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Student Loans: A Silent Scandal No More
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Student loans, long a nonissue that ruined countless lives, have finally become a political flashpoint in the conflict between progressive and moderate Democrats. Yielding to lefties’ pressure after Sen. Joe Manchin torpedoed Build Back Better, President Joe Biden has extended former President Donald Trump’s pandemic relief to 43 million federal borrowers by pausing payments another three months, to May 1.

The issue isn’t going away: 62% of Democratic and 57% of Republican voters age 18 to 29 told a Harvard Institute of Politics poll that student loan debt is a major problem — a problem they think about when they pay their bills every month.

Left-leaning lawmakers want to go far beyond Biden’s stopgap extension as well as his long-forgotten campaign promise to cancel \$10,000 of debt per borrower. (The average ex-student owes \$37,000 in federal loans.) Chuck Schumer, Elizabeth Warren and Ayanna Pressley propose to wipe out \$50,000 each; Bernie Sanders and Alexandria Ocasio-Cortez want to forgive all \$1.7 trillion.

A bill proposed by Republican Sen. Marco Rubio would lower interest payments to zero, instead charging a one-time, noncompounding flat fee that student loan borrowers would pay over the term of their loan.

Our higher-education financing system is a scandal.

My grades and test scores were good enough to get into an Ivy League college. I was smart — but I was still a 17-year-old kid. In 1981, I didn’t know you were supposed to tip your barber, that your major field of study might have no bearing on your future career or that Manhattan and Long Island were different places.

So, signing a student loan agreement committing to repay thousands of dollars from a salary derived from some imaginary job in a mysterious future was a surreal experience.

I sat next to my mom in the lobby of the big bank building in downtown Dayton, Ohio, clueless. All I knew was that I had to sign a sheaf of incomprehensible documents if I wanted to attend college. As my guidance counselor and teachers and parents had repeatedly warned, without a college degree I would be doomed to subsistence-level fast-food or manual labor — and factory jobs were getting hard to find.

Don’t forget to initial each page.

How much would I earn after graduation? What would be my monthly payment? How does compound interest work? Was 9% a reasonable rate? When would it begin to accrue? What if I became unemployed? I didn’t know, and if the banker satisfactorily explained this stuff, it didn’t stick to my hippocampus. I invisibly shrugged, hoping that I’d somehow muddle through.

I return to my state of mind 40 years ago whenever I hear someone deplore the ethics of the 15% of student loan borrowers who are in default at any given time. Is an obligation you don’t understand when you agree to it an obligation at all?

Honoring commitments is important. If you borrow money, you should pay it back. (I did.) But lenders have responsibilities, too. As we saw during the subprime mortgage crisis of the late 2000s, the economy suffers when banks recklessly issue loans to borrowers who don’t understand the terms or won’t have enough income or collateral to repay, which is the case for most college loans.

Student loan lending is predicated on the assumption that graduates will be able to pay back what they owe, plus compound interest, out of the higher income they will earn compared to nongraduates. But 57% of student loan borrowers never graduate from college. Most borrowers, therefore, are naive teenagers with bleak job prospects. Lending to them is as predatory as it gets.

Clemency proposals annoy people who already paid their loans, not to mention those who bypassed college rather than go into debt. Why should taxpayers foot the bill for others’ luxurious college education?

For one thing, postsecondary education is no longer optional: 65% of all job postings require a postsecondary education, according to a study by the Georgetown University Center on Education and the Workplace. As long as that’s the case, Americans will believe there’s a common economic interest in cranking out millions of freshly minted graduates.

Canceling student loans across the board would have a low multiplier effect and thus do little to stimulate the economy. But there would still be advantages for everyone, not just borrowers.

Freeing a generation from debt slavery would provide flexibility and capital for new entrepreneurs and allow do-gooders to pursue work in helping professions with low wages. It would add liquidity to the nearly half of millennials who report that their loan debts forced them to delay buying a first home by an average of seven years. You may not have gone to college yourself yet you may get to retire earlier because you’ll sell your home to a young couple at a higher price.

