How Wall Street Profits From Student Loans
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- Опубліковано 8 тра 2024
- Student loans are a big business. The U.S. has amassed over $1.7 trillion in outstanding student debt. But while more than 43 million Americans are currently holding student debt, many are unaware of what exactly happens with their loans. Billions of dollars worth of student loans are packaged and sold as assets known as SLABS to some of the biggest investors in America. So what exactly are SLABS and how does it help Wall Street profit from student loans?
Chapters:
00:00 - Introduction
01:21 - Securitization and SLABS
06:17 - Bubble?
09:43 - Now and future
Produced & Edited by: Juhohn Lee
Animation: Christina Locopo, Alex Wood
Supervising Producer: Lindsey Jacobson
Additional Footage: Getty Images
Additional Sources: National Center for Education Statistics, The Bank for Canadian Entrepreneurs, Guggenheim Investments, Comptroller of the Currency Administrator of National Banks, Federal Reserve History, California Debt and Investment Advisory Commission, Seeking Alpha
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How Wall Street Profits From Student Loans
College in the US has become a business, not a service.
What's not a business in the US...
Isn't a service a business?
@@AnonymousanonymousAno
It's not a business it's a scam. Businesses can file for bankruptcy if they get sue or fall into heavy debts. You can't get rid of student loans by filing for bankruptcy...
There is no lunch for free.
We don't trust kids with alcohol or tobacco. But at 18 they can take on debilitating student loan debt.
And lose their lives or get injured in a war.
We trust them with voting.
You cant smoke at 18?
@JinNani224 i dont know about other states but not in Kansas anymore. They changed that about a year ago.
@@steveparsons3498 It is now 21 nationwide thanks to Trump
College is the only product in the US that has stayed the same in the last 50 years but has gone up 1000% in price.
That is crazy to think about
It has become wayyy more enjoyable, with numerous amenities.
Value of a degree went down by my reckoning
FALSE! Used to be able to buy 10 taco bell crunchy tacos for like a buck. Now 10 tacos requires a mortgage but they still give me the same heartburn happiness. 🥴
What about land?
This should be retitled "How elite bankers were allowed by the government to rob an entire generation of their financial futures".
Correct
FUN FACT: Sen. Joe Biden was one of the few Democrats who sided with credit-card companies that were trying to make it harder for people to declare bankruptcy and in 2005 supported and championed the bill that stripped students of bank of bankruptcy protections and left millions in financial stress, and right after his family heavily invested in credit card institutions
You want to teach the bankers a lesson?
Just don’t take out student loans. Or pay it off before interest accrues. Then they have nothing to buy.
@@chowsquid you think 17 year olds are taught that in high school. For years, millennials were told that if you want success in life and didn't want to end up flipping burgers you had to get a college degree and that college was worth the investment. It was only after graduating college, that most people learned that this is all a complete lie.
many simply work and save for college and attend debt free, instead of going in debt and gambling for a better future that college may or may not provide
Remember kids.. Student loan is the only loan you can't file bankruptcy for.
You can you just need to meet certain requirements.
@@rc10gttbyou can’t
Oh yes you can. 1099-C. Look into it some more and understand what that form is.
Yes because the govt made a deal with investors/bankers to give out loans to people who have no job or credit history.
And you know who's idea that was........Joseph Robinette Biden.
The fact that federal loans are securitized at over 8 % is a kick in the balls to a whole generation
The fact federal loans hasnt been shutdown for being predatory is a kick in in the balls
Higher risk, higher interest rates. Basic finance
that is funny. considering gross wages went down by $1300 (on avg) from gwbush's 1st day to his last day, times the Millions of workers that whole generation could not find wmds in iraq either, nor bin laden that came after the generation figured out Bush's cocaine user history was still affecting his decision-making //
USA is a capitalist society and that means (pun) sum 1 has to pay to become a winner. education is free, to read at any Library, but slaves chose to vote for the lower wages with every GOP president. // reagan's free trade idea was all about lowering wages for the americans profits Go Up for shareholders when slaves accept the lower wages. distracted by 2 loser wars, and in fear of another pending 9/11 // that is a real Kick in the balls, to not breed any more stupid people
Usury ... A small group of counterfeiters are known for it.
Even the fed is drown in national debt so dont underestimate the fed ability to create debt
Now it all makes sense. We couldn’t have student loan forgiveness because monied interests didn’t want it.
😅 you just found that out?!?
You are indebted to investors.
