Slashdot Mirror
US Student Loans Exceed $1 Trillion
sycodon writes "Politico reports that student loan debt now exceeds one trillion dollars, an amount that should impress even Dr. Evil. Politico further reports that this is one of the more concrete issues driving the OWS protests and provides some enlightening examples of their particular gripes."
Anyone that still believes that America's colleges and universities are "non-profit" institutions, should think again at this. For two of the most obvious examples, I cite you the "Bowl Championship Series" and most college sports in general (namely football and basketball), as well as the fact that student dormitories and student unions have largely been turned into country clubs, with just about every one of them having a Starbucks (heck, that's in the library now, too), and having such amenities as rock climbing walls, gyms with workout equipment that rival Gold's Gym, and many schools are giving every student their own iPad these days. Plus, when most schools in Division I pay their football or basketball coach twenty times the salary of the average professor, and four times the salary of the university president, you know something's fouled up,. . .
I have a hard time sympathizing with anyone who has voluntarily taken on large amounts of debt
With almost any decent job these days requiring a 4-year college degree, what the hell do you expect? Unless your parents are upper-class or have had the foresight to save up the money (with no intervening crises to eat it up), your only hope to get anything better than slave wages at some manufacturing plant (that's probably going to China at any minute) is to get a highly-competitive scholarship or take out a student loan. And there are only so many scholarships to go around.
SJW: Someone who has run out of real oppression, and has to fake it.
Since 1970, minimum wage has on average gone up about 300%. College tuition has gone up 994% (from 1200 a year at a public university to shy of 12000 a year). The cost of purchasing a home has gone up over 900% as well. Let's also not forget that every dollar is worth less, and when factoring in inflation and the consumer price index, minimum wage earners are making a good deal less than they did in 1970. Factor in that in the same timespan uneducated labor jobs have dropped by close to 70% in the US. So, people have no choice but to go to college, even the people who really shouldn't go, lest they live in poverty. They get no scholarships because they "just barely" managed to get in. They get a degree, and then can't find work. Working your way through school is now impossible with a minimum wage job, since, you're looking at 35 hours a week at minimum wage to be able to afford only tuition - that doesn't include books or board. In 1970, people were looking at 14 hours a week to be able to pay for school. This math also points out that its idiotic when baby boomers say, "people should work through college, that's what I did" because times are completely different. And as parent said, things are only going to get worse.
A resourceful person could do the equivalent of a college education for just the cost of an internet connection (or at the library for free).
That's true. But when's the last time you saw "4-year degree or equivalent do-it-yourself degree" listed as a job prerequisite for a white collar job?
SJW: Someone who has run out of real oppression, and has to fake it.
I wont be the first or last to say it, but I have a hard time sympathizing with anyone who has voluntarily taken on large amounts of debt and doesn't understand that they made a poor choice.
OK, let me get this straight:
1. Don't go to college, can't find a job. Poor choice.
2. Go to college, can't find a job. Poor choice.
What we have here are a bunch of people willing to work, but the market is unable to find work for them. You blame the people, when the market is what's causing the problem.
First, there is usury. Student loans are unsecured, but federally backed. There is very low risk to the bank. Yet interest rates charged tend to reflect that of high risk loans. Further, while payments are deferred, interest isn't. Not all of this is fully disclosed to the borrower. For instance, do all students know that they are payig interest rates comparable to normal loans, yet with normal loans a borrower can default on a loan. With student loans the must must be paid back, and garnishment of wages and other restrictions on one's livelihood are very easy. Unlike most loans, which are regularly renegotiated, the student loan, with exorbitant interest given the level of risk, is not.
Then there is collusion in the defrauding of the american public. Much of the loan money goes to private distance Universities. These Universities are well known for having very high default rates, and are well known for being victims of straw men loans. In any other financial process, the banks would conduct due diligence to minimize exposure. However, as this is a way to transfer taxpayer money to private banks, there is almost no due diligence. The money is handed out. Banks know or should know the forms are fraudulent. There was one reported case of many forms asking for money to the same address. However, as there is no real risk, and it free money for the bank, no such diligence is performed and banks happily take tax payer money. Unfortunately, all risk and blame is placed on the university and student. While this is appropriate, more blame must be placed on the people who are fundamentally profiting from the fraud. The bankers.
"She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
Classic American blame-the-victim ideology. You've been taught all your life that success or failure is based primarily on personal, rather than environmental/social factors. So of course, to you, the fault lies in the people taking loans and unable to find jobs, and not in the perfect "free-market" that has no entry-level jobs for college graduates.
This is almost true. There are some problems with your post, though.
"Educators will tell you that perhaps college should be reserved for those with the ability and initiative to do the work. Not everyone is ready for a college education, or able to engage in the rigorous critical thinking required. That's not popular with the salespeople, who want to sell college to everyone."
The 'salespeople' here are our government, trying to sell hope that even though they encourage industry to move offshore, there is a way for everyone to live happy fruitful lives. Education was that way. And it's necessary now; after all, to get a decent white-collar job now you need 'a degree'. It doesn't have to be related to your job. Jobs available (if you don't have a degree) will ensure that you live in poverty and die early.
"High school is now four years of day care because those teachers figure the kids will really learn to spell in college."
No. High school is now daycare because both parents now have to work to survive and NEED DAY CARE. Teachers are now expected to raise kids, but aren't allowed to punish them. Parents freak when 'little johnny' fails, and rather than take responsibility, they blame the teachers for their kids lack of effort - even though teachers have little or no power to make the kids do ANYTHING.
"When they cheapen those, too, we're going to have to cut out the middleman and bribe our way into careers."
Yes. Only the upper classes will be able to do this too. Oligarchy becomes permanent and the American Dream dies. A permanent, desperate underclass that will work like slaves for almost nothing will be available, and America will finally become 'competitive' with the third world. By becoming a third-world nation.
Paranoia is a Survival Trait!
Over the past few years, the conservative view has been getting more press, and that's changed slightly.
YOUR success is based on personal factors. YOUR failure is blamed on external factors.
OTHER people's success is based on external factors (dumb luck, handouts). OTHER people's failures is blamed on personal factors (lazy, greedy).
You're dead-on regarding the external factors changing dramatically. People have just been taught to take the blame. When the housing market blew up, there were no rally cries to lynch the underwriters who forged the paperwork. Instead, the public was taught that their own personal greed was the root of the problem.