Student Loan defaults 100% correlated to lousy nationwide unemployment rate..
There is no question that the problem with student loan defaults is 100% correlated to the the lousy nationwide employment rate. Short sellers and the press (who have just been shills for the shorts) have been screaming that education costs to much and that schools offer #$%$ educational programs, as evidenced by the lack of employment opportunities to graduates. Their logic is that if education is so great, why are the students all getting fantastic jobs? It is completely twisted logic. The problem is not the "education". The problem is that the job market stinks across the board. Now the private sector job market is not something that the government can ever guarantee, but they certainly could use much better job creation policies. Obama, while good in many things, has been a total failure in this regard. Despite the negative press, the demand for education remains strong. ESI has seen no fall off in potential students expressing interest in going to their schools. Everyone knows that a no-education life means that you will live a bleak life at the bottom of the socioeconomic ladder. Why do so many foreigners and immigrants come here and push their kids to go to school, when the parents themselves grew up without any education? These parents know better than to listen to this crackpot mumbo jumbo from the short sellers and the press about the education sector. They will spend every last penny they have to put their kids through school and they do so with good reason.
The student loan issue is not a problem that is caused by the education sector. It is a problem that is a result of the lousy job market, which the education sector has no control over. No one was screaming anything bad about the education sector until 2009, when the job market went off a cliff.