Post: #76

^according to "The Big Short", a mere default rate of 7% would have caused the BBB- rated bond tranche to approach a value of zero. That was one of the markers for the collapse.

I can't remember where I read it but it is said that a 40% default rate would be the equivalent of a student loan bubble burst. The problem is that the governments everywhere are propping up the scam by introducing the Income Based Repayment (IBR) schemes to stop default rates. Australia has this and recently Canada has introduced it as well - everyone is in this scam together. Making less than 50k/year? No worries, you don't have to pay for your loans! That's basically the gist of it. Many people will go through their entire lives never paying their loans and it's all by design to cook the books.

Post: #77

^As I stated previously before I got sperged on, governments are using student loans as a way to deny future entitlement pay outs.

Let's say you go on IBR, but never meet the maximum amounts. If you have any outstanding loans left by the time you're supposed to retire, the government will use your social security pay outs as "payment" towards your loan.

http://www1.cbn.com/cbnnews/finance/2017...dent-loans

Post: #78

(04-12-2017 11:55 PM)The Beast1 Wrote:  ^As I stated previously before I got sperged on, governments are using student loans as a way to deny future entitlement pay outs.

Let's say you go on IBR, but never meet the maximum amounts. If you have any outstanding loans left by the time you're supposed to retire, the government will use your social security pay outs as "payment" towards your loan.

http://www1.cbn.com/cbnnews/finance/2017...dent-loans

I always assumed they simply would not get any pay out when current millennials retire but I guess this way the government can turn the blame around on them for being so irresponsibly stupid. Pensions are pyramid schemes destined to fail anyway and I doubt there will be much left over pay out once the government uses it to service the existing debt.

The whole thing needs to be burned into the ground. Like Peter Schiff, I think young people saddled in 6 figure debt ought to default on their student loan debt by going overseas. I think most won't though. Most people still believe degrees are great investments despite the debt and claim victory because of IBR.

Post: #79

Completely agree and while we're at it we can get rid of social security and pension systems altogether. There's no possible way they'll survive unless families continue to have at a minimum of two children.

Actually, come to think of it that would be a great idea. Only people who have 2+ children are allowed to collect social security and retirement benefits. I kid, but sometimes serious considerations need to be made to boost birth rates.

Post: #80

(04-12-2017 11:55 PM)The Beast1 Wrote:  ^As I stated previously before I got sperged on, governments are using student loans as a way to deny future entitlement pay outs.

Let's say you go on IBR, but never meet the maximum amounts. If you have any outstanding loans left by the time you're supposed to retire, the government will use your social security pay outs as "payment" towards your loan.

http://www1.cbn.com/cbnnews/finance/2017...dent-loans

Those Seniors are getting their SSI garnished because IBR didn't exist then and no lender is inclined to put an 80 year old fart on a 20 year repayment schedule.

IBR last for either 20(for loans before 07/1/14) or 25 years. From what I've read if you don't pay it all off in timeframe the remainder of the loan balance is forgiven.

Retirement age is typically 65.

Most people finish the Bachelor's by 21-22. Even if you go for a Master's (approximately 2-3 years) and a PHD(3 to 4 more years) you'll be in your late 20's if you start IBR immediately and the unpaid balance should be totally forgiven around age 55, ten years before you retire(assuming your income remains modest for 25 years).

Social Security garnishment won't be an issue for Millennials. Unless the terms change

Post: #81

(04-13-2017 12:56 AM)The Beast1 Wrote:  Completely agree and while we're at it we can get rid of social security and pension systems altogether. There's no possible way they'll survive unless families continue to have at a minimum of two children.

Actually, come to think of it that would be a great idea. Only people who have 2+ children are allowed to collect social security and retirement benefits. I kid, but sometimes serious considerations need to be made to boost birth rates of people who actually contribute to and thereby make the system sustainable

Fixed it for you mate.

Post: #82

Wrote my last check for my Student Loans last month. The money saved has not been stacked yet, but yet you can feel the weight off of your shoulders.