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Destiny 2's Eververse economy is still horrible

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Destiny 2’s Forsaken expansion comes with a new season of Eververse cosmetic items. Some of the new stuff is cool, but it all comes in random Bright Engram loot boxes. And, while Bungie has taken some steps to improve this economy in response to community backlash, the most desirable items are still extremely rare, and acquiring them is very, very expensive.

Here’s what’s new with this system, as well as what hasn’t changed.

Hard numbers … but not really

Bungie has published a new page on its website explaining the probabilities and mechanics underlying Bright Engrams. Loot systems are usually opaque and obscure by nature, so it’s always a good thing when we get some transparency about how things work. However, while some of this information is useful, Bungie has organized the page to hide the odds of some of the real jackpot outcomes.

A Bright Engram will contain one loot item, one consumable item — shaders or a transmat effects — and the new Eververse bounty note. Five engrams cost 800 silver, and you can buy 6000 silver for $50. So, if you buy engrams at the best possible per-engram prices, you’re paying about $1.35 each.

According to Bungie, six percent of Bright Engrams will contain an “exotic accessory,” which is a ghost shell, a ship or a Sparrow vehicle, and 11 percent will contain an “exotic account scoped” item, which is either an exotic item skin or an exotic emote. Exotic emotes cause your character to conjure a holographic prop to taunt an opponent.


Big mood
Bungie/Activision

The relative desirability of these items is subjective, but most players seem to want the exotic emotes with the exotic sparrows and shells as a secondary priority. Although Bungie bundles the emotes along with the weapon skins in its “account scoped category,” the emotes cost four times as much Bright Dust to purchase when they’re in Tess Everiss’ rotating inventory.

And while putting emotes and weapon skins under the same category sort of makes sense, since they are account-wide items classed as exotic rarity, doing so obscures the fact that there are three times as many exotic ornaments as exotic emotes on Tess’s loot table. That means the likelihood of unpacking an exotic emote from a bright engram is about three percent, or one in 33. So, it will likely cost around $50 to find one emote by buying Bright Engrams.

The cost of collecting all the emotes and other goodies is hard to figure out. Bungie has implemented a knockout system for “account scoped” items like ornaments and emotes, which prevents you from getting duplicates, but pieces of the seasonal Eververse armor set and “accessories” like legendary ships, sparrows and shells aren’t subject to the knockout rule. That is the worst outcome of a Destiny loot box, and these items make up more than half of all boxes.

Since only half the drops are on the knockout list, it isn’t clear how knocking out an item affects the odds of getting the stuff you want. If I have six of the “exotic account scoped items” is my chance of getting an item from that list still 11 percent from my next box? Or is it eight percent because I already have a quarter of the items on the list? If I have all of the rare account scoped items, how does eliminating them from my loot table affect my odds of getting an exotic? Bungie isn’t sharing this information.

According to Bungie’s explanation, there is also a pity timer system that increases the odds of getting an item from a particular category with each box you open without getting one. This means that it is impossible to open a certain number of boxes without getting an exotic account scoped item or an exotic accessory. However, we don’t know how many boxes you have to open before this kicks in, and getting an exotic ornament will reset your pity timer for exotic emotes, since they belong to the same category. You can open a lot of boxes without finding an exotic emote, despite this mechanic.

As a result of the limited information we have available about these mechanics, it’s very difficult to figure out how much it would cost to collect all six exotic emotes by opening Bright Engrams. But it’s in the hundreds of dollars, probably somewhere in the neighborhood of $300, but maybe even more. And keep in mind that Bungie runs three seasons of Eververse content per year at these prices, as well as several events with their own special limited-time loot tables.

Destiny 2 cosmetics are very expensive.

The Prismatic Matrix and Tess’s Bounties

There are, however, a couple of systems that offer players access to a few more exotic cosmetic items if they don’t want to spend that kind of money on the game.

First of all, you still get Engrams from earning experience points; you are given a “well-rested” buff each week that gives you triple experience for the first three Bright Engrams you earn, so you’ll get those fairly quickly. You then have to play twice as much to get four Engrams as you do to get three.

There are more milestones in Forsaken than there were in Destiny 2’s first year, which means more stuff to do. But even if you chase all your milestones and do the raid every week, you probably won’t earn more than four Engrams. A season is about 16 weeks long, so you will earn 48 Engrams under well-rested buffs and maybe reach a total of 64 engrams if you’re a hardcore player putting substantial hours into the game.