People with more money than you will always own you.
Yes, when you borrow money from others, you will…. owe it back with interest. This shouldn’t be too shocking.
@@SenorJoeBidenwhat is shocking is the American economy would tank without skilled, educated labor and yet investors and businesses don't want to take on the cost of educating the workforce.... sure the degree helps the employee have higher earnings but we all know that the employee doesn't get all the value of their labor. They don't even get 10% of the value of their labor. The biggest benefit is to the employer who extracts wealth from the debt of the employee.
It’s sad because this isn’t happening to people who know more like the 08 crash. These are 18 year olds with little to no financial literacy. It’s very predatory and I hate how people see this as individual problems instead of a systemic one.
It's not very predatory. It's entirely predatory. Yes on what you said.
Yes,it is on the individual,pay it back twice.
Yo, there so many people that have told them to stay away from debt. Or maybe I’m wrong, parents just don’t teach them about the struggles that come with debt. People make it out of this student loans, but it takes a lot of discipline.
@@lbjoshbal Most parent don’t know because they probably didn’t go to college but were taught that that was the thing to do. Younger people are much more influenced and hence likely to attend higher education. From middle school up until senior year we are told get good grades and do xyz to get into a good school. So I’m not sure where you see people not encouraging college. Gen z and millennials are the most highly educated generations for a reason. We were told to go to college to get a high paying job. From 13-18 years old, 5 years worth of people telling us that this is the path we are supposed to take.
@@Daveyjonesvithis why respect blue collar job. Society devalue your fellow carpenter, plumber, electrician, ect. And praise doctor and white collar.
It and always is about money.
I am 46 and have 60k in student debt. It is my only debt no credit cards, auto loans, mortgage, medical bills, etc. The interest is more than my monthly payment. I have had this debt since 2012 and have been paying and paying and it keeps growing. From my perspective it seems pretty evil.
Interest is Evil
Can you go bankrupt to get out of it?
@@hi9580they lobbied the government to have it where, even if you file for bankruptcy, you can never clear your student loans. It’s disgusting and predatory.
@@hi9580no bro, that’s kind of the whole issue
@@hi9580no, student loans cannot be discharged in bankruptcy.
America is not a Country, America is a Corporation🙄
Deep and profound
Closer to a SPAC then a C corp i would say
@@allenwelden7099 LOL 😂👍🏼
@@michaelhutchings6602 SALUTE!✊🏼
Amen
I hate how literally everything is for sale in the States. Its disgusting
Why?
Capitalism is disgusting and immoral.
I don’t know who said this but, “a capitalist will sell you the rope you hang them with” and that is so true. 🤮
Its been that way since long before you wre born. Maybe focus on things you control. War is also disgusting.
And this is why the young generation would rather be a social media influencer, start a small business and using social media as their advertising because there is a big possibility of making wayy more money than someone with a degree. Wall Street has no saying in a influencer paycheck. Who wouldn't want to keep 90% of their paycheck? Graduating with debt it's not appealing 🤷♀️.
Good luck with trying to be an influencer. That’s like .0001% of the population lolsss
Good luck convincing the young to enroll college/university 😅
@@rudagata2134 they won’t be able to find employment
@@jumper9108 University or college degree doesn't guarrantee a job after graduation and a success in life. Rudagate2134 could be right, you need to try first, or just don't go to college...there are many ways to make money without student 's loan debt.
If you are skilled enough to make it. You also forgo social security and healthcare. A degree in a good subject is still the best path.
When money comes first, preying on the young vulnerable people is normal in the eyes of the true capitalists.
Not just young. I was 42 when I went back to school. Now I'm $84,000 in debt, because of poor planning on my part mostly. I stayed too long in, instead of deciding at the beginning a degree that could help me in the long run. I finally did, but spent too much money in the process. I went through the housing crisis too with my house going into foreclosure twice, and watching my home value plummet while my insurance in Florida increase. Now I've learned my student loans have been bought and packaged like my mortgage was. Yeesh.
If you ever want to know why people do not want student loan forgiveness, now you know.
Why even loan them in the first place?
@@jont2576 I'm saying!!!!!
@1237tub yes omg now it all makes sense...
Replace "people" with "business".
With easy forgiveness, nobody would want to loan to a student except for the gov because they can absorb the massive losses.
You want forgiveness?
Why don’t you lend me $10k.
