but two companies, Exxon Mobil and Apple, in the world.
According to David Jesse, who writes for the Free Press, the profit is enough to pay for the tuition of nearly 3,000,000 Michigan residents at the University of Michigan for one year.
- Princeton to use students as vaccine experiment subjects with rollout of non-approved meningitis vaccine (Natural News, Nov 16, 2013):
Princeton University is poised to move forward on a plan that would transform the entire student body into human guinea pigs for a campus-wide vaccine medical experiment. Responding to nothing more than a handful of students contracting mild meningitis (and then fully recovering), Princeton now wants to inject ALL students with a vaccine that isn’t even approved for use in the United States, thereby making it a vaccine experiment with unknown outcomes that must, by definition, include risk.
Meningitis is often spread through people sharing drinking cups, but like nearly all communicable diseases, it is easily conquered by a healthy immune system (which is, of course, supported by good nutrition). Even the small number of students who contracted meningitis at Princeton were able to conquer it without serious incident, and most college students live on processed junk food and atrocious diets!
Princeton falls for quack science of the for-profit vaccine industry
- Dear Recently Graduated Millennials: Prepare To Work Until You Are 73 (ZeroHedge, Oct 25, 2013):
Our advice to recently graduating Millennials? Live long.
Because according to a just conducted analysis by NerdWallet, looking at the future of the average recent college graduate, and more importantly looking at the mountain of student loans each graduate will be saddled with and the implications for the earliest possible retirement age onset, Millennials may well have no choice but to postpone their retirement by about a decade, to the ripe old age of 73.
The reason for this, of course, is the magic of compounded interest: that “manageable” debt load grows and grows and grows even assuming one dutifully pays interest on time. And with unemployment at graduation running at 18%, that is a rather generous scenario. Still, even under base case assumption, the median student loan of $23,300 will end up costing students over $115K by the time they retire.
What does that mean in practical terms? “When will students be able to retire given that many are spending the first ten years (or more) of their careers paying off their hefty loans? NerdWallet… found that while retirement is certainly not impossible, for most it will have to wait until their early to mid 70s— over 10 years later than the current average retirement age of 61.” It goes without saying that all else is assumed equal. Alas, in the America’s welfare state future, few things will be equal, and most things will be far worse.
Which, one wonders, may be the secret plan after all: since by now everyone knows that the US’ welfare state is unsustainable for the mid- and certainly long-term future, what better way to avoid draining it, than to force those who would otherwise benefit into at least ten more years of work to pay off debts accumulated over 50 years earlier. Continue reading »
- Next “Subprime Crisis” Expands As Student Loan Defaults Hit $146 Billion, Highest Default Rate Level Since 1995 (ZeroHedge, Oct 1, 2013):
Almost exactly one year ago we wrote “The Next Subprime Crisis Is Here: Over $120 Billion In Federal Student Loans In Default” in which we took the latest (2009 three year cohort) loan default data on Federal Student Loans released by the Department of Education and applied it to the total amount of student loans outstanding, which back then was $914 billion. Yesterday, ED.gov provided its annual update - this time to the 2010 three year and 2011 two year cohorts – and to nobody’s major surprise, learned that things just got even worse. To wit: “The national two-year cohort default rate rose from 9.1 percent for FY 2010 to 10 percent for FY 2011. The three-year cohort default rate rose from 13.4 percent for FY 2009 to 14.7 percent for FY 2010.” Putting this in context, according to Bloombergdefaults have risen to the highest level since 1995. The irony that this is happening in the aftermath of Bernanke’s disastrous ZIRP policy is not lost on anyone.
Quantifying this percentage, recall the NY Fed reported in its second quarter household credit update that the amount of total outstanding student loans has now risen to $994 billion, or $80 billion more in just one year:
… one can calculate that the current amount of non-performing loans originated in 2010 is now a whopping $146 billion (the full total amount of student loans owed is $1.2 trillion when including private loans from the likes of Sallie Mae – this sum surpasses all other kinds of consumer borrowing expect for mortgages). Unfortunately, as the economic situation has only deteriorated since then especially for student-age Americans, the real blended amount of student loans in default is almost certainly substantially higher as of this moment.