A menu in Destiny 2 showing a variety of items you might win in a Bright Engram

It’s very hard to figure out the odds of getting what you want
Bungie/Activision

There is a new system, introduced during season three, called the Prismatic Matrix. Tess has a list each week of 10 items, and two will be exotic. You can get one at random for 200 silver — about two bucks. You can get a free random item off this list each week, and rewards you’ve already collected are knocked out of the list, so the probability of getting the exotic is pretty favorable if you’ve already collected a lot of the junk; certainly much better than getting that specific item out of a Bright Engram.

If you use your free roll and don’t get the item you want, that’s where your credit card comes in. But since this is a knockout list, the odds of getting your item improve with each subsequent spin, since the unwanted item you got on the last spin is removed. If you buy 10 spins, you should get all 10 items. This is the closest Destiny 2 gets to a-la-carte cosmetic sales.

Tess also still has her weekly inventory that she sells for Bright Dust. Bright Dust is the currency you get from dismantling unwanted loot; destroying a shell or sparrow gives you 100 dust. You also sometimes get larger amounts of dust as your loot in your Bright Engrams. Tess also now has bounties that award Bright Dust, which is a new feature in Forsaken.

The Eververse Bounty Notes you get in Bright Engrams now are exchanged for bounties. Bounties that cost one note award 20 Bright Dust, bounties that cost three notes award 70 dust and bounties that cost six notes award 150 dust. So, you get 20 to 25 extra dust per engram. If you earn about three free Engrams per week, that’s an extra 1,000 to 1,200 dust over the course of a three month season.

An exotic emote costs 3,250 dust and a sparrow costs 2,500, so if you dismantle your junk ships and sparrows and you do Eververse bounties, you should probably get enough free dust to buy one exotic item of your choice without spending any money, in addition to the random ones you find in your engrams. But if there are more things you want, you will end up paying.

And, while you can get specific items cheaper through the Prismatic Matrix or for dust through Tess’s inventory, you have to wait for the items you want to show up in the weekly rotation. That might happen next week, or it might be months from now.

Overpriced, complicated and kind of shitty

One thing I had hoped to be able to share with readers here was whether it is optimal to spend Bright Dust on expensive exotics, or whether it is better to use it to buy cheaper blue quality stuff on the knockout lists in order to remove those from your engram loot tables and Prismatic Matrices.

And it’s very hard to give a strong recommendation there; the systems are so arcane and complicated that it’s difficult to figure out how beneficial knocking those things out might be. I think it is probably better to just buy the exotic items you want.

The benefits of the knockout list seem limited for Bright Engrams; it seems like the pity timer mechanic is a much greater factor in determining how often you will get exotics from boxes. Knocking an item out improves your odds at the Prismatic Matrix; if you’ve got four non-exotic items on Tess’s weekly list, then your odds of getting an exotic improve from one in five to one in three. But if you use your free weekly Matrix spin, and you don’t get the item you want, the only way to get another shot is to pay $2 for another try.

I also opened 20 boxes to see what real results looked like. I got one exotic ornament, one exotic sparrow, one exotic ghost shell and none of the emotes. That’s actually a really good result based on the odds, but I certainly didn’t feel it was worth the $30 it cost to buy those engrams.

On top of that, ghost shells and sparrows each have a randomized perk. All exotic sparrows reach the same top speed, so the perks don’t matter a lot, but the sparrow I got has a perk that gives it a shorter cooldown between summonings. That means that if I get blown up while I am riding it, I can summon a new one sooner than normal. It’s situational at best. I have an old one that has a perk that allows it to summon instantly. Once again, this is not a huge practical performance difference, but it’s pretty convenient while doing patrols. I will probably continue to use that one, even though the new one looks cool.

Exotic ghost shells, similarly, have two fixed perks and one random. All exotic ghost shells produce gunsmith telemetries from using any elemental weapon. My shell also has a perk called “speed demon” which causes all your sparrows to summon instantly and reloads your weapons when you mount up. That’s really nice!