I’ll pay it back in 5 years. Maybe. Actually I won’t. I’ll just do that forgiveness you love. And you have a -$10k hole in your wallet. 🎉🎉😂🎉🎉
It's no secret as to why politicians aren't big fans of cancelling student loan debt. The banks, creditors hedge fund managers tend to make a killing especially off the interest.
Yeah and almost tax payers don’t want to foot the bill.
Interesting there is no investigation in to WHY college costs are so high 😮 shouldn’t we start thinking about that first instead of debating this? Fix the core reason of student loan crisis. Why are colleges feeding on this?
She’s right. It had never occurred to me that student loans would be securitized too. Seems like a way for the banks to create money out of nowhere and then sell the “product” to make some more money. 🤷🏻♀️
No one puts a gun to their head to buy it... stupid is as stupid does...
college is nothing but a business
I've come to view 'market crashes' as the market becoming its true value. Financial investors shouldn't expect huge payouts forever because the industry just doesn't support it.
I agree. Growth for growth's sake and unlimited growth are the attitudes of a bloody cancer.
It's frustrating how this system benefits financial giants while burdening millions of young Americans with debt. It's time for a serious rethink on how higher education is funded and how students can avoid being entrapped in this cycle.
It's funded by you choosing not to pay over $50k on a degree before you know what you want to do with it.
I've seen so many people getting a degree for degree sake, and that is not healthy.
Young people put this debt on themselves.
I somewhat agree. Even if someone were to major in engineering or in healthcare, I think the price tag for obtaining the degree is still astronomically high. Why do we have to put ourselves into $20k into debt after graduating before we start working as a Civil Engineer, for example. Is it normal that we must pay to get a job? Education is practically free thanks to the internet, but the certification for the profession isn't.@@frankwangofficial
i worked at a university for ten years, and i agree that a degree simply for the sake of it isn't the best idea, but there are a lot of reasons on the plus side for having one. One example: job listings that ask for a college degree that don't need one to do the job. Employers do that to screen out candidates, so if you don't have one, you're out of luck there. And it's unreasonable for us to demand that an 18 year-old have their entire career figured out. Times and circumstances change, you can't always plan every detail down to the fine details. But here's the bigger issue,@@frankwangofficial. In my day, you could work summers and vacations and put yourself through school. Those days are long gone. So why is that? Well, one reason is that for too long we've put all the blame on the students and not on the larger forces behind it, and so no headway has been made on it.
Don’t take the loan then lol
The students ultimately chose to take on the debt. What institutions do with that "value" of a loan in terms of securitization, is irrelevant from the borrowers perspective, and does not increase the obligation to the borrower. As for how we can better deal with education funding, we need to look at the fact that too many people who should not be going to college are. When only 60% of students graduate, and only 1/3 of graduates actually have a career in their chosen major, it means less than 20 out of 100 students are realizing the primary goal of why they go to college in the first place. Also compound those stats with nearly 40% of incoming freshmen at public colleges do not have the requisite reading, writing and mathematic skills to perform college level coursework, and need to take remedial classes just to be up to speed. We also need to look at college curriculum, and make some hard choices in regards to the cost of a degree versus earning potential from that degree. Get those things sorted, and you can get enrollments down and at a level where colleges wont see raising tuition as a never ending gravy train of funding.
Same as the 2008 home crisis but now student loans.
We don’t learn. And more pre-approved CCs are going out to help fund the “pyramid scheme”. Again, we don’t learn.
Collecting and packaging debt together doesn't magically decrease the risk. While yes, the risk that one individual component loan may go bust is mitigated, if all go bust...
Similar, but some important differences: (1- the overall value of outstanding student loans is considerably less than mortgages. There is far less to bail out in case of a collapse. (2- the guaranteeing of student loans by the government means less risk to the investor, as well as the fact the loan cant be discharged through bankruptcy. A home loan can be discharged, and then the owner of that loan/property has to deal with what to do with the property. A student loan will ultimately be paid on even if it goes to the grave with the borrower.
*now with added student loans 😂
@@heinz-haraldfrentzen1261perfectly explained, thank you
Just like 2008, now the student loans are packaged.
Why is everyone so against loan forgiveness for students yet literally don’t have this same energy when large corporations and politicians give themselves loan forgiveness all the time? We don’t have this same energy when money is being funneled towards immigration housing and the war effort in Ukraine but we are so against student loan forgiveness for people who were born here? I just can’t wrap my mind around this.
