Preying Upon the Young and the Stupid

tax payer backed grist for the mill, ripe for grinding

"Two recent studies suggest that this bubble is indeed real and is beginning to burst.  The first is the recent Department of Education report on student loan default rates.  The report shows that the two-year default rate rose from 8.8% in FY (fiscal year) 2009 to 9.1% in FY 2010.  This marks the fifth year of increases in the two-year default rates -- indeed, the two-year rate is nearly double what it was in FY 2005.  This means that the number of borrowers whose first payments were due between 10/01/2009 and 9/30/2010 and who defaulted before 09/30/2011 went up dramatically -- numbering 375,000 in all, on a base of 4.1 million borrowers entering repayment.  Remember -- all these loans are ultimately guaranteed by the government."

Defaults will prove (again) that trees do not grow to the sky.

He will be on vacation in Hawaii in case you chumps students are wondering what your hero is up to for Christmas.  Now, get on down to your mall job at the Foot Locker so you can make the next payment to Sallie Mae on time....better that you pay your student loan bill than me (a Lower Slobovian taxpayer).