But the third random perk generally allows you to detect caches and resources on a destination. And my shell detects caches on Mercury, the Curse of Osiris patrol zone, which I have not had a reason to revisit since Forsaken launched. In the new Tangled Shore patrol zone, where I expect to spend most of my questing time, I will probably use a legendary quality shell that detects caches there, instead of this exotic one.

So, even my jackpot drops are kind of disappointing. This is really indicative of the continuing problems of Destiny 2’s Eververse systems. With the new bounties, the Prismatic Matrix and improved events after the intense backlash to last year’s Christmas cash-in, Bungie has been slowly improving the amount of loot it awards to players who don’t want to pay, and giving players who pay a bit more control over what they get — if they have the patience to wait for the item they want to show up in the Matrix or the Bright Dust inventory.

But incremental changes haven’t been enough to change the fact that the Eververse is a rip-off. Bungie is charging too much for loot that is difficult to get excited about. And if they want to earn back player goodwill, they need to completely restructure loot to bring the value in line with the cost, perhaps by removing all legendary accessories and armor sets from their loot boxes, or by just cutting the price of the damn things by about half.

TLDR: Don’t buy these boxes

If you like Destiny cosmetics, earn your free weekly Bright Engrams, use your bounty notes to collect more dust and buy your favorite item off the list when it pops up in Tess’s weekly inventory.

If there are a couple of items you really want, gambling on the Prismatic Matrix is a better deal than buying boxes; since the Matrix is a knockout list, you should be able to get everything on it for $18, after knocking out one item with the free weekly roll. That’s very expensive for something like an emote, but it’s a lot cheaper than finding that specific item in a Bright Engram, which could cost hundreds of dollars.

If you love this stuff and want all of it, at least now you know what you’re getting into, and how much it will cost.

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Economy keeps pumping, but now the Fed wants to let out some air

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Bloomberg News/Landov

Inflation is rising and putting pressure on the Federal Reserve to raise interest rates.

The cost of borrowing money in the U.S. is going up this week thanks to the Federal Reserve — and
a pumped-up economy.

The central bank on Wednesday is all but certain to lift a key short-term interest rate to a range of 2% to 2.25%, putting it at the highest level in a decade. Many loans for things such as mortgages and autos are tied to the so-called fed funds rate.

The Fed has been steadily raising rates to keep the U.S. from growing so fast that inflation gets out of hand. There’s more of a danger of that now, even if just a small one, with the economy expanding at a rapid pace and inflation hitting the highest level in six years.

Read: This government loan forgiveness program has rejected 99% of borrowers

The news on the economy has been so good, in fact, that the Dow Jones Industrial Average

DJIA, +0.32%

and the S&P 500

SPX, -0.04%

both busted through to fresh all-time highs last week. Investors have decided to ignore an escalating trade fight between the U.S. and China because corporate earnings are so strong.

“Markets care more about profits than politics,” strategists at the investment firm Voya Global Perspectives told clients.

Also Read: Repatriated profits total $465 billion after Trump tax cuts

A barrage of reports this week on the health of the economy are likely to underscore precisely why the Fed is taking out some insurance, so to speak. Chief among them are business investment, consumer spending and inflation.

Taking advantage of the first corporate tax cuts in 31 years and a Trump administration push to roll back regulations, businesses have opened the spigots on investment.

A proxy for how much companies are investing, known as core capital-goods orders, has climbed almost 9% in the past year. By contrast, these orders were mostly low or outright negative from 2012 to 2016.

The latest read on investment included in August orders for durable goods is expected to be weak, but it might just be a blip. Investment surged over the summer and is due for a breather.

Also Read: Hurricane Florence pushes jobless claims down to new 49-year low

Consumer spending, meanwhile, is forecast to show a solid gain in August. Ditto for incomes.

Want to know why the economy has strengthened considerably? That’s why. More people are working than ever and now they’re earning better pay, creating a virtuous cycle that keeps the economy expanding.

“The U.S. economy is in a good place right now,” said Scott Anderson, chief economist of Bank of the West.

It certainly is — except for the small matter of rising inflation.

From being almost virtually zero a few years ago, inflation has climbed to nearly 3% yearly pace based on the consumer price index. The Fed’s preferred PCE index has risen by a somewhat smaller 2.3% in the past year, but that’s still above the central bank’s 2% target.

The PCE inflation index is forecast to rise slightly in August, keeping inflation at or above the 2% trendline.