Because you can't market your personal loans as community beneficial, but busnisses and politicians do
Because it's unfair to make the poor suffer through more inflation so that you can get a handout.
@@ommietheman7894 but when the overal student debt is over $1trillion and it has been proven that forgiveness would give people the ability to spend more, isn't that beneficial for the economy as a whole? As it is now student loan debt is going to be a hinderance in peoples lives for years to come (20+ for some) effecting a lot of their purchasing decisions including homes, cars, children, etc. That all means potentially less money flowing into the economy for years to come. This just isn't sustainable with interest rates. It's annoying how the people always have to justify needing help. Corporations have gotten bailed out time and time again and time and time again they just keep more money for themselves.
“Guaranteeing 97% to 100% and we expected Wall Street to not get crazy
Because Ukraine must become the big israel u fool don’t question money for Ukraine you Putin puppet
Great video outlining how complex the student-loan-debt is. Often times, we see the debate focusing only on loan forgiveness, which I fully support. But we need to address the other aspects. Tuition prices have increased exponentially. Allowing bankruptcy would force banks to be more careful in granting loans and then prevent abusive price increases.
It is important to raise the debate beyond loan forgiveness. Otherwise, we help those indebted now but, in a few years, a new indebted generation will emerge.
If bankruptcy is allowed, lenders will respond by only loaning to students with majors that have some relevant use to ensure repayment (Doctor, Lawyer, Engineer). Other fields of study that don't ensure high paying careers (counseling, social work, etc.) would see a steep decrease in graduates due to banks refusing to loan due to repayment risk. As for how we can better deal with education funding, we need to look at the fact that too many people who should not be going to college are. When only 60% of students graduate, and only 1/3 of graduates actually have a career in their chosen major, it means less than 20 out of 100 students are realizing the primary goal of why they go to college in the first place. Also compound those stats with nearly 40% of incoming freshmen at public colleges do not have the requisite reading, writing and mathematic skills to perform college level coursework, and need to take remedial classes just to be up to speed. Maybe it's time for getting back to what college was originally for, advanced learning for the academically exceptional.
@@heinz-haraldfrentzen1261 the problem is, where does that leave those who aren't as exceptional especially as we move into a new era of automation? I don't disagree with what you're saying, but it is almost a damned if you do, dammed if you don't situation here.
FUN FACT: Sen. Joe Biden was one of the few Democrats who sided with credit-card companies that were trying to make it harder for people to declare bankruptcy and in 2005 supported and championed the bill that stripped students of bank of bankruptcy protections and left millions in financial stress, and right after his family heavily invested in credit card institutions
@@heinz-haraldfrentzen1261 check your pride
@@heinz-haraldfrentzen1261Yeah or just subsidize it from the government and force universities to lower their prices
I would not recommend student loans to even my worst enemy. Ended up with 24k debt paying 300 dollars a month while not even making a dent on that loan just getting bigger and bigger. At the same time having a degree that was not even usable as toilet paper. Wasted 3 years my entier GI bill on a scam collage that was government approved BTW. Let the crash happen no more loans given out will save future people the distress I went through. Student loans should be able to go through bankruptcy like any other loan. Hold college accountable for there actions and ensure quality education.
The price of education is not the same thing as the "cost of education"... Price has been rising, not the cost. The cost of athletics facilities and campus amenities has increased voluntarily, nothing to do with the cost of education.
Students are told for their entire lives that they should make this one specific decision. They are told by people whom they are dependent on emotionally and financially. People who they respect, take orders from, and have no choice but to listen to in so many other major aspects of their lives. And when the realization comes that they were mislead, that everyone was wrong, then suddenly it's the child's fault...?
"The kid touched the hot stove, I only said that they had no choice but to do it, I only lied to them and told them that it's good for their well-being, I didn't physically force their hand onto it, I just pressured them incessantly. I'm clearly not taking any responsibility for their burn injury, I did nothing wrong"
The manipulated are being blamed by the manipulators, that's immoral.
We need more people in the trades anyway. I'll be the first to tell you that college is not for everyone. I know quite a few people that never finished.
Pay it back twice.Quit borrowing.
Its kinda crazy how the world works, we are programmed to loan starting from education to working to raise a family and till we die and didn’t stop there the cycle goes to our families after it ..
Online loans nowadays is also scary, roughly 65% of people use it on my country and many failed to payback..
I hope more people waking up that the credit system is corrupted and never use it again.
