Now our economy is facing the biggest student loan debt bubble in the history of the world, and when our new college graduates enter the “real world” they are finding out that the good jobs they were promised are very few and far between.
Then they discover they are tens of thousands of dollars in debt with loans that can not be discharged even by bankruptcy. This basically is been a sleazy hustle like subprime mortgages. Pump out the loans, which are backstopped by the federal government, securitize them, and everyone makes money. Little thought is given as to whether the college students can afford the loans. At least someone in foreclosure can wake away from the loan. Those with student loans can’t. Yes, of course students should be careful in taking the loans. But they are young and the loan waters are infested with sharks.
I am in that very same boat! masters degree and no job after graduation.
I am wondering if I can sue the schools or the government for not having the jobs available after graduation.
I did the same in the 90s with college loans… had over $50k in loans when I left, and that was after paying some down while on co-ops/internships. At least back then the jobs were pretty plentiful and I was able to pay them off. In todays economy? I do feel for them.
This article makes it seem like it’s the students who are foolish to take out the loans, ergo it’s their fault. Quite contrary, it’s the university’s and government’s fault for raising tuition to unrealistic levels. For nearly all students who do take out 5 figure loans, it’s because one can either go into debt or not go to college. I choose debt.
This problem will not be solved with banks being more careful regarding who they loan money to or with students not taking out loans. It can only be fixed if the government starts spending more money on higher education. Public universities would be able to stop relying on student tuition for their primary source of subsistence. In the last ten years government aide to CU (where I go) has been cut to virtually nothing and the tuition rises 10% each year.
At some point, I’m thinking in the next 20 years, tuition prices everywhere (public and private) are going to reach a point where only the elite class can afford to have a higher education. There has to be a fallout sometime, prices cannot simply keep going up at the present rate.
But unfortunately, the opposite is happening. School budgets are getting decimated as tuition rises. You’re right, college education will just be for the already wealthy soon
It’s not just tuition prices, it’s also a culture of debt. When I went back to school in ’96 the attitude was, “If you don’t need loans then you surely don’t need grants.” Financial aid presumed you were taking the maximum amount of loans and only considered any excess for grants.
Now, there’s no question about it: if you go to school you are expected to take loans. Worse, there’s no summary that tells students how much they have borrowed. Some students I know have no idea how much they owe.
But let’s face it, this isn’t just a university or bank problem. Sure, this is great business for the banks, and it helps universities fill their coffers with money students don’t have. But it’s also good for corporations who love indebted servitude from employees who don’t dare leave because they have too many bills to pay, government officials for whom those who take the risk of starting small businesses are just to difficult to regulate, and politicians who would rather you’re punching the clock instead of going to a protest. The debt/employment cycle suits the Power That Be just fine, because it disempowers *us*.