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Biggest U.S. Bank: No More Student Loans

The student loan bubble is starting to burst

The largest bank in the United States will stop making student loans in a few weeks.

JPMorgan Chase has sent a memorandum to colleges notifying them that the bank will stop making new student loans in October, according to Reuters.

The official reason is quite bland.

"We just don't see this as a market that we can significantly grow," Thasunda Duckett tells Reuters. Duckett is the chief executive for auto and student loans at Chase, which means she's basically delivering the news that a large part of her business is getting closed down.

The move is eerily reminiscent of the subprime shutdown that happened in 2007. Each time a bank shuttered its subprime unit, the news was presented in much the same way that JPMorgan is spinning the end of its student lending.

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I was a Financial Aid officer

for 2 1/2 years. Students don't typically take those private loans anyway as they have high interest rates and actually expect you to pay them back in a timely manner.

Students will just continue taking out Subsidized and Unsubsidized Stafford Loans because they come from the government. These loans are out of thin air, have low interest rates, and are very forgiving in deferments and paying back.

"Once you become knowledgeable, you have an obligation to do something about it."- Ron Paul

This should be accepted as good news.

Students shouldn't take on student loans but instead, pay as they go. Student loans are a form of indentured servitude.
grant

I have a job and am a

I have a job and am a full-time student. Without student loans I would not be able to go to school. I'm just saying that we're not in the age of being able to pay for college flipping burgers.

Thank you inflation!

And to answer your point, I would rather be an indentured servant and be able to do what I want to do, than to be stuck in some dead-end job.

The metals markets are rising rapidly

I put everything in metals about two years ago. At that time, my 401K was worth about $130K. It dropped to $52K in June. It is now at $65K, less than three months later.

Good

The Universities today are a joke anyway. It is like a daycare for young adults.

Just look at the condition of the dorms - bunch of animals lol

The staff are no better :-)

Can see a bunch of Colleges closing down. The land could definitely be used for more productive porposes. For example, the land is already fertilized with much bs :)

donvino

Sell

Its time to sell in the markets.. this ones going to be even more devestating. Buy silver and gold while you can!!

I heard some statistics on

I heard some statistics on the radio about student loans. It was not a rosey picture. I am not surprised that banks will be slowing this business strategy down.

Barracuda

I missed thanking you for posting this.

(Why do I find these bombshells so late at night)? ;)

late at night = SOP

is standard operating procedure for banksters

I find late at night active

I find late at night active brain waves are at a minimum because most people are asleep. Very little interference with my brain wave activity.

Student college enrollments

Student college enrollments have dropped significantly the last two years.

True

As someone who has worked in College Administration for the past 8 years I can verify that.

"Once you become knowledgeable, you have an obligation to do something about it."- Ron Paul

Cyril's picture

BUMP.

BUMP.

Not exactly an innocent bit of news... :/

Share with your interested/concerned relatives who may need to know about it.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Did We Just Hear...?

...the higher education bubble go "pop"?

Cyril's picture

Start counting... 1... 2?... 3!

Sounds like it's only the first bank of this ballpark...

I guess you will be able to shout a big "POP !!!" when a third of the kind announces the same.

Probably very quietly.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Weird.

Weird.

I used to think that students were like... how to say?... the ideal little animals to milk for these... how to say?... banksters? yeah, that sounds about right... "bankers" doesn't quite fit anymore...

So...

How come they're becoming picky with such a blessing of an ideally submissive cattle... NOW... that... you know... the economy... is... RECOVERING?!!!

Weird, isn't it?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

deacon's picture

man oh man

Your comments are pegging my sarcometer :)
deacon

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

Cyril's picture

'Welcome.

'Welcome. My pleasure. Well, if I dare say...

Anyway, a pleasure way more bitter than it is weet...

(sigh)

P.S.
More seriously, I wonder how many students (and parents) are or will soon be freaking out... Or if the MSM will dare report that...

Oh my. Glad it's behind me by 18 years!

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

deacon's picture

If it was me

and i had a college loan,i wouldn't pay it back
this in turn might help bring that house of cards down around them
they knew what and why they loaned them kids,some without jobs that money
it certainly was not to help them out,to further their studies
It was all done to trap the younger generation
This was to keep their minds occupied by working long hours with little pay
This way,they do not see what happened to them,or even why it happened
let that bubble burst,but i bet it will be noting more than a vrrrrp sound
when and if it gets reported by anyone
With the debt based society,everyone is a slave,the younger generation more so seeing get to pay back the imaginary debt to the tune of $14 trillion
(but i would bet it is triple that fake amount),then they get to pay back
their own personal fake debt
deacon

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

Cyril's picture

Congress is not interested

Well, as we know, to get even remotely close to pay back "only" $FRN 17 trillions worth of debt, that would probably require several centuries, and 75% of 400+ millions americans (yet to be born) working double time for 16 hours a day, and 365/365.

But here's the thing:

Congress is absolutely not interested in if only junior high arithmetics.

Big numbers in liabilities don't speak to them... Heck, that's not coming out of their pockets, anyway, does it?

They're much more proficient in writing fiction and other speculative essays that they call "laws".

In the latter (activity), you have to admit that they do attain pure excellence, don't they?!

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

deacon's picture

well if there was an award

for F'ing things up,not many would go home
empty handed
as far as excellence goes,most have their butts filled with anothers hand
they get told what to say/write/read
shoot man,not a one of them is smart enough to write the patriot act,but that came from a few of them
not a one is smart enough to write that health care debacle,but here they are
so whom,is behind their scenes doing it all for them?

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

There is a term for it.

I heard it first from Catherine Austin Fitts. Fraudulent Inducement.

When a Lender makes loans they know, can't be repaid because they are 'insiders' to a scheme to enslave the borrower. No free market, Government (FORCE OF THE STATE), allows no relief.

While I think we should all pay our debts as a matter of our personal honor, I don't condone tricking dumbed down people to make them slaves.

The banksters have ruined so many lives with their evil schemes.

deacon's picture

lol

I do agree with you about personal honor
they have none,they have tricked,coerced
threatened and incarcerated people for their own fraud
the only way,i see to end this,is to bankrupt them
and seeing that monopoly money is fake,not paying it back
doesn't steal or take away ones honor
Now if you and I had a monetary agreement,I would honor that
as we both have our own honor,and our word,my word to all,is my bond
banksters can't lay claim to that,and be honest about it
And if the US congress can vote us into slavery,and to hands of crooks
I say enough is enough,let them all sink,and If i can help,I will certainly will
I could put a true story here,but this might not be the time fr it,but I could,and it would be about what them banksters did to me,and how I got
70 grand in debt,and all based on lies,bundling,and betting against those who might fall
deacon

If we deny truth before your very eyes,then the rest of what we have to say,is of little consequence

Thank you both for your thoughts!

I agree this is BIG. Perhaps a bill in the works to no longer protect the banks from the current laws that make student loans excluded from Bankrupt rulings?

I have not researched to see if any are under consideration.

But I have heard that that loans for housing (No Doc) are coming back into play.

Regardless, the fictional money system has cracks spreading from all corners of the earth, and whistle blowers popping out of them.

What has been brewing since the creation of the fed, is now no longer sustainable.