Crashing the stock market may be the plan here. Follow me on this …
Crashing the market and removing 20 to 30 percent of value.
Then at the low point invest heavily into the DOW.
Now support the market and get it back to previous levels.
Fucking rich fucks just made 30% in 1 to 2 years on that investment.
Hey now you’re forgetting that they’re also going short on everything and making money on the fucking way down too!
I’m so glad that I got a surprise letter in January of 2024 stating that the Biden SAVE program had forgiven my entire $320,000 worth of student loans. I had originally borrowed $150k.
Wait, was that all fucking interest???
Also for 150k you better be a fucking doctor, mate.
This isn’t uncommon, there are deferral programs for student loans but these typically come with compounding interest (basically, your payments are covered each month by an additional loan which gets added to the principle).
With no DOE employees to process defaults?
Nobody should be paying a red cent.
If your choice is draining your entire bank account to the point you can’t afford to live or suffering a credit score penalty, then the credit score should be sacrificed.
“but they can…”
Stop. Nothing they can do is worse than starving. Don’t pay them. Use your money for your own needs.
I wish more people understood no one can stop you if there is no one to stop you.
Try getting an apartment or renewing a lease with a truly shit credit score.
Oops, you don’t qualify anymore, anywhere, your options are now homelessness, much more expensive hopping between motels every 3 weeks, or live in your car, hope you’re still making those payments.
Fairly difficult to cost-effectively cook and store food when you’re in any of those situations.
I used to have apparently atrocious credit due to delaying payments on my student loans for years. But with proof of income it didn’t stop me from getting apartments in NYC. In the last place I asked the broker what my credit score was and while he wasn’t at liberty to tell me he did say “Not good. But it’s all student debt related which we don’t consider relevant”. Still seems weird to me today but I guess landlords often don’t consider student debt to be a reflection of a tenant’s ability to pay rent. Probably because most people prioritize paying for shelter over paying for the classes in their past.
well that isnt true. my last apartment was 0 credit checks. just pay and live.
Oh hey it’s the same corporate troll line again cool
Oh, excuse me for being crippled from a mugging and then having all my bank and id cards and phone stolen and then spending a year homeless and another year bouncing from motel to motel while trying to replace my id and unfuck my credit score with 3 bureaus without a permanent address and with a broken arm and wrist and leg, whilst also being unable to afford any medical treatment.
Yep, total corporate shill over here, totally not barely alive, only thanks to barely being able to keep my details current with social security so I could at least get disability payments.
Go fuck yourself buddy, I hope what happened to me happens to you.
Dude that sucks, but student loans didn’t cause that.
If this happens to too many people the economy will suffer. Eventually they’ll have to start ignoring credit scores. We’re rapidly reaching a point where the system can no longer compensate for the incompetencies and inequality and stuff will start breaking mechanically in ways that can’t be easily fixed or routed around
Everything you are describing has been happening and increasing in severity for years.
Usually what happens in an economic contraction is that credit lending standards raise, not lessen.
The free market doesn’t give a shit about bad investments, which is what you are if your credit record sucks.
… And the government is basically now run by a bunch of AnCaps and Fascists.
We’re looking more likely to become an indentured servitude, debt slave, company town style society, you know, just like the 1890s, that Trump is trying to take us back to, back before the income tax and much of the government actually was funded via tariffs.
I’d love to be as optimistic as you are, but uh hey, when was the last time you fed a homeless person, personally?
America hates the homeless, shanty towns aren’t even possible anymore, those are all now ‘homeless encampments’ that are literally bulldozed away, and all the homeless in them are ‘referred’ to shelters that are already full.
The easiest propoganda line to have all the media blare at everyone is just that all the people driven into homelessness by losing a job, being unable to pay a debt, serious injury or illness… well they’re all violent drug addicts, and really they should all just die, or not be near me, ew.
Trump already called for creating concentration camps of massive tent cities built on the outskirts of cities for the homeless.
https://www.newsweek.com/trump-wants-make-homelessness-illegal-1795202
This is the plan, unless an actual revolution of some kind occurs.
Just don’t pay. Debt-strikes are far more damaging than a work-stoppage.
It’s most likely that people won’t have a choice. Many people, anyway, from what I understand of USian wages and cost of living.
I’m not talking about rent, I’m talking about the massive credit card and loan debt that has propped up millions of folks trying to live a lifestyle they can’t really afford. In the US, it’s incredibly common for folks to just take on debt for stupid shit, like a jacked up truck they only ever use to drive to the grocery store.
this is the 6th time in the past 2 days i see this argument. blaming the people for using the system that has been forced on us over the past 20 years to bolster GDP.
i smell an attempted narrative change.
Nobody is forcing you to get a credit card. It’s the stupid american culture that is making you do that. The amount of people who solely use all their income on nothing but food and rent are nowhere near as many as the people who use it to live beyond their means and pay for their overconsumption.
this is a bit bigger than joe smoe overspending on his credit cards.
Oh yes I agree its the systematic failure of american people to fuck up their own country over generations and be happy about it. In the current era of unparalleled freedom of information, there is no excuse other than being stupid and believing you are not.
I think its american exceptionalism that is to blame since americans geniuinely belive they do not live in a 3rd world oligarchic shithole and that they know what freedom and democracy means. Good news is the current crisis is literally the thing people need to understand what freedom is and why it is important since you have lost it for the first time.
it’s not just america. the entire west had to switch from the keynesian system to the friedman system after america and the uk’s pinochet experiment. unfortunately friedmans system doesn’t work if everyone does it; and the patch is currently to take advantage of the poor as new loan takers are born every day and it’s currently the only way to inject more cash into the economy.
Groceries.
The debt is for groceries.
Super wealthy people portray it like you just did, but what you said isn’t accurate.
