Student debt may hurt housing recovery...

By
Property Manager with AmeriTeam Property Management SL#3200658
https://activerain.com/droplet/4c5K

Student debt may hurt housing recovery...

Student debt may hurt housing recovery...

 

http://www.washingtonpost.com/business/economy/student-debt-may-hurt-housing-recovery-by-hampering-first-time-buyers

 

My initial reaction to this story was but a simple "Yep".  I mean, I don't necessarily see anything profound or earth-shattering about news that student loan debt might hurt those bearing said debt- or any other debt for that matter.  Money going out the door towards anything inherently leaves less money to pay for other wants, needs and/or responsibilities.

 

A bit more thought got me riled up a bit, in that I really don't care for where this story in particular and the student loan debt argument in general is headed.  Got medical bills?  Yep, they could zap your savings and hurt your chances of getting a house right away.  Bought more car than you can afford?  Bingo- another obligation that could stunt one's path to homeownership.

 

And I call that....life.

 

I've seen a number of credit reports over the past 13 years or so I've spent in the property management business- upwards of 3,000 to be sure, possibly 4,000.  I've seen one from a practicing attorney who was fully capable of passing the bar and earning a great living, yet she'd never made a payment toward a loan in her life.  The $200,000 she owed mirrored another one I recall from a nursing school grad who'd never seen fit to meet an obligation.

 

Despite whatever harm may come to "the housing recovery" that can be directly attributed to student loan debt, I pray students like the ones pictured above will be taught an important lesson:  if you obligate yourself to pay something, you have to pay it or suffer the consequences.

 

Or more simply put- don't take the loan if you don't plan on paying it back.  The well-worn path of "defer, defer, defer...default" needs to come to an end- and we must hold these students responsible for their debts versus looking for ways to relieve them of their responsibilities.

 

I hope I don't have to write a ton of posts like this, but I have a funny feeling others will follow- and when "Auto loan debt may hurt housing recovery", "Insurance debt may hurt housing recovery" and "Colorado marijuana debts may hurt housing recovery" come along, I'll be back.

 

Paraphrasing the note from the college graduate above, when we incur debts, we're "saposed" to pay 'em.  And how might a government which ponders the blanket nullification of student loan debt look?  A bit of a clue can be gleaned from connecting the dots in the sign above- and following the student loan debt protesters' trail straight to the Party for Socialism and Liberation.

 

Student debt may hurt housing recovery...

 

 

 

Posted by
 
DENNIS B. BURGESS
Property Manager

Licensed Florida Realtor
 
AmeriTeam Property Management
845 N. Garland Ave., #200
Orlando, FL  32801
 
 
 
205-445-4755 cell/direct
407-901-3636 x103 office
407-901-5147 office fax
 
Turning vacant into occupied, and "houses" into "homes"SM
 
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Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Dennis.

     The challenge is that "The Culture" insists upon you having a College Degree.  Anyone without a degree is a lesser person. 

     The cost of getting a Degree continues to spiral upward; to a point that most people cannot afford it.  The Federal Government steps in and offer student loans!  Now you have your necessary/coveted degree, but you are saddled with debt that you can never repay. 

 

Feb 18, 2014 09:51 AM #1
Rainmaker
261,986
Lynn Afton
Greenridge Realty Oakmont - Big Rapids, MI
REALTOR® Near Big Rapids, MI, Mecosta County

It is true that many cannot qualify to buy a home because of student loans or any number of thousands of other types of indebtedness.  The bigger picture of the state of our entire economy, too many degreed people that really do not qualify for the jobs they are applying for, leading to depression, drug use, crime and general hopelessness all contribute to the vicious cycle.  Why are students with no income allowed to accumulate so much debt? It's crazy!

Feb 18, 2014 09:51 AM #2
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Fred:  Thank you for stopping by, and for your comment.  Spot on- and in my humble opinion, more scrutiny/emphasis needs to be placed on what type of degrees folks pursue.  Unless you're a pro sports prospect (and thus less likely to really pursue a degree, for the most part), you have no business majoring in "General studies" or any number of degrees that doom you to making no money from the minute you take your first class.

In choosing my Navy field, for example, I looked to one that would benefit me later on in life- and it did.  College students should do the same- but far too often, they're hanging out and putting a ton of faith in the knowledge that getting a degree is the same as getting a valuable degree and one that'll lead to meaningful employment down the road.

Some may pile on with a sort of "don't blame the kids" argument here- but when "the kids" are demanding bailouts and "free" education that's paid for by the rest of us, we need to ensure "the kids" make better choices when picking majors.

And for those who choose to "find themselves" and hang out playing beer pong for a few years, they should roger up to pay for that vacation themselves.

Feb 18, 2014 10:53 AM #3
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Lynn:  Thank you for dropping by, and for your comment.  Exactly- and just as they reformed the way credit card issuers may pursue college students, they oughtta reform the way many incur debt.

