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Flood Of Students Demanding Loan Forgiveness Forces Administration Scramble

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http://www.zerohedge.com/news/2014-04-22/flood-students-demanding-loan-forgiveness-forces-administration-backtrack

"Loan forgiveness creates incentives for students to borrow too much to attend college, potentially contributing to rising college prices for everyone," is a study's warning over government plans that allow students to rack up big debts and then forgive the unpaid balance after a set period. As WSJ reports, enrollment in student debt forgiveness plans have surged nearly 40% in just six months, to include at least 1.3 million Americans owing around $72 billion. The administration is looking to cap debt eligible for forgiveness, as President Obama's revamped Pay As You Earn scheme has seen applications soar and is estimated to cost taxpayers $14bn a year. The 'popularity' of the student loan bailout plan surged after Obama promoted it in 2012, and now the administration must back-track as costs have massively outpaced government predictions.

20140422_debt.png

Still I'm sure the UK won't suffer from the same problem as we've got it covered by ever increasing house prices....

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Student debt, liar auto loans and the shale bubble. Take that away and the US is still where it was in 2008: an almighty depression.

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Parallels with UK housing. Outbid others by offering an amount unlikely to be repaid without improbable wage transformation or care home fee free inheritance, then go looking for forebearance at the first sign of trouble.

Got to be deflationary once a bit of honesty prevails regarding how much of the debt is collectable.

Edited by The Knimbies who say no

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