Generation Debt: The Student Loan & Wider College Rackets

Questions for students and their parents:  If college cost $750,000, would you still attend, taking out student loans to meet that amount?  How about $500,000?  No?  How about the $50,000 to $250,000 it currently costs, then?  In other words, what is the true price tag for ‘ensuring success’ in society, and why has it been rising so aggressively over the past 50 years?  In turn, what are the actual – versus perceived – dividends of such an “investment”?  In this episode of Money and Fear, we’ll look at the impending Student Debt Crisis and dissipating perceptions of college as an inimitable personal and economic resource.  The size and pace of student loan growth mirrors that of the subprime mortgage fiasco of the prior decade.  We’ll look at how and why while also bluntly asking if college is ‘relevant’ anymore.  We’ll review figures, causes and effects behind this seemingly unfixable economic dilemma, which threatens the nation’s collective solvency and prosperity.

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Show Notes

A Look at the Shocking Student Loan Debt Statistics for 2017

Student Loan Debt In 2017: A $1.3 Trillion Crisis

The US college debt bubble is becoming dangerous

The student debt crisis is worsening at the hands of loan servicers

A New Culprit In The Student Loan Crisis: The Housing Collapse

Is Higher Education A Giant Pyramid Scheme?

College Debt: Necessary Evil or Ponzi Scheme?

Higher Education Is a Giant Ponzi Scheme

Student Loans and Ponzi FinanceAmerica Has Had Enough of Cars and College

Citi just drew an 'eerily reminiscent' parallel between student loans and the subprime mortgage crisis

The economic side effects of the student loan crisis (in 3 charts)

How Student Loans Are Crushing Millennial Entrepreneurialism

5 Solutions We Desperately Need to Solve the Student Loan Crisis

Default rates highlight growing student loan crisis

The student loan crisis is fueled by a weak labor market

Four Reasons Why College Degrees Are Becoming Useless

More Parents Finally Get That College Is A Scam

Seven Reasons Not to Send Your Kids to College

Text #1:  Excellent Sheep:  The Miseducation of the American Elite and the Way to a Meaningful Life by William Deresiewicz

 Text #2:  Weapons of Mass Instruction by John Taylor Gatto

 *For additional footnotes and links refer to the Newsbud article link above

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Comments

  1. Right to the root of the problem.
    Thank you so much.
    BTW I’m personally already on it. The concept is young (4 months and no infrastructure) but its growing slowly. When it achieves self-sustainability and goes public I’ll send you some info if you are interested.

  2. Michael Naaden says:

    When I paid off my College loans…Did a dance of a thousand coffees. Also, my liberal arts degree…taught me to think, and that is why I’m here at NewsBud.

    • spiro skouras says:

      Hi Michael,
      We are very happy to have you and all of the others be apart of the Newsbud Community, We have been through a lot over the past year but I have to say things are really coming together nicely. Don’t get me wrong there is still tons of work to do… But at this point we are able to offer exclusive content pretty much on a daily basis for all of you. Plus Sibel is finally able to get back in the game as far as producing articles and videos, she has been taking on so many tasks behind the scenes. Granted I may be bias, but I was looking at some of the other sites that offer subscriptions, and I have to say Newsbud sure does offer a whole lot for not very much, unmatched in my opinion! None of this would be possible without the support from all of you! Thank you all so much and I hope you enjoy our newest show Money & Fear with the brilliant Pye Ian.
      Spiro

    • Thank you greatly, Michael! Congrats on being paid off. You too are then well poised to teach others…

  3. victor friese says:

    Huh, I graduated in 2008 and easily spent 25 hours per week outside of class studying and doing school work. I remeber one art project I spent 70 hours on in a single week toward the end of one semester.

    Of course, I had no job past the first couple years of school. Most people cannot juggle a full time course load AND a job, especially given transit times without that unaffordable monstrosity called the automobile.

    How will this play out though? The only way I can see it working is to punish the schools for wasting people’s time and money by raiding their multi hundred million dollar slush funds and billion dollar + endowments. Most of this increased income is spent on the dumbest and vainest of things BY THE SCHOOLS THEMSELVES.

    Or are they just going to make tens of millions permanent debt peons?

    I wonder how long till someone writes a worm to slowly corrupt and eat away at the debt data until it can no longer be collected on? This has the potential to cause a great deal of national instability.

  4. John Phillips says:

    Pye;
    Excellent work, but most disturbing with respect to the “Catch 22” students today face. I think the question is not “if I can afford a college education,” but one of “do I have a choice?” The ramifications of not having an advanced degree are staggering! As you mention, there is no guarantee of a good college education with the standards falling and the curriculums being watered down. Not to mention the caliber of education of student leaving public schools and trying to compete in college.

    But what skills will young people of today have to defend themselves if they do not! All students must make the best of the education they can afford; whether through a community college, pay via grants programs, etc.. Part of the decision making process that college students must go through is the financial equation. Part of the equation that must be addressed, as I did at 18, was…do I want to look back at my life and realize I wasted my most excellent brain! Is the question of work, career or one of intellect? It’s the answer to those questions that will propel a student to success.

    Students must make the best of what education they can obtain; including going beyond the curriculum into self-education…which should proceed throughout life. If one depends on schools to instill critical thinking…one is missing out on the intellectual atmosphere offered at most college campuses that goes beyond the curriculum which further develops critical thinking skills. Parents must help their children develop critical thinking skills and not leave it to schools! All of us should question.

    Without a college education; one cannot be expected to defend themselves, in writing, verbally or intellectually in any real manner. How is one to face off with corporate and bureaucratic entities of today if one can’t think critically or write a mean-ass letter to their Congressman or Senator, health insurance company or any other adversary one should face. How will the next generation participate in political discourse?

