Student Debt Is a Major Reason Millennials Aren't Buying Homes

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Burn That Belly said:
Quick facts:

-$1.44 trillion in total U.S. student loan debt
-44.2 million Americans with student loan debt
-Student loan delinquency rate of 11.2% (90+ days delinquent or in default)
-Student loan debt is bigger than auto loan and credit card debt combined!

Are our kids screwed? Or are we just going to give them a bailout just like AIG in '08.
https://www.bloomberg.com/news/articles/2017-07-17/student-debt-is-hurting-millennial-homeownership

The median student loan debt is outpacing median wage growth. At some point, these two lines will cross!

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We've known about the student loan debt issue for a long time.

Some might be lucky though:
http://thehill.com/policy/finance/3...y-be-wiped-away-over-missing-paperwork-report
 
This has been a long time issue and now that the debt is growing in a bubble, there's a panick button. This issue should have been advertised many years ago and parents may have to bail out their kids' debt. The increase in tuition costs doesn't help and I blame the schools. Who benefits from this rising debt? The school!
 
What if you save those appreciation money from real estates and use for your kids collage tuition later instead of pouring them into the next move up house now?
 
Burn That Belly said:
Everyone says they know about the issue, but nobody seems to be doing anything about it. Where's the humanity in all this?

Are we just going to twiddle our thumbs like in 2007 when we knew the subprime crisis was imminent?

At least I see the students a few years ago marching in protests because of tuition hikes. But tuition hikes is one thing, student loan debt and interest rate is another.

You're right. At the end of the day,the parents will probably have to bail out the kids with a cash-out refi. I guess that's how the government sees it! The parents are also the one's cosigning the loans away, meanwhile the kids usually think it's free money and spend it on booze and party.

"Ah, we'll let the housing appreciate for the parents, but we'll take back all appreciation earnings from them in one fell swoop when they bail them out!" - The government (house) always wins.
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double edged sword here.  If you stop giving out the loans, tuition prices will have to increase and only the better off kids will go to the top schools.  Probably has to be the best way to go here and the system cannot sustain itself. 

To me, I think the solution will eventually reveal itself.  In a virtual world, you can just go to class online and accept in more kids while keeping tuition low.  They'll have to really crack down on giving out high student loans though. 
 
Best way to pay for college still seems to be buying real estate for rental. 
 
The underlying issue is the government guarantee of the student debt. Take away the guarantee, banks will lend less and therefore tuition can't go up.

 
qwerty said:
The underlying issue is the government guarantee of the student debt. Take away the guarantee, banks will lend less and therefore tuition can't go up.
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This is one issue the democrats won't let go of.. even though they know that it's inflating the bubble. 
 
jmoney74 said:
Best way to pay for college still seems to be buying real estate for rental.
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If your Asian change your last name so you can have a better chance for scholarships and college acceptance. (Just kidding)

or go to a school district with low ratings and your kid will be the top student with scholarships coming out of the ear. (Assuming your kid is smart)
 
jmoney74 said:
If you stop giving out the loans, tuition prices will have to increase and only the better off kids will go to the top schools.  Probably has to be the best way to go here and the system cannot sustain itself. 
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The opposite has been argued. By providing loans you increase the ability of prospective student to attend a school and thus increase the demand. Higher demand means they can (and will) charge more. Same can be said for any subsidized product. The whole thing ends up being a bit ironic.
 
eyephone said:
jmoney74 said:
Best way to pay for college still seems to be buying real estate for rental.
Click to expand...

If your Asian change your last name so you can have a better chance for scholarships and college acceptance. (Just kidding)

or go to a school district with low ratings and your kid will be the top student with scholarships coming out of the ear. (Assuming your kid is smart)
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My kids name is uh John wingawaga of the were Talka Irvine tribe.
 
jmoney74 said:
eyephone said:
jmoney74 said:
Best way to pay for college still seems to be buying real estate for rental.
Click to expand...

If your Asian change your last name so you can have a better chance for scholarships and college acceptance. (Just kidding)

or go to a school district with low ratings and your kid will be the top student with scholarships coming out of the ear. (Assuming your kid is smart)
Click to expand...

My kids name is uh John wingawaga of the were Talka Irvine tribe.
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If his name was John Wa change it to John Wall  lol
 
How the government should fix this or how the bank should be operating, those are realistically out of our hands for most of us.
Why don't you start with something you can do?
As simple as something like opening up a saving account and put $500 monthly that would add up to almost 100K in 15 years.
That should almost cover one kid's college tuition for a private school.
Buying a property in Irvine and sell it in 2-3 years should cover two kids tuitions.
 
jmoney74 said:
eyephone said:
jmoney74 said:
Best way to pay for college still seems to be buying real estate for rental.
Click to expand...

If your Asian change your last name so you can have a better chance for scholarships and college acceptance. (Just kidding)

or go to a school district with low ratings and your kid will be the top student with scholarships coming out of the ear. (Assuming your kid is smart)
Click to expand...

My kids name is uh John wingawaga of the were Talka Irvine tribe.
Click to expand...

I wasn't joking. An Indian-American applicant got accepted into med school prentending he was African-American.
http://nypost.com/2015/04/12/mindy-kalings-brother-explains-why-he-pretended-to-be-black/

 
Mety said:
How the government should fix this or how the bank should be operating, those are realistically out of our hands for most of us.
Why don't you start with something you can do?
As simple as something like opening up a saving account and put $500 monthly that would add up to almost 100K in 15 years.
That should almost cover one kid's college tuition for a private school.
Buying a property in Irvine and sell it in 2-3 years should cover two kids tuitions.
Click to expand...

Well you're Talkin majority of population. Hard for most peeps to save money let alone college tuition.
 
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