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Posts Tagged ‘student loans’

America’s Trillion Dollar Student Loan Train Wreck (with Video)

Posted by Larry Doyle on October 27th, 2012 6:44 AM |

Can you imagine the media coverage of a train wreck in which the passengers largely consisted of hundreds of thousands of American college, university, and graduate students? Every news outlet in this nation would set up shop by the roadside to cover that massive human interest story.

Well, that train wreck is playing out in slo-motion each and every day in our country. Is that right? Yep, and it has garnered little of the requisite attention it deserves. Let’s navigate and take a personal look inside the trillion dollar student loan disaster. Interesting that it takes coverage from Euronews to shine a light on this pileup. (more…)

Student Loan Bubble: The Hidden Reality

Posted by Larry Doyle on September 5th, 2012 10:00 AM |

America is increasingly aware that the student loan bubble is a major problem for millions of students, families, and our nation as a whole. While far too many politicians from both sides of the aisle talk in platitudes about the need for education, few if any of these politicians are willing to pull back the cover and expose the ugly reality embedded in current data on the student loan bubble.

Yes, America knows that total student debt now exceeds all other forms of consumer debt. We also know that total student debt is now approaching $1 trillion dollars. I personally believe that the cost of education at public and private colleges and universities has to adjust downward but that reality does not appear imminent.

What don’t we know about student debt and how will it hurt us? Let’s navigate.  (more…)

Student Loan Crisis: Why So Many Colleges May Fail?

Posted by Larry Doyle on May 19th, 2012 7:21 AM |

“We know the model is not sustainable,” said Lawrence T. Lesick, vice president for enrollment management at Ohio Northern University. “Schools are going to have to show the value proposition. Those that don’t aren’t going to be around.”

(The New York Times; May 14, 2012)

Very few topics have received as much attention here at Sense on Cents as the student loan crisis.

In my opinion, the size, scope, and impact of this problem is an enormous anchor weighing down  our next generation and our nation’s economy.

Make no mistake, this anchor is not only impacting thousands of students and families but is also having an equally burdensome impact on colleges and universities nationwide.

I choose my words carefully here. The other day I entitled my commentary, Student Debt Bubble: Impending Doom for Colleges.

Doom is a strong word. Why did I choose it? Let’s navigate. (more…)

Student Debt Bubble: Impending Doom for Colleges

Posted by Larry Doyle on May 14th, 2012 11:27 AM |

“We know the model is not sustainable,” said Lawrence T. Lesick, vice president for enrollment management at Ohio Northern University. “Schools are going to have to show the value proposition. Those that don’t aren’t going to be around.”

(The New York Times; May 14, 2012)

The student loan debt bubble is beginning to get a LOT of attention. As well it should.

That attention is deserved when a level of debt surpasses $1 TRILLION. The New York Times drew further attention to this situation this weekend in an extensive and very personal commentary, A Generation Hobbled by the Soaring Cost of College.

I have tried to draw focus to the MASSIVE size of this problem and its accompanying implications over the course of the last year in writing the following:  (more…)

Student Loan Debt Bomb’s Collateral Damage

Posted by Larry Doyle on February 28th, 2012 6:46 AM |

The cost of college and the accompanying burden of student loan payments are having an enormous impact across many segments of our economic landscape.

From basic consumer spending habits to decisions on living arrangements and so much more, recent college grads are facing a decidedly different economic future than their counterparts a decade or two ago.

I ask once again, Are Student Loans an Impending Bubble? Is Higher Education a Scam?

Many people in the field do forecast an impending student loan debt bomb. Why should we be concerned? For the very simple reason that the bomb is ENORMOUS!! (more…)

Very Disturbing UPDATE: Student Loan Bubble and Seeking Arrangements

Posted by Larry Doyle on August 4th, 2011 7:11 AM |

I have a soft spot for those within our society whom I believe are preyed upon and ultimately victimized by the perils and pitfalls of modern day finance.

I fully appreciate that people need to be held responsible for their personal behaviors and decisions, but we need to acknowledge that the tangled financial web that our nation has woven has placed many members of our society in untenable positions.

The story I address today is perhaps one of the saddest I have encountered since launching Sense on Cents in early 2009.  (more…)

Are Student Loans an Impending Bubble? Is Higher Education a Scam?: Part II

Posted by Larry Doyle on June 22nd, 2011 7:52 AM |

Few commentaries here at Sense on Cents have received as much attention as that which I wrote a few months ago highlighting issues within the student loan market and questioning the value and integrity of higher education. That commentary, Are Student Loans an Impending Bubble? Is Higher Education a Scam? hit a nerve on many fronts.

Today, our focus on this segment takes a new twist and we get a “behind the scenes” look at the intrigue and innuendo encompassing a hedge fund which would seem to believe that the student loan market may be a bubble and higher education for profit may just be a scam.

Potential of insider trading, investigative hedge fund research, prospects for increased regulation of the for profit education industry. This story would seem to have it all.  (more…)

Are Student Loans an Impending Bubble? Is Higher Education a Scam?

Posted by Larry Doyle on April 26th, 2011 9:00 AM |

What did we experience in the sub-prime housing debacle?

1. Shoddy underwriting standards for borrowers.
2. A massively flawed system promoted and perpetuated by the Wall Street securitization business.
3. Borrowers overleveraged leading to skyrocketing rates of foreclosures and defaults.
4. A mentality that housing finance could promote a real social benefit and a profitable enterprise.
5. A government backstop and ultimate bailout for investors.
6. An ultimate fiasco for our society as a whole.

Have we learned our lessons from the sub-prime housing nightmare? Could we possibly be going down the same path in another segment of our economy? Yesterday a reader inquired if I had addressed the potential impending fiasco in student loans. This morning I discussed the cost of higher education with my better half. Will our economy be able to generate both the jobs and income levels for students to manage their increasing levels of indebtedness? (more…)






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