Well THAT didn’t take long. The confetti thrown on college campuses has barely been swept up after Barack Obama’s reelection, and reality has smacked more of his children in the face. This is happened faster than any of these fools could have imagined. You will recall that Obama’s union children at Hostess found out what real life is about last week. This week, his college student children got their dose of cold truth.
The stroke across the student loan crowd’s face is the news that in the 3rd quarter, the number of student loans in default has skyrocketed.
Student loans that are now delinquent by at least 90+ days and 30+ days have risen dramatically.
The amount of outstanding student loan debt has reached $956 billion, having climbed $42 billion in just the last quarter alone. Obviously, the effects of a 53% underemployed/unemployed rate among those graduating from college last May is taking hold of these young fools. Fully eleven percent of all student loans are delinquent for more than 90 days.
Probably very few of Obama’s college children, who have outstanding school loans, understand that they can NEVER walk away from their debt because it is NOT dischargeable in a bankruptcy; but they will soon find out. How they expect to live a life of their own in a country that offers them no jobs but demands repayment for their useless degree is a mystery.
Worse still is that this report is “likely to understate actual delinquency rates because almost half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle” according to Zerohedge.com. The explanation goes on to say: “This implies that among loans in repayment cycle delinquency rate are roughly TWICE as high.”
The rate of delinquent student loans jumped by 2% in just the three months following last May, and the total amount of outstanding student loans is now pressing $ 1 trillion. Since trying to tell these foolish children this was coming made no impression, maybe the demand letters the hounds at the IRS will be sending them will make an impression.
They can hide in Mom’s basement for now, but sooner or later they will have to come up for a beer and smokes. Until then, children, keep plenty of gas in your cars so you can try to outrun the revenuers. Maybe you’ll get work in your own reality show; ‘Two broke Students” sounds about right. Oh, and look up the meaning of the word “Schadenfreude” – it might be an eye-opener.
Photo credit: SS&SS (Creative Commons)
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