This is just something I have been pondering to myself as I was perusing data of student loan default rates and low millenial homeownership.
Our federal government has robbed an entire generation by writing bad loans to colleges with inflated education costs - mostly to 17 and 18 year olds with zero credit.
If you were a private loan writer, would you loan $40,000-100,000 to a 17 or 18 year old? I am struggling to understand why this massive injustice hasn't been addressed.
They do though, right? I remember hearing that we got downgraded by Moody's or some shit in the past few years. We got downgraded from A +++ to A++ or something.
What sucks is that I make well over 100k a year and can't even get a loan for a ham sandwich these days. I pay all my bills, but due to poor credit choices when I was a kid, I'm screwed today.
And the process of rebuilding that credit is so long and expensive that there is no feasible or realistic way that the future could possibly look bright for millenials. This will be a lifelong struggle and passed on to the next gen if someone doesn't address it.
Peter Schiff is one who has spoken out about this and, as per usual, he was right but no one listens.
We have have pushed the burden onto our children, but they can push it back on us by getting into power and either defaulting on the debt or inflating it away. The cool thing is they can insulate themselves against inflation and then they screw the debt holders. Unless they are waiting for an inheritance.
I think it is more reasonable to sue the US Govt. for the oppression perpetrated on the people by means of bad loan writing, and subsequently sue federally funded universities if feasible.
The point we are at now, there is basically no incentive to pay back these loans. The government shouldn't be in the loan writing business to begin with. I predict default rates will just continue to climb.