Avoid Student Loan Delinquency and Default

Thanks to recent legislation, defaulting on student loans can not only jeopardize credit worthiness, but also deny the defaulting borrower of Social Security benefits. A recent report reveals some of these major changes and the recent trend in defaults.

The study also segments default by the type of borrower, such as graduate vs. undergraduate students and dropping out vs. obtaining a degree. To see the complete article, click here. To learn more about avoiding student loan debt in the first place, click here.

Government Debt Isn't Rational

When comparing the debt of various governments and taking into consideration the debt-to-GDP ratio, one would rationally assume that Japan would have defaulted on it's sovereign debt by now. The reason is that their debt-to-GDP ratio is one of the highest at a whopping 200%.

But this is another display of non-rational, emotion-driven markets, since it's not the actual ability to repay that matters in the near term -- it's the perception of the ability to repay.

For the rest of this article, click here. For the Elliott Wave Principle, click here.