One more time: don’t go to graduate school

Because taking out student loans to pay for it will ruin your life:

Paying down a $30,000 student loan isn’t much different from paying off a car loan. On the other hand, former students with more than $50,000 in debt are considerably less likely to own a home, and those with large debt that eats up a big chunk of their income are much worse off – those who spend more than 10% of their income are 22% less likely to own a home.

So the problem isn’t debt, it’s unmanageable debt. And not all college debt is created equal. For example, The New York Times recently reported that only 12% of students who graduated from public colleges owed more than $40,000, while 20% of private college graduates did. On the other hand, fully 48% of for-profit college graduates owed more $40,000.

But to find the really stunning student debt numbers – and the heart of the problem — you need to look at students who go on to graduate school.

Median combined college / graduate school debt for someone who earned a degree in 2012 was $57,600 and worse, one-quarter of all grad degree earners had borrowed more than $100,000, according to a paper published last year by the New America Education Policy Program. One in 10 borrowed more than $150,000.

It should come as no surprise that people carrying six-figure student debt balances aren’t taking out mortgages. They are already making what feels like a mortgage payment every month.

Roughly 40% of the $1 trillion-plus outstanding student debt is owned by graduate school students, the paper says.

Never forget that Student Loans Are Insidious.  But there’s more to the story of the $1.2 trillion amount of student debt than just undergraduates borrowing too much.  A big reason for the spike in student loan debt is the increase in the number of people who went to grad school because they couldn’t find a job:

The danger of graduate school debt comes into focus even more sharply when you consider the surge in graduate school applications that occurred during the Great Recession, when many suddenly unemployed mid-career professionals jumped into graduate schools for a lifeline. Their loans are just starting to come due now.

Of course, big graduate school balances aren’t the only serious problem in the student debt world. College students who drop out face perhaps the biggest obstacles of all – no degree and years of monthly repayments.

Not to mention the graduate students who are kicked out of their programs for refusing to kowtow to their professorial overlords by cleaning their home and/or office.

This will not end well.  The solution: to forgive ALL federal student loans.  That’s right, wipe them out.  This can be done by making a simple entry in the accounting books.  I can already hear the 2 of you gasping.  “But what about the moral implications of doing this.  You borrowed it, you HAVE to pay it back!”

And such statements, which are rife on Internet message boards, are ridiculous.  The only thing that such a comment accomplishes is to reveal the commenter’s ignorance of the current fractional reserve banking system.  Because borrowing from the federal government (or any bank, for that matter) isn’t the same as borrowing from your friend/neighbor/family member.  To those think that it is, I posit this question: where did the government get the money that they loaned to those students?

Here’s a hint: they didn’t get it from the taxpayer.  That’s right, no tax dollars were loaned to students.

Here’s what really happened: the government ‘created’ the money out of thin air by making an accounting entry, and then ‘loaned’ it to students.  They are now charging interest (daily) on this money that they created out of thin air (i.e., nothing).

And what will happen if they forgive these loans?  They will make another accounting entry, and *poof* the loans/money are gone at no cost to the U.S. taxpayer.

There is an added benefit: it will reduce the money supply in the U.S., and as a result prices will fall, especially the price of going to college.  But don’t count on the current crop of mouth breathing idiots members of Congress to do anything about this.  They can’t even figure out that Donald Trump isn’t Russian.


Categories: Banking, Banksters, Bastards, College, Econ 101, Fraud, Government Shenanigans, Graduate School, Lawless, Liars, MBA programs, Propaganda, Student loans, Tuition

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