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Black College Student Loan Default Rates are the Worst.


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2015 Dec 22, 6:03pm   1,396 views  0 comments

by Blurtman   ➕follow (2)   💰tip   ignore  

At 108 US Colleges, More Than Half Of Students Haven't Paid Even $1 On Their Student Loans

That the student loan bubble is one of the many "subprime" crises (because as of this moment there are just too many asset bubbles to count thanks to 7 years of global ZIRP, NIRP and QE) has been documented here ever since 2012. We also explained that the main reason for soaring college costs is the cheap and easily accessible government-funded student debt, which at last check was over $1.2 trillion and rising exponentially.

Today, the WSJ had an article on just this, titled "U.S. Helps Shaky Colleges Cope With Bad Student Loans" in which it explained in fine detail what our readers knew already, namely that it is the government's direct intervention with trillions in "aid" that is making the debt default problem far more acute than it would have otherwise been, and leads to keeping millions more "students" in college where they end up learning no marketable skills in a job market that rewards mostly waiters and bartenders, yet loads them up with untenable debt.

Like we said: nothing new. There was however one stunning fact buried deep in the article.

While we knew that overall student loan default rates for all US colleges were in the 8-10% range based on the Fed's quarterly consumer credit data, what was stunning is that the "non-repayment" rate, or the percentage of students who haven't made a single dollar toward their loans within three years of leaving college is a crisis-worthy 21.3%. This means that of the millions in college graduates from the 2010 and 2011 cohort (and since then the job market for recent graduates has gotten worse), more than a fifth don't have either the means or the intention to repay even one of the tens of thousands of dollars they owe...

http://www.zerohedge.com/news/2015-12-22/108-us-colleges-more-half-students-hevent-paid-even-1-their-student-loans

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