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Massive debt. Damaged credit. Nothing to save. How student loans make home ownership a pipe dream
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2018 Apr 1, 9:41pm 2,643 views 13 comments
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1
MrMagic
2018 Apr 1, 9:42pm
MrMagic
2018 Apr 1, 9:42pm
Mike, a government worker in Yukon, Oklahoma, said banks offering loans would line up at his law school at the University of Toledo. (He asked to use his first name only because of his job with the government). He graduated in 2008, with more than $200,000 in debt, into the Great Recession.
He couldn't find a job and soon defaulted on his student loans, like 40 percent of borrowers are expected to do by 2023, according to the Brookings Institution.
He felt helpless.
"I just ignored it, there was no way — they were wanting $1,200 a month," Mike said.
His credit score sank into the low 500s, which is considered very poor by credit data company Experian.
"If I went into any bank in Oklahoma, they would just laugh at me," Mike said.
He couldn't find a job and soon defaulted on his student loans, like 40 percent of borrowers are expected to do by 2023, according to the Brookings Institution.
He felt helpless.
"I just ignored it, there was no way — they were wanting $1,200 a month," Mike said.
His credit score sank into the low 500s, which is considered very poor by credit data company Experian.
"If I went into any bank in Oklahoma, they would just laugh at me," Mike said.
3
joshuatrio
2018 Apr 2, 5:32am
joshuatrio
2018 Apr 2, 5:32am
I'm sorry, but these people are retards. Getting themselves into so much debt to begin with is just plain stupid.
4
clambo
2018 Apr 2, 5:44am
It's unfortunate because American business while not discouraging people to study, discouraged them from working by offshoring and hiring foreigners.
Of course, people who studied "feminism" "film history" "English history" etc. may also experience difficulty getting into the job market.
My friend who was replaced at Compaq by a couple of guys from India kept bugging his son to drop out of UC and become a fireman. They are not hiring H1-B firemen and police YET.
Of course, people who studied "feminism" "film history" "English history" etc. may also experience difficulty getting into the job market.
My friend who was replaced at Compaq by a couple of guys from India kept bugging his son to drop out of UC and become a fireman. They are not hiring H1-B firemen and police YET.
5
HeadSet
2018 Apr 2, 6:45am
HeadSet
2018 Apr 2, 6:45am
Getting themselves into so much debt to begin with is just plain stupid.
Actually, they may just be spoiled. Since money has "just showed up" for their needs so far in life, they would like to think that money would just show up to pay these loans. Any serious look at cost/benefit would discourage anyone except those who brush facts aside because they really desire the 4 year extension of adolescence that college life provides.
Actually, they may just be spoiled. Since money has "just showed up" for their needs so far in life, they would like to think that money would just show up to pay these loans. Any serious look at cost/benefit would discourage anyone except those who brush facts aside because they really desire the 4 year extension of adolescence that college life provides.
6
HeadSet
2018 Apr 2, 6:46am
HeadSet
2018 Apr 2, 6:46am
My friend who was replaced at Compaq by a couple of guys from India
It took two guys to replace him, and the company still saved money?
It took two guys to replace him, and the company still saved money?
7
Y
2018 Apr 2, 6:58am
Y
2018 Apr 2, 6:58am
In the olden days most if not all of education was free from the state.
But the advent of teachers unions and eternal Tenures opened up the Libbie cash cow spicket along with unfunded government pensions draining the educational pot. Libbie policies are at the heart of the dumbing down of America.
But the advent of teachers unions and eternal Tenures opened up the Libbie cash cow spicket along with unfunded government pensions draining the educational pot. Libbie policies are at the heart of the dumbing down of America.
8
Y
2018 Apr 2, 7:02am
Y
2018 Apr 2, 7:02am
End unfunded government pensions to re-fund the state educational pot and free generation who the fuck from the chains of Libby policies
10
MrMagic
2018 Apr 2, 7:38am
MrMagic
2018 Apr 2, 7:38am
joshuatrio says
HeadSet says
Exactly, they're the "Everyone gets a Trophy" generation, and are use to having everything given to them by mommy and daddy, they never have to figure out any life skills on their own.
I'm sorry, but these people are retards. Getting themselves into so much debt to begin with is just plain stupid.
HeadSet says
Actually, they may just be spoiled.
Exactly, they're the "Everyone gets a Trophy" generation, and are use to having everything given to them by mommy and daddy, they never have to figure out any life skills on their own.
11
MrMagic
2018 Apr 2, 7:44am
MrMagic
2018 Apr 2, 7:44am
errc says
Spoken like a true professional with experience.
There’s a purely Free Market Capitalist American solution here, transfer the debts from university over to unsecured personal loans and credit cards, and file Chapter 7 bankruptcy
Winning
Spoken like a true professional with experience.
12
Y
2018 Apr 2, 7:59am
Y
2018 Apr 2, 7:59am
What the hell is so special about student loans that bankrupsty laws don't apply?
errc says
errc says
Hell yea. A true professional Free Market Capitalist. $$$$$$$
13
MrMagic
2018 Apr 2, 8:12am
MrMagic
2018 Apr 2, 8:12am
BlueSardine says
The government made the mistake to guarantee, approve and backstop them.
What the hell is so special about student loans that bankrupsty laws don't apply?
The government made the mistake to guarantee, approve and backstop them.
Some 45 million people in the United States carry student debt. The average borrower owes more than $30,000, according to Student Loan Hero, a website for managing education debt. Almost a fifth owe more than $100,000, according to the National Association of Realtors.
People's monthly student loan payments can eat up a large slice of their income, threaten to push down their credit scores and make saving nearly impossible — all huge impediments, of course, to landing in a house.
Almost one-fifth of people with student debt who apply for a mortgage — like McKinley, are denied because of their "debt-to-income ratio," what a person owes versus how much they make, according to the National Association of Realtors.
And he's not alone, 85 percent of student loan borrowers say difficulty in saving has delayed their ability to buy a house, according to the National Association of Realtors.
"It's challenging with student loans to be able to put together $40,000," said Grant Simmons, vice president of search marketing for Homes.com.
(The median home price in America is $241,700).
https://www.cnbc.com/2018/03/29/these-are-the-ways-student-loans-stop-people-from-buying-a-house.html