College expenses in the U.S. are too damn high — it’s the most expensive system of higher education in the world after the U.K. on paper — but the U.K.’s are cheaper than ours when adjusted for grants and government-imposed price controls. When half of American borrowers continue to owe an average of \$20,000 some 20 years after beginning as a freshman, reform is clearly called for.

One promising development is Secretary of Education Miguel Cardona’s promise to fix broken Bush-era student loan forgiveness programs for those who work in public service, education, health care and social work. Byzantine rules and application processes resulted in only 5,500 out of potentially 1 million qualified applicants getting their loans erased in part due to “miscommunication between the Department of Education and the loan servicers, as well as between the servicers and borrowers,” CNN reported about a 2018 General Accounting Office report. But that’s only a start.

Someday, hopefully, college will be free.

ORDER IT NOW

Until then, college loans need to be reined in. They’re a big business with no inherent limit upon growth. Colleges and universities have raised tuition and other fees faster than inflation because they know that a wide array of loan packages are available to students and parents. Lenders enjoy a fixed interest rate scheme that not only guarantees them a profit over their own borrowing rates but also is low risk since it is virtually impossible to discharge student loans in bankruptcy.

These structural problems can be addressed by reducing lenders’ incentives to lend money willy-nilly and by reining in tuition costs. Congress should cap the maximum amount each student can borrow per year at \$2,500 for those attending community colleges and four-year public universities and \$5,000 for those at private institutions. Bankruptcy courts should be given the option to discharge student loan debts. Any college or university that raises overall tuition, housing and other costs faster than inflation should not qualify for federally subsidized loan payments from their students and ought to lose any federal contracts.

And if it’s really in the public interest for so many millions of young Americans to attend college and university, how does it make sense for educational financing to be a lucrative form of usury?

The federal government ought to take over the lending business from banks, with zero-profit interest fixed at the same rates it pays to holders of Treasury bonds. No one should get rich off the backs of 17-year-old kids seeking to better themselves through education.

Ted Rall (Twitter: @tedrall), the political cartoonist, columnist and graphic novelist, is the author of a new graphic novel about a journalist gone bad, “The Stringer.”

 
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  1. that your major field of study might have no bearing on your future career

    If you have a BS in a hard science , I suspect you have a career and have paid off your student loans.
    If you have a BA in any “studies” subject, then I suspect you are probably not even qualified to work in fast food.

    allow do-gooders to pursue work in helping professions with low wages.

    The nation is better off if the “do-gooders” are kept in debt and working in food service. The “helping” professions usually only help the do-gooder meddling in people’s lives. Unless the “helping” involves a degree in some kind of medical field.

    But some idiot spending \$100,000.00 getting a PhD, making a six figure salary, and working in “helping” or education really doesn’t need my tax money to pay their debts.

  2. Jamie_NYC says:

    What a bunch of nonsense. How about mortgage debt ? Isn’t that a much bigger burden on the working population? Shouldn’t we cancel mortgage debt as well?

    • Agree: RadicalCenter
    • Replies: @Bro43rd
  3. “…..One promising development is Secretary of Education Miguel Cardona’s promise to fix broken Bush-era student loan forgiveness programs for those who work in public service, education, health care and social work…..”

    PROMISING? Are you ‘tarded? Every one of these fields is a NET TAX DRAIN. What’s the matter with you?

    • Agree: Adam Smith
    • Replies: @frontier
  4. anon[374] • Disclaimer says:

    “Honoring commitments is important. If you borrow money, you should pay it back. (I did.)”

    Shut the fuck up. You’re groveling out your ass.

    This is debt peonage.

    Fuck the banks. Fuck the government that baited the debt hook with your right to education. It’s time for a debt strike.

    Your half-assed incrementalist opinions are bad enough. You have to stop prefacing them with these cringing Taibbiesque loyalty oaths, it makes you sound like a contemptible worm.