Literally selling kids something that has less and less value every day, yet they're increasing the price of it... Only in America
There are a few options available for everyone who doesn’t want to pay student loans: 1. Get a scholarship, which could be in sports or academics. 2. Join the military. 3. Go to a community college. The only person to blame for student loans is yourself.
Or pay for it yourself with your money.
@@chowsquid Excellent point!
I did join the military. What makes you think joining the military makes college free?
@@droolalot5795 Nothing is ever free, but college is free after you do your time on active duty. Please show otherwise. Also, you can receive scholarships for being in ROTC or funding joining the Army reserves.
@@droolalot5795 Did you not use your benefits when you were in the military? Did you utilize your benefits once you left the military?
Thank you for this important reporting, CNBC. This shines some light into a dim area for student loan borrowers.
During GFC in 2008, I was watching a show and a commentator said “after MBS collapse, money will flow to student loans…”. I was watching with my 15yo son, talking about the traps ahead. He did not choose college, went to a free coding school, now a software engineer.
"There is NO way!" Lol.. right. Famous last words.
The government either needs to stop subsidizing student loans or create more stringent requirements for granting them. Granting massive loans for studies in fields that are unlikely to financially justify the investment is a recipe for disaster.
While the government enabled this problem to happen with the FSLP, students took these loans willingly and they are ultimately responsible for repaying it back. "Forgiving loans" passes the cost to every taxpayer, which is unfair to those that 1. Never went to college or 2. Already paid for their education.
6:33 her words... "I saw the parallels" between those mortgage backed securities and student loans. Holy hell EXACTLY!!!! 🤯
And why does it take 5 minutes in to the video to show this. I knew this from the title itself. So callee “genius “ reporting 😂
All I want is for the student loan system not to be a scam. I would be happy with 1-2% APR school loans. I’m in my mid 30s, went to a state school with no board, and I’m still paying them off because the first decade of payments were over 10% Apr. Its unreal.
😂😂😂 1%??😂😂😂
You can’t be serious.
You think you can borrow tons of money with no prospects of payback AND get better rate than someone with 800 credit score?😂
many simply work and save for college and attend debt free, instead of going in debt and gambling for a better future that college may or may not provide
Why don’t you just pay them down quicker to pay less interest?
@@chowsquidyes.
Oh no, over 10%? Wait till you hear about credit cards /s
I genuinely love these documentaries. After watching so many series from this channel, the phrase “knowledge is power” is a primary and essential theme to always derive when addressing modern day issues faced by all kinds of general and private disciplines. Now if I can just down load these for future references for my next of kin(s)
Yeah, as I grow older getting knowledge like this makes me further socialist, as I become more aware that the evil in the world is companies making money off of making people miserable and dying, especially since many students commit suicide from student loans
Bots incoming
The title should be Education Funded by Wall Street. That’s why you’re able to get decent/low interest rate with long terms and can differ the payments for months/years.
It feels phenomenal to be 100% debt free.
It can only mean you are swimming in the right direction, instead of the masses who are swimming counter waves and giving all their opportunity cost to banks and money lenders.
@@ricardodelacrvz1400 Preach!
I paid mine off during the freeze with no interest instead of buying takeout every night during the lockdown with the unemployment money.
@@MrBrewman95 Me too. I ate out only on Fridays as a treat. 60% of Americans didn't pay anything gon their student loans during the freeze.
pay your student loans later
Refreshing to see some quality substantive reporting on this issue instead of the usual.
The other institutions profiteering off this are obviously the academic. How do they justify the skyrocketing prices? How do we apply downward pressure on prices? I have some ideas but barely see it discussed.
The fact that these are not bankruptable may keep SLABs going, but it's sounding a bit like CDOs and what happened with them in 2008.
But yet the rich had their PPP Loans forgiven 🤔
Not only the rich got PPP loans
The fact is this, that most people will have student loan debt so large, and pay so low; that any wealth they generate via assets will be used to collateralize that debt when they pass. Meaning the ability provide generational wealth, will be something that very few ever achieve and most will only dream of.
Just payoff the subsidized loans before interest accrues.
And don’t get any other kinds of loans.
Lol buzzword bingo. Generational wealth.
I was just reading a very interesting paper on SLABS recently. What a great time for this to come to my news feed! Very grateful neither my bachelor's or my girlfriend's BS or Masters required loans!
I am interested in that paper Tom, do you have a linnk to share or a place I can order a copy?
Is there anything in the US that is not turned into a business?