Though still quite low by historical standards, inflation could rise even further in the months ahead.

The U.S. labor market is so tight companies are being forced to boost pay to attract new workers, for one thing. The cost of critical raw materials such lumber have also been inflated by tariffs or strong demand. And just finding enough truckers to transport goods has become a costly headache.

If that happens, the Fed is going to step harder on the gas pedal.

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Bruce Flatt of Brookfield on owning the backbone of the global economy

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It is a windy Tuesday in London and from a Canary Wharf skyscraper, Bruce Flatt, chief executive of Brookfield Asset Management, surveys a corner of his global empire.

Close by is Newfoundland, 62-storeys of homes for rent beside the Thames. In the distance, nestled among City of London towers, is 100 Bishopsgate, a 37-floor office building under construction. To the right, in fashionable Shoreditch, the 50-storey residential Principal Tower is taking shape.

What about the West End, which is studded with cranes? No, nothing there is big enough for Brookfield. “The sites are small and our advantage is scale,” says Mr Flatt.

Toronto-based Brookfield keeps a low profile but its scale is vast. In 20 years under Mr Flatt, it has become one of the largest real estate and infrastructure investors, with a footprint in 35 countries.

On the scale of its $285bn portfolio, even Canary Wharf, which Brookfield bought with Qatar’s sovereign wealth fund for £2.6bn three years ago, looks small. In just one of Brookfield’s megadeals this year, it took the US mall operator GGP private for $15bn. Many countries are too small to have any assets worth Brookfield’s time. “We paid nearly $12bn for a real estate company [Forest City Realty Trust] in the US. Some countries, their entire investment stack is not $12bn,” says Mr Flatt.

Now, Mr Flatt is on a mission to acquire infrastructure, with Brookfield at the centre of a global shift as indebted governments transfer assets to the private sector.

“We’re in a 50-year transformation of the infrastructure world. We’re 10 years in; we have 40 left to go. By the end of that 50 years most infrastructure in the world will be transferred to private hands,” he says. 

A rough calculation indicates that about $100tn could go private over that 50 years, Mr Flatt says, adding that only “maybe 10 per cent” has transferred. In developing countries, existing assets are being sold; in developing markets, new infrastructure is being built by the private sector. That is a huge opportunity for Brookfield, he believes. 

“We’re in the business of owning the backbone of the global economy. [But] what we do is behind the scenes. Nobody knows we’re there, and we provide critical infrastructure to people that somebody pays a small amount for . . . the road you drive on, most people think it’s owned by the government. Even if it is a toll road, they wouldn’t actually know who owned it,” says Mr Flatt.

Brookfield bought Canary Wharf in 2015
Brookfield bought Canary Wharf in 2015

At first sight, billionaire Mr Flatt appears understated: a pale figure in a suit and sober tie. As with his company, though, his discretion belies immense ambition. Overall, he expects group assets to double to between $500bn and $600bn in five to 10 years, including more than $100bn in India and China.

Mr Flatt began his career at Canadian conglomerate Brascan. It foundered in the early 1990s, forcing a fire sale. Mr Flatt bought stock cheaply and helped rebuild it. The collapse of Olympia & York — a Canadian company felled by losses on Canary Wharf, where we now sit — gave an opportunity to acquire prime US real estate assets through buying its debt.

Brookfield did not buy Canary Wharf itself until 2015, but the Olympia & York assets formed the core of a new real estate division: Mr Flatt was on the road to taking control of Brascan and turning it into Brookfield. In a complex structure, the parent company has four listed affiliates handling property, renewables, infrastructure and private equity.

Buying where there is distress, whether companies or countries, remains Brookfield’s hallmark. “There’s a lot of stress in the banking market in India . . . and we’ve been finding the opportunity to buy virtually in all of our sectors [there]. Over the past 36 months . . . there was an enormous void of foreign direct investment into Brazil, therefore we bought a lot of things at what we deemed to be fractions of the replacement cost,” says Mr Flatt.

In Brazil, for example, a consortium led by Brookfield bought a gas pipeline network from state-run Petrobras for $5.2bn.

Mr Flatt admits that Brookfield has made mistakes, including in its early years on projects in the US and Australia. Volatile currencies in emerging markets such as Brazil are also a risk. “If you earn a 35 per cent IRR [internal rate of return] but you lost 35 per cent on the currency, you got zero,” he says.