    • Agree: Ralph B. Seymour
  5. TG says:

    I can solve this “problem” easily.

    1. Go back to what the founders of this republic intended intended, allow non-billionaire working class Americans to declare bankruptcy and get out from under their debts and start fresh. To my so-called conservative friends: so you say that if banks making loans that cannot be repaid end up losing money, they might stop making loans that cannot be repaid… I don’t see this as a problem.

    The essence of capitalism is NOT that debts need to be repaid. The essence of capitalism is that people making bad investments should lose money.

    2. End the disgusting “public-private partnership” scam where banks can loan unlimited money to students and be GUARANTEED of being paid back in full plus profits regardless. Let banks go back to what they are supposed to be doing: evaluating risk. Of course, in that case most banks won’t make \$250,000 in loans to someone studying multicultural basketweaving. So the colleges will have to stop playing that game. Short term there will be pain – all those wonderful associate executive deans for student happiness making \$500K per year might have to like, get real jobs. Cry me a river. Remember that college education is fundamentally no more expensive than it was 50 years ago…

    Of course, eventually there will be all these Indian Nationals here on H1B visas, who didn’t spend (hardly) anything on their education, and they can work for less than a US debt-enslaved student can even afford to… and as the borders are opened, why would a third-world refugee take on a quarter of a million dollars in debt to get a US degree and promise of a green card someday maybe, when they can just walk across the border? Someday this scam is going to run out of steam.

    • Thanks: Jefferson Temple
    • Replies: @Curmudgeon
  6. Franz says:

    Someday, hopefully, college will be free.

    Like why isn’t it now?

    When the USA globalized, it only enriched “consumers” — a mythical creature with no income but an insatiable desire for “cheap foreign goods”. They’re only cheap because the historic American working class built it so well. They worked themselves out of a job.

    It’s not the financial carnage we mind, it’s the bullshit they pretend to believe. Canards like “A state driver’s license is a privilege, not a right.” Try getting work or even a life without one. When they created the auto-based economy, they made owning a car a necessity. A right of a kind. As similar to laws that hanged horse thieves in the good old days.

    Just as destroying the old industrial middle class made college a necessity. If the government can order you on to a battlefield, it must prepare you. If the government makes it easy for foreign plants to put citizens out of work, it can pay for the third level education.

    As for student loans outstanding? How about order Gates, Zuckerberg, Soros, and all the other dripping with cash humanitarians pay all loans outstanding? They make fortunes on poverty, let them pay to pull some of their victims out of it.

  7. lastdance says:

    Since I moved to Canada, I am amazed at how easy it is for young people to get into debt. Some thirty years ago, back in Germany, I would not have been able to get into so much debt even if I’d tried really hard. The banks would simply not allow it. No one used credit cards, everybody banked with credit unions and loans would only handed out to individuals with sound background.
    Today everything has changed, even in Germany. Most young people coming out of school have no idea how mortgage, loans, contracts work in the real world. Private banks are running the show and politicians are their willing helpers in getting everybody in as much debt as possible. The banks report staggering wins every three months and no one bats an eye.
    For profit education, same as healthcare, is a sure and secure way of transferring wealth from the lower class to the already wealthy.
    Canceling and writing off student debt would be the first step in the right direction. But it wouldn’t solve the issues causing these problems to begin with. For that our whole educational and economic system would have to change. Since big money is running the country, taxpayers and regular Joe’s are gonna be bearing the brunt of the fallout. Better fasten the seat belts.

    • Replies: @Ariana T.
  8. meamjojo says:

    “How much would I earn after graduation? What would be my monthly payment? How does compound interest work? Was 9% a reasonable rate? When would it begin to accrue? What if I became unemployed? I didn’t know, and if the banker satisfactorily explained this stuff, it didn’t stick to my hippocampus. I invisibly shrugged, hoping that I’d somehow muddle through.”

