Community | August 10, 2011 | 9 comments

Moody's Analytics Warns Student Loans May Be The Next Financial Bubble To Burst

source: http://www.huffingtonpost.com/2011/08/09/moodys-student-loans-bubble-burst_n_922646.htmlWASH...

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-- Record borrowing by college students who are graduating without jobs could lead to major problems in the nation's economy, according to a recent report by Moody's Analytics.

"The long-run outlook for student lending and borrowers remains worrisome," concluded the report, which came out in July.

"Unlike other segments of the consumer credit economy, student loans have not demonstrated much improvement in performance despite some improvement in the broader economy. ... [T]here is increasing concern that many students may be getting their loans for the wrong reasons, or that borrowers -- and lenders -- have unrealistic expectations of borrowers' future earnings."(this is a ticking time bomb that may spark the civil unrest America's missing.)
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9 comments // Moody's Analytics Warns Student Loans May Be The Next Financial Bubble To Burst

  • Earl_Dixon
  • RaceBannon
    • 0
      RaceBannon  

    • oh its awful, my advice if you're a college age student, screw studying systems management and run away to another country. The Sorbonne in Paris is a nice place

    • 10 months ago
  • lazloman
    • 0
      lazloman  

    • This could be an entire generation of highly educated people relegated to Walmart caliber jobs, if anything at all. Just like a lot of 3rd world countries. Ever listen to anyone who was rioting in Tahrir Square? Many of these folks have advanced degrees in engineering and science, but there are no jobs for them. One guy was selling fruit on the streets. This kind of stuff is OK with the tea baggers. It's just the way things are supposed to work. Well, the riots will tell them otherwise.

    • 10 months ago
  • COMMONSENSEFORCOMMONGOOD_COM
  • figgdimension
  • Vic_Romano
  • TrishR
    • +3
      TrishR  

    • Saw a scary PBS documentary about the potential for a student loan bubble . Corporations buy poor but accredited colleges, then create these "9 months "education"/training" to get a job, charging students up to $30 grand for a 9 month vo-tec course that may not even give the student enough real skills to qualify for a job ("med assist" students that never see the inside of an E.R. or a lab, for instance). When the student can't get work, the school does nothing, and the now former student is stuck with the student loan. A Lot of the companies doing this also drove the real estate bubble by encouraging "liar loans" and other nefarious uses of government-guaranteed mortgage programs. After the housing bubble burst, they discovered this new pot of government-hled money to go after.

    • 10 months ago
  • figgdimension
  • imisiu
    • +1
      imisiu  
    • TrishR:

      I found out that the wives of wall street moguls own my student loan debt, so when I pay it back, I'm just helping them get richer. They're sitting pretty on my big ol' pile of misfortune, laughing at the likes of me.

    • 10 months ago
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