Thursday, April 1, 2010

The Great College Hoax




Is this the article that tells the story of an entire generation of students?

It's an "oldy" but definitely a "goody." Kathy Kristoff's article is spot on with her analysis of the deliberate misleading and plunging of an entire generation of young people into crippling debt through college propaganda, the criminal student loan system and easy money. We wish the article were an April Fool's joke, but it definitely is not.

1. It tells a real story - a couple breaking up because they both had too much debt from undergrad and law school.

2. Former students' inability to make payments on their inflated and devalued college degree is discussed as well.

3. It details the inevitable harassing calls from Sallie Mae that follow, along with a short blurb about their criminal former CEO, who made off (Ma-doff) with $72 mill before the stock tanked.

4. The article states straight out that borrowing goo-gobs of money is often a horrible investment and can leave college graduates way behind their high school grad counterparts:

"[O]ne in four college grads takes home considerably less than the top quartile of high school grads, according to a College Board study. Even some people with doctorates earn less than people without so much as an associate degree, it shows."

5. Consumer fraud is mentioned.

6. As is the case with sub-prime lending in real estate blacks (and other minorities) are the lab rats for sub-prime student lending.

7. It also sums up prior generations' warped view of student loan debt with this tidbit:

"For many a bachelor's degree is nothing but a stepping-stone to a professional degree. Joel Kellum is one of those. After graduating from the University of Virginia, he got into California Western. Kellum approached a law professor about the wisdom of borrowing for the tuition.

"He said, 'Don't worry,'" Kellum recalls. "'We had the same thing when we were in school.'"

My guess is that the law professor did not have an undergrad major involving math. They "had the same thing"? What a joke.

But it's all in there, folks. Check it out. It's the college chapter of the Children of Debt story in a nutshell. Read it. Have your parents read it. Have your extended family read it. The education bubble is bursting, yet there are millions of high schoolers ready to waste time and future earnings to reflate it. This info has to get out to them before it's too late.

A sad story, but it won't be the whole story. There will be way too many educated and disgruntled young people in this country for change to be avoided (not the fraudulent "change" touted by the current president).

The market will win as more become privy to the Education Industrial Complex and the fact that it exists for its own benefit and not for the benefit of its students. It will take time, but college as we know it will not hold its place as the "key" to the good life once supply and demand show the reality.

In the mean time, there may be quite a few Future expats, like our Angry One. All is not lost. Think globally.

4 comments:

  1. Appreciate the shout out COD.

    Think globally indeed. The realization that I had, which I think many are being to wake up to, is that you just don't need that much money to live a decent life IF you don't pay your creditors. Doubly true if you stay out of Western Europe, North America, East Asia, and a few other places.

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  2. "many are beginning to wake up to"

    apologies

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  3. Please sign the Whitehouse.gov Petition to get the Administration to look at the deceptive and predatory lending practices in the private student loan industry.
    https://petitions.whitehouse.gov/petition/sallie-mae-and-private-student-loan-industry/5dDQ7RqT

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