    Basic finance is a subject that should be taught in high school, no?

    But yes, student loans should be interest free. However, they still need to be paid back.

  9. Another meandering, internally contradictory essay on a topic he doesn’t know much about. Mr. Rall writes like a naive 19-year old talks on his third beer in a freshman dorm. How can someone with that college education and decades focused on politics still fall for the same propaganda?

    As my guidance counselor and teachers and parents had repeatedly warned, without a college degree I would be doomed to subsistence-level fast-food or manual labor — and factory jobs were getting hard to find.

    [P]ostsecondary education is no longer optional: 65% of all job postings require a postsecondary education, according to a study by the Georgetown University Center on Education and the Workplace.

    Just as Big Pharma is by law immunized from liability for today’s therapeutic Covid injections, Big Finance has long been protected from defaults at the expense of taxpayers. Those papers he still doesn’t understand were most likely a Stafford Loan under the Federal Guaranteed Student Loan program, Title IV of the Higher Education Act of 1965. Yet there’s the Progressive closing refrain

    The federal government ought to take over […]

  10. jsinton says:

    So do I get a refund now because I paid off my student loan on time in full? Shouldn’t I get a refund because I was proven a good loan risk? Or are we just teaching people that bad behavior and ignorance of responsibility is not their fault?

    • Agree: RadicalCenter
  11. Ariana T. says:
    @lastdance

    Canada’s interest rates and taxation levels are squarely ILLEGAL, i.e. several times much higher than what they should be, according to the Canadian constitution.

    Unsurprisingly, Canada is the paradise of swindlers and money launderers.

    The paradise of IMF distributors.

    The paradise of foreign corporations that come to Canada for the water, minerals, cheap labor, and that buy politicians while paying no taxe or redevances to iliminate (privatize for the ”elites” supporting war criminals) the health care and education systems.

    • Replies: @Curmudgeon
  12. Ted, this is not about loan forgiveness. This is about the government making whole the lenders who are faced with multiple (huge numbers) of defaults. It is being sold as helping the borrows out. But it is really helping the lenders out.

    • Agree: RadicalCenter
  13. I have huge student loans from more than 20 years ago still. When I took them out I was in graduate school but then subsequently fell ill in my 30s and defaulted. The default led to fines and fees that effectively doubled the loan amounts. Once I was able to start working again, I declared bankruptcy and that stopped the loan payments for 5 years. I was flat broke and because my loans were in default, I couldn’t get any help or terms to really repay them. At the time it would have been like \$1500/Mo for 9 months to rehabilitate the loans and then I could have gotten an Income Driven repayment plan and the payments would have been a couple of hundred a month at the most. Mind you this is after they doubled the loans with fines and fees. So, the whole situation was ridiculous. Either I pay pretty nearly 100% of my paycheck to rehabilitate these loans or I accept a garnishment that leads to them seizing my tax returns in perpetuity as well. All this why I was trying to get back on my feet and at least have a job. So, I accepted the garnishment and then filed for bankruptcy. Now, many years later, I do still have an Income Driven repayment plan and it’s about \$600/Mo. I accept it as a tax on how stupid I was as a young man in my 20s to have signed the paperwork for those idiotic, predatory loans. And now at a time when my savings account has 0.5% interest, my student loans on IDR are getting the servicer/government 3.5%. This is basically a tax that you voluntarily sign up for in order to get an Office job.

  14. Bro43rd says:
    @Jamie_NYC

    For that matter, credit card debt as well. And may as well have a minimum living wage of say \$100/hr or \$1000/hr. And while we’re at it, the elites should be required to serve me breakfast in bed too. Free new cars every year too.

  15. There was and still is NO need to borrow to earn a four-year undergeraduate degree in the USA. Please see the book by Zack Bissonette, “Debt Free U.”

    Simply advise high schoolers NOT to enroll in any school they know they cannot afford without huge debt (after making a yeoman’s effort to get scholarships).