Air
@@cfltheman dont give them ideas bro
Profiting off other people's misery makes you no better than a drug dealer. Attending glitzy charity dinners doesn't change that at all.
Everything in this system is for sale, you either in the game or you not. If someone can own shares in your debt, that should tell you everything you need know about the system we’re living in. It’s all about money, graduate, get a job, get a side job, and invest. Utilize that loan to build your credit up and get on it…
The Government is not helping because they know that you just don’t understand the game..
Giving an 18 year old with no line of credit upwards of $20K a year in student loans at exuberant interest rates of 8% or more after a 5 to 10 minute student loan "entrance counselling" is the equivalent to giving a 6 year old a car payment. It should be illegal, as a 40 year old with student loans myself; I regret my student loans every day.
It’s a double edged sword. People who shouldn’t have taken a loan for the degree they’re getting and a normal investor investing in an ETF that buys these securities. Both are fuel to this fire
We never talk about why colleges are allowed to continue raise the cost of tuition. Why isn’t Biden railing against Harvard for charging such a ridiculous amount to attend their university?
We can even go back further...why are we not asking why high school seniors are so clueless to how math and money works? If they were taught any useful life skills they would have had some idea of how think critically of whether the college cost matched the value. Seems sorta fishy...like maybe K-12 is in cahoots with colleges, banks, politicians etc.
Never forgiving the debt is a way of control by the government and those in power.
It reduces the risk to the lender thus reducing cost.
Let's assume 43 million Americans are having financial issues that they can not afford extra spending for a higher education?
student loans benefit the teachers and universities the most. they sell a product that you cant return even ifit is defective. there needs to be a lemon law.
Well now teachers are getting paid less so the universities are creating a wealth gap between the school and it's faculty members.
@@doctordl7757 a good Chuck is in their benefits teachers act like they are getting paid less but never includetheir benefits and pensions
I'm glad that even my country is poor, it gives free tuition to average upcoming college students.
What country is that?
same here in the USA, you get tuition if you are poor. you only have to pay if you come from wealthy family. lots of those loans are not for tuition, its more for their expenses during study.
@@spektredsome shithole in Africa probably.
i had to pivot my career in design to pay off my student loans since my industry pays penny’s, no holiday pay, and no retirement. i’m a slave to my debts, no kids no family because i can barely sustain myself. mid thirties are approaching and i plan to be out of debt by then. hopefully be able to start a family by then. thanks investors, you really contributed to my anxiety attacks, depression, suicidal thoughts for feeling like a financial failure, and delaying progressing in my private life the last 10 years. #millennial
I just watched The Big Short. Now this shows up in my recommendations. Makes sense.
Make college a bare bones institution with none of the extra fluff or pointless courses/positions, and costs will plummet
it won't lmao, colleges can charge as much as they want for the ability to go there for a degree and people will still pay for it because they view a college degree as a necessary investment to get a job. There is a reason costs have ballooned in the past 20 years even though the departments haven't changed much and its not because of a couple new classes or positions.
Honestly 50% of all my college classes were f'n pointless. I was an accountant. I didn't need more English, Calc, biology, history, or art.
Could've learned what I needed in 2 years
Try selling that idea to the investors who've learned how to game the system and have created their debtor ranks. They're powerful and can easily co-opt idiotic voters to get behind their ideas en masse with a few buzzwords like 'communism', 'democrat', etc... Neither Rep. nor Dem by the way.
I've been watching some documentaries on netflix on unrelated topics like counterfeit goods etc. They all have one overarching reason why the product exists....demand. If there were schools (and there are) that just offered classes to get educated without the football teams, the in person learning, the parties, the name prestige, etc., the problem is that the demand is low. Kids still want that college life and the name. Get kids to adjust their thinking to just wanting to get educated and get a degree and they won't necessarily have so much, if any student loan debt.
@tw4601 Good idea, but have you seen the narcissistic world we live in.
I'm afraid to even take out another loan for education, the risk is too high. I hate my IT profession and it didn't work out for me in the long run; I'm going to take out another loan to probably make under $90k a year?
California is raising it's state college tuition by 6% a year for the next five years. 😭
I love these videos so much
Women hold 66% of all student loan debt. 41% of women undergraduates take out student loans, compared to 35% of male undergraduates. Women take an additional two years on average to pay off student loans. Black women have the highest average amount of debt.
So student loans are the new mortgaged backed securities?