This year in the US, home to half the group’s assets, Brookfield’s private equity division bought Westinghouse Electric, the nuclear services company, out of bankruptcy for $4bn; the group took control of two subsidiaries of the bankrupt solar group SunEdison for $1.4bn. Last month it struck a deal for control of 666 Fifth Avenue, the Manhattan tower owned by the Kushner family, now represented in the White House by Jared Kushner, son-in-law of US president Donald Trump.

Mr Flatt deflects questions about the chance of success for Mr Trump’s $1.5tn infrastructure programme. “Not much is happening in infrastructure in the US,” he says deftly.

Brookfield bought two subsidiaries of SunEdison this year
Brookfield bought two subsidiaries of SunEdison this year

He would not say whether infrastructure is a bigger opportunity than real estate: “It is like [asking] which of your children you like better.”

Brookfield was overtaken three years ago by Blackstone as the world’s largest real estate investor. The arch-rivals must now hunt for property assets in a late-cycle environment, following almost a decade of rising prices.

GGP, the mall group of which Brookfield already owned a third, was under pressure as the crisis in the retail sector hit demand for physical stores. “We don’t buy into the thesis that all retail is going to go online,” says Mr Flatt. The GGP purchase is primarily a redevelopment play, he says, “concentrating these shopping centres with apartments and all these other things”.

Is Brookfield preparing for a crash? “We’re almost 10 years into a recovery, which means that the recovery or the expansion may last for one year, two years, three years, four years more. Four years would be maybe a record . . .[so], just because we’re very conservative people, our view is we should hold more cash, be more conservative,” says Mr Flatt.

He recalls 2007 when Brookfield “began preparing” for a downturn. Brookfield is once again increasing its cash holdings. At the end of June, in its latest results, Brookfield Asset Management held almost $6bn of cash and equivalents, almost double the figure at the end of 2016. 

“It’s when enormous dislocations happen and you can buy, and the only way one can do that is be prepared,” he says. “I wouldn’t want this to come across that we’re preparing for Armageddon.”

The 'Tribute in Light', a memorial to the World Trade Center towers
The ‘Tribute in Light’, a memorial to the World Trade Center towers

Mr Flatt is understandably reluctant to compare a potential downturn with the financial crisis of 2008. But September 11, the day we meet, marks a different disaster. By the time of the 9/11 attacks in 2001, Brookfield owned the World Financial Center, now Brookfield Place, across the street from the Twin Towers, along with One Liberty Plaza next to the World Trade Center.

Mr Flatt was in Toronto when the attacks occurred. With flights grounded, he drove for 10 hours to reach Manhattan. “I got there September 12 at 1am and went downtown. We didn’t know whether our people were OK. Only later did we find that out,” he recalls.

The glass in Brookfield’s buildings shattered up to 30 storeys; there were fears that One Liberty Plaza could collapse. However, Brookfield found that all its staff had survived and the buildings reopened two months later.

Initially many employees were too traumatised to return. “I, in fact, was the only person I think down there two months later on my phone, phoning people . . .[who] came back slowly. Today, leaving aside the whole tragedy, the remake of Lower Manhattan was enabled because of the tragedy,” he says.

The following year, Mr Flatt became chief executive. What did this experience teach him? He pauses before concluding: “Make sure you’re at the wheel.”

CV

Born 1965

Pay $6.84m

Education 1986: University of Manitoba, bachelor of commerce

Career 1987: Chartered accountant, EY
1990: Corporate finance, Brascan (predecessor of Brookfield Asset Management)
1993: Chief financial officer, Brookfield Properties
1998: President and chief executive, Brookfield Properties
2002: Senior managing partner and chief executive, Brookfield Asset Management

Brookfield Asset Management

Founded Traces roots to 1899

Assets $285bn

Employees 1,500

Headquarters Toronto

Ownership Publicly traded on NYSE and TSX; Partners have ownership of 20%

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Despite the economic recovery, student debtors' 'monster in the closet' has only worsened

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In many ways, Daniel Strong is happy with his life. He owns a three-bedroom ranch-style house in Charlottesville, Virginia, where he lives with his wife and 3-year-old son, Benjamin. He recently made the last payment on his silver, Toyota Tacoma. He likes his job.