    Pick an in-state school to get the lower tuition.

    Go to a state college (eg Cal State) instead of state university (U. Cal.) to lower the tuition more. I’ll use CA because more than 1 in 9 US residents live here (40 million out of less than 360 million):

    https://www.calstate.edu/attend/paying-for-college/Pages/campus-costs-of-attendance.aspx

    Do the first two years at a community college if needed to lower the tuition further.

    (During those two years, live with parents or other family if at all possible, to avoid dorm/apartment rent and have much lower food costs compared to a meal-plan / restaurants).

    Then work full-time during the summer and part-time during the academic year, as I did.

    Where is the need for debt? There is no college debt crisis, just avoidable self-inflicted college debt based on self-indulgence, refusal or failure to think long-term, and sometimes an entitlement mentality. By entitlement mentality I mean insisting on attending a private and/or out-of-state university instead of one that the student/family can afford to actually pay for.

    Medical care, now THAT’s often unaffordable despite our best planning, work, and reasonable decisionmaking, and that is a serious problem and a place where most of us need help. But the college debt “crisis” is whiny easily disproven nonsense. I’d really like a specific explanation from Ted Rail showing, with real-life numbers, that one can’t do what I described and earn a BA or BS degree in the USA without debt.

  16. Try to get this through your heads:

    Student loans is a scam by the banks.

    They are different from all other loans. You can’t declare bankruptcy because of them. You can declare bankruptcy if you run a billion dollar company into the ground by snorting it all up your nose. But you can’t declare bankruptcy if student-loan payments are actually making you literally bankrupt.

    That’s not a normal loan. That’s loanshark usury. Worse. That’s debt slavery.

    And let’s not talk about compound interest. I know people who took out 20,000 (over a 10-year period–that’s 2000 a year, hardly people living high off the hog) who now owe close to 60,000. That is not loans. That is usury. Worse. That is highway robbery. No, people who take out student loans should not be forced to pay them back. Banks should be forced to pay the debtors back, the criminal bastards.

    • Thanks: Jefferson Temple
  17. Left out of this discussion, as usual, is that this whole system is a con run by the “educational” institutions that loan recipients attend. Most of the loan money immediately ends up in the coffers of these institutions, as loan recipients use it to pay tuition, room and board, and fees. The institutions get the money and are relieved of all obligation. Loan recipients, lenders, and taxpayers are left holding the bag.

    This flow of money into “educational” institutions has fueled and continues to fuel extraordinary levels of inflation in the price of education. Sadly this influx of money and the resulting increases in the costs of attending these institutions does not improve the quality of the education these institutions are supposed to provide. In fact, it probably contributes to the declining quality of higher education in this country.

    The money winds up being used to pad the salaries and perks of ever expanding administrative staffs and constructing the lavish campus facilities that have made so many US campuses resemble country clubs rather than institutions of higher education. Competition for matriculants and their loan dollars have caused a steady relaxation in academic standards and the proliferation of useless and even harmful majors, e.g. the various grievance studies programs that have sprung up across the nation’s campuses.

    Two ways to address this might be: (1) a very high tax on the endowments of institutions whose financial resources are not expended on education and scholarship; (2) making institutions responsible for how well their matriculants and graduates are prepared for dealing with the world.

  18. @TG

    Your #1 contains a contradiction. “Capitalism” is not what the founders of the republic understood, commerce was.
    The founders understood money was the means of conducting commerce more easily, which is why they had colonial scrip.
    Otherwise, good observations.
    I would comment add that the article approaches the problem from the wrong perspective. My education was at the arse end of “the old ways”. Post secondary education had only just begun turning into a commodity. My father, born in the first decade of the last century, didn’t have a post secondary education, yet ended up in what would now be considered an upper management position. How did that happen? Companies used to hire people and mentor them. “Starting in the mail room” was not uncommon. They hired what they thought to be the brightest prospects into the mail room and moved them into positions to learn what the company was about and what the job was, in small chunks. I’m not talking about engineers, lawyers, and sometimes accountants (bookkeepers). Today the fancy HR term for that is succession planning, except the succession planning is now only focused at the top, where the underlings are seen to be disposable.
    Even community colleges are producing “graduates” for non-existent jobs that used to be on-the-job training. Post secondary education has become an enormous subsidy for employers, particularly large ones that off-shore their product production anyway.