Feb 18, 2014 10:54 AM #4
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

Nothing is guaranteed. These people that just keep getting degrees and more debt are nuts. 

I know some that couldnt get jobs (in their specialized fields)when they graduated so went back to school!?!??!?

Feb 18, 2014 12:16 PM #5
Rainmaker
3,983,713
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have a  niece that when she graduated she was $65,000 in debt.  But, she went to spring break every year instead of working and making a few bucks.  Then come summer, she didn't work at all.

I am sorry, but get an extra job.   I was $25,000 in the hole with medical bills at one timeand I worked 3 jobs to get myself out.

You don't need a BRAND NEW car.  Pay off your loan

Feb 18, 2014 01:07 PM #6
Rainmaker
1,030,821
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I can understand going into big debt if you are going to be a doctor or lawyer.   But so many of these people have all these advanced degrees in order to get some $50,000 per year job.  Seriously.  Apparently they did not learn basic math in college or else they would not even be in this debt.  They would be better off being a plumber and making the same paycheck without any debt. 

Feb 19, 2014 01:53 AM #7
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Than:  Thank you for stopping by, and for your comment.  It's a funny thing about stereotypes:  across all facets of life, they're more/less true.  Folks talk about "the guy down the street" with a Master's degree that's bagging groceries because they truly exist.  Those who look to make excuses for those folks would have you believe the baggers have aerospace engineering or medical degrees and that they can't get "real jobs" because of (pick one) George Bush, the time of the year, the area where they live, etc.

The truth, however, is that the baggers have degrees which any reasonable person can see as dead-end streets:  either psychology, general studies, human development, etc.  Those are valuable degrees if your intent is to one day teach those subjects to others, but not so great otherwise.

Feb 19, 2014 04:47 AM #8
Ambassador
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Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Dennis, if Obama could figure out a way to work this out to benefit him he would try to cut that debt away.

Feb 19, 2014 05:23 AM #9
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, William:  Thank you for dropping by, and for your comment.  Sounds like she was bitten by a strain of the all-too-common procrastination disease!

Feb 19, 2014 06:23 AM #10
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Rob:  Thank you for stopping by, and for your comment.  I think we've hit a point (and hit it some time ago) when we simply have too many dreamers (not the Obama DREAMers- that's another post altogether) and too few realists.  Too many kids are still doing the "find yourself" thing and too few are doing the "learn how to take care of yourself" thing.

And I'll even throw the Left-wingers a bone here and acknowledge that it's not all the kids' fault- their parents were sleeping on the job when they chose their majors as well.

Feb 19, 2014 06:28 AM #11
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Mike:  Thank you for stopping by, and for your comment.  I think he was working on that last summer- and will probably re-visit it in an effort to rein in that constituency for the Left.  Luckily for him, they're gullible enough to play suckers for him like the gays, Latinos, blacks and any other group of folks that placed their faith in him in the past- only to be stiffed and left hanging...

Feb 19, 2014 06:41 AM #12
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

It isn't that they can't get a job in their field in a lot of those cases. It is they can't get a job that pays what THEY think they are worth. At least the guy bagging groceries is willing to work for a living instead of living off us.

Feb 20, 2014 11:55 PM #13
Rainmaker
889,755
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

It is a bad thing that I don't have an answer for. I wish I did but I don't.

Feb 21, 2014 02:02 PM #14
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi , Than:  Thank you for dropping by again, and for your comment.  I'll agree with that one.  There are surely jobs out there where one uses their degree as intended and makes next to nothing- when I was at The White House, I knew a number of lower-level folks with Master's degrees that worked 16-hour days and didn't clear $40,000/yr.  There were benefits above/beyond pay, of course- but a number of them did have that "where's that money I was told about?" look and attitude.

"..what THEY think they are worth" has to go hand in hand with "what type of nonsense our current president and his cronies have filled their heads with" as well.  I could go for a while on this one, but I'll just use the simplest of anti-minimum wage increase argument out there for now:

- Joe Public store owner has 10 employees making minimum wage ($7/hr or whatever it is)...total of $70/hr he's laying out.

- Dear Leader..err...Obama goes and raises the minimum wage to $10/hr, and ???

- One of two things must occur:  Joe Public decides that the economy is humming along and life is beautiful, and affords the "new" cost of $100/hr (an increase in labor costs exceeding 42%) OR.... 3 of his $7/hr guys get their walking papers and head elsewhere asking to be paid 42% more than they've been making.

I'm guessing the latter scenario would be the prevailing one- and what would we have accomplished?  We will have added even more folks to the rolls of the unemployed-but-worth-a-lot crowd.  Ridiculous.

Feb 22, 2014 02:47 AM #15
Rainmaker
422,445
Dennis Burgess
AmeriTeam Property Management - Mid Florida, FL
Orlando Property Manager and Realtor

Hi, Sussie:  Thank you for stopping by, and for your comment.  You're not alone there!

Feb 22, 2014 02:48 AM #16
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