The title of this documentary should've been STUDENT LOAN CORPORATION
Anytime money 💰 moves someone makes a profit 💲
Yup exactly whyyyyy we should all just collectively not pay them🤷🏾♂️ what they gone do
garnish wages. you cannot escape paying it back. student loans are the only thing that does not go away if you file for bankruptcy.
100% put that law degree to practice
Maybe you could just actually read up on that subject, college grad. You ain't getting out of that bill deadbeat.
Levies… heavy levies
The govt steals from us everyday🤷🏾♂️
How can I buy some of these student loan securities? Sounds great to me.
And that’s way they will never ever forgive student loan debt.
This seems too similar to how subprime loans were advertised to investors. As a college student, I see an increasingly large number of college students who are planning on defaulting and declaring bankruptcy, or making below the income level for federal loans to be due.
This seems like a higher risk investment than I would personally do. If the US government doesn't erase student loan debt (not that I want them to) this could cause economic problems in our future.
No wonder they don’t forgive those loans. Lol
going into debt for a useless degree is the dumbest thing you can do in 2023.
Got my Engineering Degree in 1993. Thanks to Senator Claiborne Pell.
And we wonder why education is so expensive? Students and supporting parents. Look really hard into other educational choices. Such as trade schools, or extending graduation dates. Taking eight years to graduate from a four year degree, may be an option if you can pay for it cash, while you work at lower levels in the field you’re trying to major in. That’ll get you some expense while you get your degree. Is better to take eight years to get your degree than getting it in four and be in debt for 20! Worked well for me.
In 1970 most students were aided by their parents in making college and loan decisions. 17 year olds making the largest financial decision of their lives is pretty scary. Not only do they choose majors that have a poor return on investment, but they also drive the costs sky high. In the 70s the food was terrible, the dorms were terrible and the classrooms were terrible. Students today would not attend a 70s type college. The upgrades to country club anemities comes with country club costs!
6:12 is a bit of an understatement
Student loan + Credit Card Debit + Buy Now Pay Later + looming Global Insurance Crisis = the next financial crash.
They keep saying “there’s no way…there’s no way..” well let me tell you kids something about 2008. We said the same thing. They WANT you to keep borrowing..They don’t care if we go into recession because you will be the ones that will get caught holding the bag
$1000 per credit, which means $3000-4000 before the interest per class and without dorming for any private university.
How about colleges and governments?
You do know that the rating agencies were hand in hand with banks on horrible sub prime loan packaging causing the housing crash right?
Yup. It’s bizarre anyone still use them.
Just rate it yourself
The scandals of Federal Student Loans break all laws which other type loans must comply with.
Federal Student Loans are banned from bankruptcy processing. The Student Loan only exception is if the borrower becomes physically or mentally incapacitated.
Federal Student Loans have no repayment end date.
This makes the Student Loan a perpetual debt, and violates the Thirteenth Amendment.
The Federal Student Loan exceed thirty years debt limit.
Federal Student Loans do not necessarily have a court issued judgment. And in cases where there is a judgment, the Student Loans are not renewed after ten years, which is prescribed by by law in all debt judgment cases.
The Federal Student Loans attaches garnishes directly to the Treasury, and to the Internal Revenue Service, even widows pension are garnished without a judgment issued by a court order.
The Federal Student Loans violates The Truth and Lending Act, as it fails to disclosed the actual cost of the Student Loans.
They are doing exactly the same thing with student loans that they did with housing loans in 2008.
One day the chickens are going to come home to roost, and we will all suffer for it.
It’s time for Congress to end this monopoly system and bring down Wall Street time to vote them out
Most men avoid student loan while women keep countinue go to collage so which one are smarter
So student loans are very hard to discharge and also securitized is almost diabolic
Actually it’s used as a business asset that losses can be written off but forget that it’s always a loss even though the government supplied it
Wall Street basically securitized everything huh? Not surprising if one day they even securitized their own mothers for profit😂😂😂
😆😆😆
That's why they took issue to the Supreme court instead of allowing to cancel them. That would have eliminated this lucrative business altogether.
Just don't borrow it. You will have no problem
good idea.. and work fast food?
@@joeisawesome540
Why not? That's how I paid for my college tuition without borrowing a penny
@@x-men69-96 good for you..
Joining the military is how a lot of people cover their college tuition.
@@nickd2296 only Democrat people want everything is free and do nothing about it
I wonder if instead of paying student loans, if you had bought slabs debt and joined the investors, would you have fully paid off and profited from your own + everyones pooled debt? o.o
or does that lead to a situation where wallstreet will block you from doing so, like how the internet made instant millionaires from gaming the system with gamestop stock?