  19. @Ariana T.

    You can track Canada’s descent into what you describe, starting with the Liberal Government in 1974 joining the Bank of International Settlements, and the government posing as Progressive Conservatives in the 1980s, that literally put the country up for sale. Not that any of the later ones have been any better. All of them been globalist corksuckers promoting mass immigration and the globo-homo agenda..

  20. SafeNow says:

    “Clemency proposals annoy people who already paid their loans, not to mention those who bypassed college rather than go into debt”

    A third category logically exists, oh high-grades, high-boards essayist. It consists of people like me. I avoided the loans because I had my arms in the pot sink for four years at the university dining hall, and my parents scrimped and saved. While I was at the pot sink, I sacrificed some study time and the personal-growth experiences of college.

    So sure I am “annoyed.” But I’ll agree to forgive the loans of anyone who donates time at the local college doing pot-sink time. Of course, this would overload the capacity of the pot sink, but there are plenty of similar jobs. That would placate me. But for my parents, who scrimped, they are in their graves.

    Btw, advice: When you are talking about your high academic achievement and Ivy college, use the phrase “managed to.”

    • Replies: @Greta Handel
  21. @SafeNow

    Another excellent comment, SafeNow.

    I avoided the loans because I had my arms in the pot sink for four years at the university dining hall, and my parents scrimped and saved. While I was at the pot sink, I sacrificed some study time and the personal-growth experiences of college.

    Ditto. And my guess is that we both grubbed during the summers.

    But you know what? Looking back, that job in the dining hall was a “personal-growth experience.” I still remember by name – and fondly – several of the local residents who were part of my crew. I became quite aware that they went home to challenging circumstances, instead of to a dorm of extended adolescents, many of whom wouldn’t dream of washing dishes.

    • Thanks: SafeNow
  22. A friend of mine had student loan payments of just over \$2,200 per month on a salary of \$65k. After payroll taxes and deductions and student loans, he couldn’t make it. He died alone in a car crash while visiting his family out east during the winter.

    We are in a predatory economic system and there is no existing model in academia to explain this system. It is real and it is crushing people. Torches of Freedom from Big Tobacco are just the tip of the iceberg. School is such an expensive scam where they actually force feed Maslow to undergratuates rather than explore Bernays. ect.

  23. Zira says:

    Yes that’s a scandal because the big banks are not short of cash for funding the global ”education system’‘.

    See: How Education International is Pushing Teachers’ Unions into the 4th Industrial Revolution

    https://unlimitedhangout.com/2021/12/investigative-reports/how-education-international-is-pushing-teachers-unions-into-the-4th-industrial-revolution

    ”For nearly a hundred years, the American Federation of Teachers (AFT) and the National Education Association (NEA) – the two largest teachers’ unions in the United States – have cozied up to corporate foundations, such as the Rockefeller philanthropies and the Bill and Melinda Gates Foundation, along with multinational technology companies, including IBM and Microsoft.”

    ”To strategize the dissemination of these commercialized ed-tech products through public-private partnerships with corporate philanthropies, several tax-exempt foundations and non-profit organizations also attended the 2013 WEF Meeting, including the Rockefeller Foundation, the Gates Foundation, the Ford Foundation, the Carnegie Endowment for International Peace, the Atlantic Council, and the Wellcome Trust: a massive medical research “charity” that is connected to the Galton Institute, formerly known as the British Eugenics Society.