    Yes, what is happening in advanced education is designed to further limit the common Joe and Jane from attaining education and critical thinking skills while perpetuating the best education for elites! To fight this trend….the investment in education is a must!

    If one only focuses on “work” or “career” when assessing the need for education; one maybe missing the most important basic need for education…
    it’s called “SURVIVIAL.”

    The “Catch 22″…how not to go into debt while obtaining the education needed to survive in the 21st century?

    Keep thinking and don’t “believe.”
    Best Regards

    • David E Burden says:

      John,
      I can’t disagree with most of what you are saying, but there are exceptions. For example, I have encountered many people with good degrees from prestigious schools, who were barely functional in the real world. In my neck of the woods we call them “Educated Idiots”. A lot of them seem to go into politics. On the other end of the spectrum, I have seen numerous home schooled young people who’s intelligence levels, and critical reasoning skills, rival,and often exceed, most average four year college graduates And they haven’t even attended college yet.
      I quit regular government school at the age of 15. Then I tested out of high school and was emancipated at 16. I was simply bored in regular school, and wasn’t learning anything much, and I love learning. I went to several trade schools simultaneously while working part-time, graduating all 3 of the first ones at the same time. I later attended a couple more trade schools, but did those part time while working a full time job.
      I also attended a state university in my early twenties, (Life Sciences), and worked in the Emergency Medical field for some years. Then I switched over to Law Enforcement and needed to go back to school again if I ever wanted to advance very far. So, back to school I go. This time it was at a smaller community college which was affiliated and supported by a large Private University, for my Criminal Justice studies.
      Having no choice in the matter, I was working a full time job, and two part time jobs while carrying 16 credit hours of classes continually. It is fortunate that I am a fast learner with an excellent memory, I’m one of the rare, lucky ones. I learn with minimal effort, but that is not the point I’m trying to convey here. The point is that I never took out a single student loan. It did take longer, but it can be done even if your parents aren’t rich. I can see that this would be a lot harder in today’s market than when I did it. I started in the mid 1970s, and graduated my last brick & mortar college in 1995. Can that be done today? I don’t honestly know. Therefore I choose to rely on the advice of an expert, and thankfully Newsbud has one.
      As Pye pointed out, the costs of going to college have been greatly inflated now, and I suspect most of that is artificial and does not add to the quality of the education. There is also a huge difference between being educated, and being programmed. Therefore, I find his questions and statistics to be prescient at this time. Parents and potential college students alike would do well to heed his advice.
      I worked the entire time I was attending schools, spent all that time & money, and when I finally decided that I was never going to be allowed to do my job the way the powers that shouldn’t be, portray it to the general public, I quit my “Cop Habit” and started driving semi trucks over-the-road for a living. My pay went up approximately $19,000.00 per year, and my stress level dropped to nearly zero. I had more fun, and made more money, than I ever did using any and/or all of the differing educations. It is NOT mandatory for people to go to college in order to make a good living and have a good life. Furthermore, all to often those pie in the sky dreams turn out to be just that.
      I represented myself in court at the age of 15, and have done so many times over the years, successfully. Further, when the judge emancipated me at the age of 16, he asked me if I intended to go to law school and become an attorney. I told him that I hoped to do either that, or to go to medical school and be a doctor. Neither of those dreams was to be though. Poor kids just don’t get those opportunities. At least not very often. That judge was a good man, (I wish we had more like him now), and after my first appearance before him, when he made me a “Ward of the Court” and told me I would have to attend school until I graduated high school, or until I turned twenty one. Which ever came first. He told me, upon my inquiry, that in order to take a GED Test, (to skip high school and thereby escape his jurisdiction), I would have to wait until the age of eighteen. With one exception. He informed me that I could petition the Governor of the state, and apply for a waiver to take the GED Test earlier if I followed certain steps, and got enough recommendations. I did, and got the waiver. Evidently he was impressed enough that he also wrote to the Governor on my behalf. So to say that “one can’t think critically or write a mean-ass letter to their Congressman or Senator” without a college degree is simply not always true.
      If a person WANTS to LEARN, they will find a way. College is not for everyone. And hey, there are a lot of trucks needing drivers, and a lot of goods needing delivered.
      Sincerely,
      Stronghorse

      • Great conversation here, all, and glad to see our community really ‘getting it’.

        Anything seemingly ‘worth having’ will be exploited via an aggressive debt issuance process nowadays, it seems. Be it a home, a car, or certainly an “education”. Meanwhile, talented coders brag about dropping out of school, and said fact ups their personal branding to firms. Peter Thiel & others are paying talented kids to *avoid* college. Et al….

        Please share the full video above and keep the conversation going. Genuinely being viably informed nowadays – about anything, let alone the insidious nature of usurious, compounding debt – is an Act of Revolt.

      • John Phillips says:

        David,
        “If a person WANTS to LEARN, they will find a way.” Yes, yes, yes! Obtaining the education is the key goal. Sorry I got hung-up on the “college” term. As with you, skills development is incredibly important in order to provide for and defend one’s self and family. Education and skills provide opportunity and options for individuals to find meaningful employment or a way of life. We know how to teach, but the public school system seems willing to only teach to the level of a Wally-World greater. A poor start for most.

        So, the question comes down to “how to obtain the skills and education that is needed to be successful in life?” “Successful” meaning; survival in the world today. Often it comes down to the individual and one’s personal drive.
        Best Regards

  5. The US may indeed be at the leading edge of this development. Because the US admin does not have a sole judgement right, the prime actors are to be found elsewhere. This type of debt will certainly not result in critical minds who will act responsibly in (supra)government or in corporations. Pitt these twi steer law formation and enforce their law. It is pure fascism, it is the ‘american dream’ of a few who only live to make money: bourgeoisie or simply the political religion of egotism that Berkeley students should not discuss.

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