The Education Department had this commentary: Continue reading »
- Student Loan Rates Set To Double On July 1 (NPR, June 28, 2013):
The interest rate on government-backed student loans is going to jump from 3.4 percent to 6.8 percent Monday.
Republicans, Democrats and the Obama administration could not agree on a plan to keep it from happening. Lawmakers say a deal is still possible after the July 4 recess. But if they don’t agree on a plan soon, 7 million students expected to take out new Stafford loans could be stuck with a much bigger bill when they start paying the money back.
- Fed Shocked To Find Student Loans Used For Anything But To Learn (ZeroHedge, June 24, 2013):
Since January, under pressure from the Fed, the Education Department has flagged 126,000 applicants attempting to pocket federal loans and grants without any intent of going to school. As the WSJ reports, officials are cracking down on fraud in student-aid programs after evidence of recipients – acting alone or as part of organized crime rings – misusing funds. “What we find are very poor students academically that are borrowing to the max, getting the maximum in their Pell grant and just going from school to school,” noted one director of financial aid, with roughly $829 million in Pell grants as “improper payments,” in the last year. Rather stunningly, more than 34,000 participants in crime rings improperly received federal student aid last year, up 82% from 2009. “We started seeing student borrowing that was just over the top with no explanation for why,” another director noted, adding “it’s not so much about the education, it’s the money.”
Most federal student aid requires no credit check and comes with few restrictions on how the money is spent and Federal officials say the Internet has helped fuel student aid fraud.
Via The WSJ,
Federal officials are cracking down on fraud in student-aid programs, responding to evidence that a growing number of recipients—acting alone or as part of organized crime rings—are pocketing federal loans and grants without any intent of going to school.
Since January, the agency said it has flagged 126,000 applicants, about 1% of all those seeking aid for the 2013-2014 school year.
- 20 Completely Ridiculous College Courses Being Offered At U.S. Universities (Economic Collapse, June 5, 2013):
Would you like to know what America’s young people are actually learning while they are away at college? It isn’t pretty. Yes, there are some very highly technical fields where students are being taught some very important skills, but for the most part U.S. college students are learning very little that they will actually use out in the real world when they graduate. Some of the college courses listed below are funny, others are truly bizarre, others are just plain outrageous, but all of them are a waste of money. If we are going to continue to have a system where we insist that our young people invest several years of their lives and tens of thousands of dollars getting a “college education”, they might as well be learning some useful skills in the process. This is especially true considering how much student loan debt many of our young people are piling up. Sadly, the truth is that right now college education in the United States is a total joke. I know – I spent eight years in the system. Most college courses are so easy that they could be passed by the family dog, and many of these courses “study” some of the most absurd things imaginable.
Listed below are 20 completely ridiculous college courses being offered at U.S. universities. The description following each course title either comes directly from the official course description or from a news story about the course… Continue reading »
- Schools scanned students’ irises without permission (RT, May 30, 2013):
Parents in Polk County, Florida are outraged after learning that students in area schools had their irises scanned as part of a new security program without obtaining proper permission.
Students at three facilities — an elementary school, a grade school and a high school — had their eyeballs scanned earlier this month as part of a ‘student safety’ pilot program being carried out by Stanley Convergent Security Solutions.
“It simply takes a picture of the iris, which is unique to every individual,” Rob Davis, the school board’s senior director of support services, wrote home to parents in a letter dated May 23. “With this program, we will be able to identify when and where a student gets on the bus, when they arrive at their school location, when and what bus the student boards and disembarks in the afternoon. This is an effort to further enhance the safety of our students. The EyeSwipe-Nano is an ideal replacement for the card based system since your child will not have to be responsible for carrying an identification card,” he added.