    Similarly, to strategize the international funding of worldwide ed-tech proliferation, there were several Big Banks, financial services firms, and fiscal consulting agencies that likewise attended the 2013 WEF Meeting, including Goldman Sachs, Bain Capital, Bilderberger Peter Thiel’s Founders Fund, Soros Fund Management, Kissinger Associates, the Carlyle Group, Blackstone Group, Boston Consulting Group, McKinsey & Company, Lloyd’s, Prudential PLC, Visa, Mastercard, Citi Group, JP Morgan Chase, Bank of America, HSBC Bank, Rothschild GmbH, China Merchants Bank, Deutsche Bank, Bank of Moscow, the Central Bank of the Russian Federation, the Royal Bank of Scotland, the World Bank, the IMF, and the Bank for International Settlements.”

    The COVID mega-scam has been very useful for manufacturing consent to online “distance learning”.

  24. Anon[370] • Disclaimer says:

    “ Someday, hopefully, college will be free.” Tap you heels three times and repeat after me. There’s no place like home. There’s no place like home. I’m sure that will do it.

  25. JackOH says:

    Critics of American higher education may want to look at the James G. Martin Center for Academic Renewal. They have an e-newsletter and other resources. They seem very serious people. I’ve donated.

    There are individual professors’ blogs exposing the rot, hypocrisy, nastiness, academic dubiousness, and corruption behind the Ivy Line. I followed and commented on Margaret Soltan’s University Diaries blog for a few years.

    Thanks to all for commenting.

  26. If the federal government could hand out a six trillion bailout under Trump in one lump sum, they can handbout 1.7 trillion more in student debt relief. It only proves the bailouts have nothing to do with saving the economy. Imagine the spending that would happen if you handed out the 1.7 trillion to the demographic that spends the most?

  27. frontier says:
    @Fred C Dobbs

    Are you ‘tarded? E very one of these fields is a NET TAX DRAIN. What’s the matter with you?

    He isn’t retarded, he’s a conflicted educational apparatchik who wants to balloon tuition to the stratosphere, put most of it in his pocket, and make the taxpayers pay for it all. The overpriced garbage, mistakenly called “education”, sold by these institutions of higher indoctrination isn’t worth 10% of its price, but hear him: “No one should get rich off the backs of 17-year-old kids seeking to better themselves through education.” … least of all the crooks who pretend to teach these kids.

  28. Malcom X says:

    CANCEL ALL STUDENT DEBT!! NOW!!

    Who cares about the borrowers who already paid their loans back. Give them a refund, a tax holiday, or tax credit. In no real country that claims to be “advanced” should its qualified college applicants be required to pay exorbitant tuition to colleges and universities that make them wear face masks, take vaccines, and teach irrelevant crap between keg parties. Few of the plethora of colleges and universities even have jobs programs for its graduates. Increasingly, US graduates have to go overseas and rely of foreign countries for work because there is none in the USA, not least of which in one’s field of study. Furthermore, the cost of living is so damn high that the supposed benefit of a college education is cancelled out by paying for a car, utilities, housing, food, entertainment, other amenities, and taxes…not to mention paying the loan fee. Let’s just admit the whole student loan program was a scam from the start. Stop with the outdated “Christian” moralizing about paying back debts! If we want people to pay back debts, start with the US government and US corporations who owe Black descendants of American slavery reparations! Tell them to pay their damn debts back first before we saddle multiple generations with predatory loan debt.

  29. Cancelling student debt falls under “perverse incentive” (I know the US adhere to the Keynesian belief it is virtuous to live on credit; bullshit); stupidity is not (yet) a protected category.
    Neither does it make sense to attack the banks – they do what they are supposed to do
    (but loosen the bankruptcy protection somewhat to incentivize provident loaning practices).
    The only way I see to end the scam is to make the universities civilly liable if their alumni fail to secure jobs
    (which would have the added benefit of instantaneously ending all orchid studies 😛 ).
    Maybe this is a bit far in the other direction but it´s a start. Oh, and kill the DIE
    extortion racket and return power to the faculty.

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