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But there’s one problem that won’t go away.

Strong and his wife owe more than $350,000 for their bachelor’s and master’s degrees.

“The huge monster in the closet for me are these student loans that keep getting bigger and bigger,” said Strong, 36. When they graduated, they were faced with monthly bills of around $800 each and have since struggled to keep up.

“It’s so stressful to think about the fact that you’re probably going to have to work until you drop dead at work because of your student loans,” Strong said.

Ten years after the 2008 financial crisis, there are headlines of record low unemployment and a booming economy. Yet one area has only worsened over the decade and threatens that recovery: student debt. Average debt at graduation is currently around $30,000, up from $10,000 in the early 1990s. The country’s outstanding student loan balance is projected to swell to $2 trillion by 2022, and experts say a large portion of it is unlikely to ever be repaid; nearly a quarter of student loan borrowers are currently in a state of delinquency or default. Because of these loans, many Americans are unable to buy houses and cars, start businesses and families, save or invest.

Borrowing is unlikely to slow any time soon, as the cost of an education in this country is only rising. State funding for public colleges fell by $9 billion between 2008 and 2017, and schools have filled the gap with tuition hikes. Last year, for the first time, half of all states relied more heavily on tuition than on government appropriations to fund higher public education. On average, Americans now spend $30,000 per student a year, twice as much as the average developed country.

Has the student loan market become a bubble? That’s a fair question, said Barmak Nassirian, director of federal relations at the American Association of State Colleges and Universities.

“Cost escalation, which would normally be met with consumer resistance, is being facilitated by the easy availability of credit,” Nassirian said. “It’s disturbingly similar to what happened to tank the mortgage market.”

In his mid-50s, Claude Richardson returned to college in the hopes of finding himself a new career. He attended two for-profit schools — the University of Phoenix online, and the New England Institute of Art. He said the education at both schools proved disappointing, and he never found a job in his field of study, information technology.

Instead, the 65-year-old man works 60 hours a week as a driver for a transportation company. He makes $8 an hour. He can’t remember the last time he took a vacation. He doesn’t pay for cable, since he has no free time to relax in front of a television.

He feels helpless when he looks at his student loan balance of more than $160,000. He has defaulted multiple times. “If I could pay, I would,” Richardson said.

The student loan default rate more than doubled between 2003 and 2011, according to Education Department data. Forty percent of student borrowers are expected to default on their loans by 2023, according to the Brookings Institute.

“There’s over 8 million people who are currently in default on their federal loans — it continues to be a large number, despite other improvements in the economy,” said Persis Yu, director of the Student Loan Borrower Assistance Project at the National Consumer Law Center, a nonprofit advocacy group.

In a recent study, two researchers sought to understand why the student loan default rate has risen so sharply. Half of the uptick, they found, could be explained by the simultaneous rise in nontraditional students, like Richardson — or those who attended for-profit institutions. Many for-profit colleges have come under scrutiny for their high costs and poor outcomes, and half of their student loan borrowers default.

The share of nontraditional students rose by 17 percent from 2006 to 2009. Meanwhile, the percentage of federal financial aid going to for-profit colleges nearly doubled between 1996 and 2012. Today, these schools take in around 15 percent of the government’s financial aid, down from a high of 19 percent.

“Predatory colleges target the same low-income populations that the subprime mortgage boom targeted by offering a similar promise of white picket fences and higher education as part of the American middle class dream,” Toby Merrill, director of the Harvard Law School’s Project on Predatory Student Lending, said in a recent interview.

The Obama administration cracked down on for-profit schools, but the Education Department under President Donald Trump has taken a friendlier approach. The current administration’s proposals include making it harder for former students who claim they’ve been defrauded by their schools to get their debt canceled and relaxing the standards for-profit schools must meet to keep their federal funding.

The result of rolling back rules meant to protect borrowers and drive better value is predictable, said James Kvaal, president of The Institute for College Access & Success. “Defaults will go up,” he said.

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Schools of questionable quality are hardly the only problem driving the rise in defaults. Also to blame is an unfortunate confluence of rising tuition and wage stagnation, said Mark Kantrowitz, publisher of SavingForCollege.com.