People are putting basic necessities on credit cards now.
Could you explain to non-Americans what is the appeal of student loans if they can do this? Why shouldn’t people go to cheaper schools to get their degrees instead? I mean no disrespect, if you are rich go to Yale or whatever, by all means.
There are no cheaper schools. There are expensive ones and more expensive ones. There is literally no option for the non-rich except to go into debt or learn to be a plumber.
Lots of trade schools are charging 10-20k/year and expecting 2 years of you…trades are great but we’re using student loans for them too depending on where you are*
*large cities tend to have better cheaper options like community college and there at least was some small federal schools that didn’t require loans. But not all areas have equal coverage here and you often get price gouged if you aren’t from that very specific city/town the community college is in. Tl;dr hopefully you live in an area with good resources which is not even remotely guaranteed.
learning a trade should be more encouraged, you can make a shit ton of money (relatively) without the debt
This isn’t even true in a lot of places now. If you have a college nearby, expect your local trade school to have tuition similar to that college.
True, but that isn’t an option for everyone and we still need scientists and doctors and such.
oh i know but college shouldn’t be the default. i work in elementary and they have college posters up in the halls.
College stuff up in elementary schools is pretty crazy.
There are no such thing as cheaper schools. They got rid of that because they were angry college students protested the Vietnam War. So now getting an education means doing business with the worst loan shark you’ve ever heard of, legally protected from bankruptcy. The thing you have to understand about America is that everything is a scam. Like healthcare or housing or a child care and a bunch of other things I’m not even thinking about
there are no cheap schools in the US.
See my response to another comment about wgu
I went to a really cheap school. My master’s was 40k.
40k? In USD or in Warhammer? Cause that’s a shite ton of money for college.
What did you study btw?
Also, I am great full to live in a shit hole country right now given that bill
40kUSD is nothing compared to some STEM degrees - especially at the masters level. PhDs can often be funded and not cost the student though (only in lost time…and mental health…)
Social work. And it’s laughable considering that social workers and mental health professionals generally don’t make a lot of money. I have no regrets getting it, just wish it was cheaper.
My bachelor was around 12k and if I did it faster it could have been cheaper. Wgu does it based on term not credit hour. The more courses you pass in a term the cheaper it is overall.
There was literally no way for my master’s to cost less, so I am not sure what your point is. It’s a minimum 2-year program. It’s how it’s designed. Not all degrees are like that, but in my case I paid the least amount possible already.
Letting you know there are cheaper schools depending on your degree
Literally picked the cheapest school I could find for my degree. Again, not sure what I could have done differently here.
Don’t let people turn systemic problems into individual failings.
Children are told that they MUST go to college to get a stable and high paying job. This is so prevalent that college degrees are just seen as “the next step after high school” and nobody questions it. These colleges have figured out they can charge almost anything because they are seen as the gate keepers to high paying and stable jobs. So banking on future earnings, bearly emancipated teenagers, with the absolute minimum of a financial education, make life decisions that will put them in debt for the next 20-30 years.
The problem with the whole system is there doesn’t appear to be enough high paying and stable jobs.
As far as going to a cheaper college, I think you identified the issue in your very own comment. Schools have different prestige levels. Yale, for example, is a high prestige school and not only are you paying for an education, you are also paying to connect to rich people. These connections can be worth a lot of money if they are used correctly. So going to a cheaper college also means less valuable connections.
Even beyond connections, just the sticker on a resumé that says “<prestige school name>” means you’re less likely to get shunted into the shitter with 95% of other applicants, if you don’t already have an “in” that cuts past the resumé stage.
Is this an intuition, or is it a known fact? Why would people do this? Do universities teach people to discriminate this way? Where do employers get these ideas? Is it something that permeates the whole society, or is it focused to applicant selection? Sorry for the many questions, I appreciate your response.
As a Millennial (and now an adult), I will preface that I’m out of touch with the youths, so I don’t know their perspective on colleges now. But it is common societal idea in the US. No company will openly put out notice that they are discriminating but the prestige US schools are more rigorous in their application screening and get more money, and so are expected to have more rigorous curricula/standards and better teaching. It has shifted so that non-Ivy League schools were becoming recognized in their fields for various subjects. But that just adds them to the “Prestige” category for those in the know.
When people look at a resume, it’s sorted into “Prestige” and every other university. And prestige will take your further.
Hilariously, as America progresses further into the dark ages, these “prestige” schools are increasingly becoming known for being degree mills who will sell a degree to any idiot with fat enough pockets to ask for one. Take the Trumps’ history at Wharton for instance.
It probably always was. It’s just that before rich people used to think being intelligent was a thing worth pursuing. The idea that you needed to be well-read and experienced to lead people.
That’s one of only good things about Florida. The colleges on average are significantly cheaper than anywhere else, and Florida is still ranked number 1 on US News for college education when looking at every single college combined.
So basically get a good affordable education and then move the fuck out of Florida.
Although the governor is doing everything in his power to make sure that is not the case.
An rendition of Trump’s Greater Depression:
My only hope is that America slingshots back to Roosevelt era policies. Wild that this exact shit happened and what saved us? Oh social programs and high tax rates on the wealthy.
SLABs will tank, someone’s collateral gonna get busted
SLAB?
Student Loan Asset-Backed Securities
Basically, people can buy the rights to your loan payments. Maybe they get packaged together with many others’ debts.
SLABSs are quite profitable, obviously. During COVID years there was a freeze on debt payments and holders of SLABS started to feel the squeeze. SLABSs are such a guaranteed return that people/banks/hedge funds can use them as collateral for loans and stuff. So during COVID, SLABSs became a liability. Or so it’s been speculated
If people start defaulting on their debts, SLABSs could be centrally involved in a financial collapse, the first domino to start chain reaction of margin calls
