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College Debt is the New Normal
Accuracy in Academia ^ | September 3, 2015 | Malcolm A. Kline

Posted on 09/04/2015 11:08:19 AM PDT by Academiadotorg

*Professorial types are excited by a plan, courtesy of Michael L. Hays of New Mexico, to solve the college debt crisis. The irony is, it would put the onus of responsibility for college loans on some of the most irresponsible institutions in the United States today—colleges and local and state governments.

“We need to put college funding on a sensible basis,” Hayes, a PhD, writes.

“The government should not lend money indiscriminately to anyone who wants it for college: serious students, students unsure of their purposes, students for whom college is a substitute for unemployment, students who want a two- or four-year vacation, etc. Instead, it should lend to colleges based on their demand for funds; in turn, the colleges would make loans to students whom they believe, on the basis of their already existing application processes, would be likely to benefit from college and repay their loans; in turn, the colleges would use their repayments to repay the government. Schools would assume the costs of their mistakes—perhaps some small allowance (ten percent?) for the inevitable mistakes—;

Otherwise, states would be guarantors of the loans of public colleges and universities. Private, especially, for-profit schools, would also assume the costs of their mistakes and require private-equity guarantors of their loans. For-profit schools, usually living off the federal dole and providing a poor education, would be forced to upgrade themselves, or be driven, out of business.”


TOPICS: Business/Economy; Culture/Society; Government; US: New Mexico
KEYWORDS: collegedebt
the academic solution to the college debt problem: Let the government handle it. Yeah, that always works so well--
1 posted on 09/04/2015 11:08:20 AM PDT by Academiadotorg
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To: Academiadotorg

When I was a kid, in my first job out of college I sold cable TV door to door when it was first being installed in my home town.

I got so sick of the elderly telling me they were on a fixed income. This is while I was scraping by on $5-10 a sale. They would whine about being on a fixed income while wanting a discount and driving their new Cadillac. I did not hate them, but it got tedious.

The other day I felt that feeling again.

I was on a web forum and some kid was describing his job and he tossed out that he has lots of student debt. It really did not have much to do with the conversation.

I went on to ask him if anyone explained that loans needed to be paid back in order to those coming along to be able to get loans too. He was not able to answer me directly.

Every semester for the past seven years, I sat down with my kids at the end of the school year and we discussed the balance of their loans, the potential income from their jobs and ways they could work through the summer to minimize their need to take out loans.

And I even hear it from my kids. [[[[sigh]]]]

READ the DAMN CONTRACT before you sign away your future.


2 posted on 09/04/2015 11:29:17 AM PDT by Vermont Lt
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To: Vermont Lt

With Obama ranting against professional licensing as a barrier to low-income people, I wouldn’t be shocked if college debt actually shrinks quickly. Young people today know that government & business will conspire to suppress wages (especially as Asians are trafficked here to replace white-collar workers in the same manner braceros from south of the border were brought to suppress blue-collar wages), and they are less likely to invest the time & money in a degree just to end up working as a 7-11 cashier.

There are many stories today about colleges trying to attract foreigners; that was being done in my day as well (25 years ago), but the pace is picking up due to Americans’ hesitation to squander the time & money.


3 posted on 09/04/2015 11:42:46 AM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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To: Academiadotorg
In a few years I am looking forward to retirement. When I was in veterinary college, I worked one job at the university hospital in the lab doing differentials at ten dollars an hour. I also worked after hours at the Veterinary college on research projects that needed a part time reliable technician. I was also in the Air National Guard and had to report to the base whenever customs inspections were necessary and had to pull drill one weekend a month. The students with loans were gunners and didn't have to work and studied or partied in their free time. There were times I wasn't prepared well enough for the exams but still got through. While in Veterinary school I also had to go through the NCO academy at the base on top of the professional workload at the college. I also had to take 7 level exams in my AFSC to keep my rank and rating. When I graduated I didn't owe a red cent. The downside is my grades were average and no one that looks at a curriculum vitae considers what else the student was doing while in the college and evaluation is strictly on the grades. Looking back I was the only one in a class of 60 that worked outside of the class. Today veterinary students are not allowed to work outside of the curriculum and I see students with a debt load of $300K or better.
4 posted on 09/04/2015 11:44:52 AM PDT by vetvetdoug
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To: Academiadotorg

Mrs. Bears and I took the highly unusual step of paying for the college education of both of our sons.

Both took longer than the customary four years to complete their undergraduate degrees, so I sometimes question the wisdom of decision.

Regardless, our oldest, now working, has come to realize the great gift he was given as he listens to his peers complain about their student loan debt. The youngest, recently graduated, knows but won’t admit it just yet.


5 posted on 09/04/2015 12:11:05 PM PDT by Arm_Bears (Biology is biology. Everything else is imagination.)
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To: kearnyirish2

One job I also had was working with many colleges throughout New England. These little teeny tiny colleges that were private and expensive all started changing their names from “College” to “University” because they found the could not attract foreign students. I guess “colleges” are considered lower in status than a University.

I thought the whole thing was stupid. These kids were not getting ivy leave degrees and this change meant nothing.


6 posted on 09/04/2015 12:16:59 PM PDT by Vermont Lt
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To: Arm_Bears

One of the best gifts we can give our kids. The old days of working summers for tuition are long gone as tuition outpaced wages over a few decades.

Think these kids loaded with debt will care about paying for their elders care down the road?


7 posted on 09/04/2015 12:45:45 PM PDT by zek157
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To: zek157; Arm_Bears

Parents need to look at maintaining as much wealth in the extended family as possible, that is the new reality, with this economy. And if it means helping their children with their education or even helping with the purchase of their first home, if it keeps more wealth within the extended family, that is the proper course to take.


8 posted on 09/04/2015 12:47:53 PM PDT by dfwgator
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To: dfwgator

That is exactly how we look at it going forward.


9 posted on 09/04/2015 1:11:18 PM PDT by zek157
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To: Arm_Bears

We are also paying for both. My son decided to live at home so he will have money left when he graduates. Plus he is working two jobs.


10 posted on 09/04/2015 1:13:44 PM PDT by AppyPappy (If you really want to irritate someone, point out something obvious they are trying hard to ignore.)
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To: AppyPappy
Plus he is working two jobs.

"Only two jobs? Why that lazy lima bean."

11 posted on 09/04/2015 1:16:12 PM PDT by dfwgator
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To: Vermont Lt

IIRC, there are requirements to be designated a “university” (that may be tied to size, number of campuses, etc.). Private schools here in NJ are in trouble because many of them that grew quickly as enrollment swelled during Vietnam are coming down to earth since nobody needs draft deferments anymore. The same things that have forced Jerseyans to cut back on everything else (as their discretionary dollars dried up) is also the death knell for those small private schools.


12 posted on 09/04/2015 3:33:15 PM PDT by kearnyirish2 (Affirmative action is economic warfare against white males (and therefore white families).)
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