Whenever there is a
Margin, there is profits.
If there’s no profit, why would anyone lend others money? Especially when there’s a high risky of default. The no discharge removes a big chunk of that risk.
I would recommend documentary borrowed future
Eleanor Xu is one of the most bright financial experts I have ever heard. Because she cares about people and the whole situation rather than just another financial a-hole leeching and taking as much as they possible can from any person regardless of anything.
As someone who barely graduated highschool with D's and a few C's, glad I started working factories rather than going to college, SLABS been paying my bills since 2013 😊
yea.. you probably wouldn't got into a college, so factory is probably the best option
College is not supposed to be for people that barely pass high school
Mmmhmmm sure bot boy
Given those grades, you did the right thing
@@joeisawesome540beats being a slave to debt tbh..
A good deal student loans don't even go away with bankruptcy
Someone or some company gets profited doesn't mean its bad for others.
It provides liquidity
Student loan companies are predatory to the point of immorality.
Damn could you imagine taking out a loan having the government help back it so you qualify then being upset about having to pay it back.
Debt means a lot of things to a lot of different people.
This whole subject reminds me of the Children's book, “Cousin Matilda and the Foolish Wolf”.
The *SLARS (Auction Rate Notes)* are the _ARM_ of the *Student Loan market.* If the *SLARS disappears,* then the _ARM will be amputated._ (The foolish wolf says to Cousin Matilda, “Ouch! Ouch! Ouch! You weren't in the markets today.”) This will cause the _financial crisis bomb_ to _detonate_ because the *ARM* - a type of wire for the detonation - *market supports the federal market.* (And Cousin Matilda says, “Oh, no. I stopped investing in the market many decades ago when I saw the scam behind it.”) Similarly, the *Bond Market (i.e., the lifeblood of the Free Market system)* provides _liquidity_ for the _Stock Market (i.e., the heart of artificial wealth)._ And, if the *Federal Government (i.e., the foolish wolf)* _cannot pay off its debt because of a lack of funding,_ then that would *destroy its Credit Rating.* (The foolish wolf says, “Ouch! Ouch! Ouch! Cousin Matilda, what do I do now?” And, Cousin Matilda says, "Stop spending money on Welfare Subsidies and Grants, foolish wolf.")
[Ecclesiastes 1:9 (KJV) The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun.]
[Proverbs 22:7 (KJV) The rich ruleth over the poor, and the borrower is servant to the lender.]
The _depth and size_ of the *US financial market* are _major factors_ in the *Investment Banking Golden Triangle.* The US market stands on its own, compared to Europe, because its _size is a proxy._
_Scale economies in big markets_ mean one of two things:
1. Reinsurers are forced to globalize because their individual national markets are small.
*or*
2. Reinsurers have no incentive to expand overseas because the market is large enough to permit a sufficient geographic distribution of risk.
[Proverbs 11:15 (KJV) He that is surety for a stranger shall smart for it: and he that hateth suretiship is sure.]
*Increased credit enhancement* via the _creation of post-2010 new financial instruments (e.g., Insurance and Reinsurance Policies)_ will *hedge against systemic failure?* Instead of _destroying the self-destructive molecular formula_ from the *original pre-2008 crash Pharameutical Drug,* you _created a new constituent and added it to the 'original' formula_ through *special underwriting language in order to hedge against systemic loss?*
How many *pre-2008 'internal' and 'external' credit enhancement measures were put forth very aggressively,* and yet, you _still experienced a crash and burn_ of the *VR-based Free Markets Bubble?*
How many *Papal Jewish Bankers* and *Papal Investment Bankers* came up with these _foolish credit enhancements, funding and collateralization methods, financial instruments and services?_
How many *Papal Knighthoods were issued from the Vatican's Vending Machine of Knighthoods* just to keep these effeminate *Papal brats* _focused on something other than polishing their nails and toes with Pink Nail Polish?_
[1 Timothy 6:10a (KJV) For the love of money is the root of all evil:]
Hilarious that one lady "NO WAY THERE IS NOW WAY" Im sure many daid that before houses dropped 60% in vegas 13 years ago 😅
You are crazy!! These are federal student loans. With extended recovery time. Comes with many options to ranging from wiping out the interest to extend the duration. These are seldom sold with securitisation.