“Family income has been flat, so their ability to pay for college has not changed even as college costs have increased,” he said. As a result, more families take on loans to cover the bills.

“Starting salaries have not grown as fast as average debt at graduation,” he said. “This causes debt-to-income ratios to increase, a sign that more borrowers are graduating with more debt than they can easily afford to repay.”

Colette Simone borrowed $200,000 in private and federal loans to attain her doctorate degree at the Michigan School of Professional Psychology in the early 2000s.

After graduation, her student loan bill was around $1,600. She tried to make those payments, but with entry level salaries it was difficult. She repeatedly postponed the loan payments, causing the balance to grow even more, thanks to interest. At one point, her bill was as high as $5,000 a month. She eventually stopped paying her private loans. “They wouldn’t negotiate beyond a certain amount,” Simone said, “which I didn’t have.”

She has paid around $90,000 of the debt by now, but it has ballooned to more than $400,000. The 65-year-old woman fears the government will soon garnish a portion of her Social Security.

She says the whole ordeal has left her disillusioned with the country. “If you want to get ahead, you have to go into debt,” Simone said. “And then the whole debt structure is rigged to make sure you’re never going to get out of it.”

Many student loan borrowers today express resentment and distrust toward their lenders and the companies that administer federal loan programs.

A recent government report found that some schools hire companies that don’t present student loan borrowers with their best options. Meanwhile, one of the largest student loan servicers — Navient, is being sued by five states and the Consumer Financial Protection Bureau for allegedly misleading borrowers. The bureau accuses Navient of steering struggling borrowers toward multiple postponements of their loans instead of into income-driven repayment plans, which cap monthly payments at a percentage of the borrower’s income. (Navient disputes all allegations.)

“Navient’s conduct is estimated to have added $4 billion to the national student loan debt,” said Attorney General Jim Hood of Mississippi, one of the states suing the loan servicer. “Students are the future of our state, and the presence of companies in Mississippi that knowingly take advantage of students who need the money to continue their education will not be allowed under my watch.”

National Consumer Law Center’s Yu said the distrust borrowers express is often well-founded.

“Servicing issues is something that is very much similar to the mortgage crisis,” Yu said. “In both circumstances we have consumers getting bad information.”

There is some math that haunts Dallas Benson, a 48-year-old mother of two.

The monthly rent for her two-bedroom house in Zebulon, North Carolina, is around $1,100. She has lived there for just four years, and has already paid her landlord about $50,000. She recently checked the home’s value: it’s only worth about $100,000. “It’s heart-breaking,” Benson said. “If that could have gone into me owning the house, life would be incredibly different.”

But with $600,000 in student loans, finding a landlord who would rent to her was hard. Benson and her ex-husband’s student debt, which started at around $150,000 in the 1990s, has ballooned from interest and late fees. She studied sociology at the University of Texas at San Antonio and now is a government property manager.

The massive debt has pushed her credit score down to the low 400s. (The lowest possible score is 300). And it has harmed more than just her chances at home-ownership, she said.

“Buying a car is too difficult. I have nothing saved up for retirement at all,” Benson said. “I look to the future, and I feel like I’m going to be that 80-year-old woman saying ‘Hi, welcome to Walmart.'”

The damage of the financial crisis in 2008 reverberated across financial institutions and triggered the failure of major banks. The damage of student debt is more personal and insidious, said Constantine Yannelis, assistant professor of finance at the University of Chicago’s Booth School of Business.

“The fact that we’re not going to have a Lehman Brothers’ moment doesn’t mean that there aren’t tremendously important effects of student debt on the broader, macro economy and on growth,” Yannelis said.

Earlier this year Federal Reserve Chairman Jerome Powell said, “as student loans continue to grow and become larger and larger, … it absolutely could hold back growth.”

A growing body of research examines how student debt hinders people financially. A recent analysis by the Urban Institute found that a 1 percent increase in student debt decreases the likelihood of owning a house by 15 percentage points. As student debt rises, young entrepreneurship is also falling. By the time college graduates reach age 30, the ones without student loans are predicted to have double the amount saved for retirement as those with them, according to a study by the Center for Retirement Research at Boston College.

“This goes beyond the simple matter of family finances for a small subset of the population,” said Nassirian, at the American Association of State Colleges and Universities. “It’s going to be very consequential for the future of the country.”

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