The U.S. once led the world in free education. The recent debate in Washington about whether to let student loan interest rates double ignores the fact that many students already cannot afford a college education or advanced training.
The GI Bill funded the education of an entire generation of veterans, as The Nation reminds us. And while Pell Grants once covered 69 percent of college tuition, they now pay just 35 percent.
With a government that shows no interest in making education available to the many, some Americans are taking the initiative themselves. Students in California have suggested a program that would make a four-year education free for students who maintain at least a 2.7 grade point average or perform 70 hours of community service per year. —ARK
The Nation:
The student loan crisis has had two effects. The United States, once the leader in the percentage of college graduates age 25 to 34, has dropped to sixteenth among thirty-six developed nations, with more and more students dropping out because they can’t afford the rising costs. The second effect is ruinous debt: the average indebted college graduate is $25,000 in hock. Total student debt exceeds $1 trillion—now greater than credit card debt. And student debt is inescapable. Bankruptcy rarely extinguishes it; even Social Security payments can be garnished in case of delinquency.
These debts weigh down the entire economy. Many students are forced to move back in with their parents after graduation, which depresses the housing market. Public interest work is less affordable; as Pam Brown of the Occupy Student Debt Campaign puts it, “The debt makes us very individual; we can’t afford to help someone else.” Now more than half of college graduates under 25 can’t find full-time work, and wages for recent graduates are lower than they were in 2000. Not surprisingly, delinquencies—and the fines and penalties that follow—are rising.
… We can easily afford the estimated $30 billion annual cost of free college education; a financial-transactions tax would raise many times that sum, and it would inhibit destabilizing speculation on Wall Street. We would reap the benefits of a better-educated citizenry, and young people could be more entrepreneurial and more public-spirited.
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Our unfettered capitalistic system is beyond reform. Those in control of the mechanism of government and the ever increasing upward spiral of wealth will not cede anything unless forced to do so. The “law” no longer works for the people but against them and we already know who the agents of “serve and protect” are serving and protecting. The time is fast approaching when the symbolism of the OWS movement will be shown to be an exercise in futility and the real means to the desired ends of equality, justice, and opportunity will require much more than slogans, meaningless elections, and civil disobedience. It is unfortunate that despite our best efforts and intentions history often does repeat itself and those currently enjoying the largesse taken at the expense of the majority of those who actually produce the wealth need be cognizant of the fact that their fate is already “baked in the cake”! FREE BRADLEY MANNING!!!!!
By the jack, May 7, 2012 at 2:56 pm Link to this comment
(Unregistered commenter)
if your “free education” argument is based on the GI
Bill, it is a straw man. the GIs who got this benefit,
EARNED it. the crybabies in today’s colleges need to
actually EARN something before they start demanding
“free education” for the silly worthless french
literature, art history or other liberal arts degrees.
a little planning for the future, getting an education
that will pay the bills makes more sense than wasting
the time and crying about it because no one needs such
“expertise”.
@prisnersdilema Well said. I would add a certain amount of culpability in this disaster to the institutions of “higher learning” as well. They know they can just keep on jacking up tuition because the loan money will always be there along with the youngsters that feel the urgency to be “educated” in order to fit into an increasingly ugly economy. What a system! Almost as diabolical a setup as fractional reserve banking!
The student Debt bubble is much like the housing bubble.
Students were encouraged to take on debt that was way out of proportion to their
ability to pay, and although the average debt doesn’t seem that small, fines and
penalties can easily double it.
The bankers create the debt, have a different goal than helping finance student
education. They are making money on that debt by bundling it and selling it to
investors, who pay up front. And since the government guarantees the loans they
have no risk. Its another big payday for them. SInce bankruptcy cannot clear the
debt, the debt becomes more attractive to investors.
But like the housing bubble there are more than likely billions, in fraudulent paper,
that the government is on the hook for. That and the loss of billions in profit to
banks on these loans sold as derivates, make student loan reform unlikely to
happen. Unless of course, the banks relinquish control over the political structure.
What is likely to happen instead, is the continued collapse of the United States as a
viable economic entity, more draconian collection laws, debtors prisons, and the
selling of prisoners to work off their debts to private corporations.
A Cooler Century? Wait and See
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By berniem, May 7, 2012 at 3:19 pm Link to this comment
Our unfettered capitalistic system is beyond reform. Those in control of the mechanism of government and the ever increasing upward spiral of wealth will not cede anything unless forced to do so. The “law” no longer works for the people but against them and we already know who the agents of “serve and protect” are serving and protecting. The time is fast approaching when the symbolism of the OWS movement will be shown to be an exercise in futility and the real means to the desired ends of equality, justice, and opportunity will require much more than slogans, meaningless elections, and civil disobedience. It is unfortunate that despite our best efforts and intentions history often does repeat itself and those currently enjoying the largesse taken at the expense of the majority of those who actually produce the wealth need be cognizant of the fact that their fate is already “baked in the cake”! FREE BRADLEY MANNING!!!!!
Report thisBy the jack, May 7, 2012 at 2:56 pm Link to this comment
(Unregistered commenter)
if your “free education” argument is based on the GI
Report thisBill, it is a straw man. the GIs who got this benefit,
EARNED it. the crybabies in today’s colleges need to
actually EARN something before they start demanding
“free education” for the silly worthless french
literature, art history or other liberal arts degrees.
a little planning for the future, getting an education
that will pay the bills makes more sense than wasting
the time and crying about it because no one needs such
“expertise”.
By grokker, May 7, 2012 at 2:55 pm Link to this comment
@prisnersdilema Well said. I would add a certain amount of culpability in this disaster to the institutions of “higher learning” as well. They know they can just keep on jacking up tuition because the loan money will always be there along with the youngsters that feel the urgency to be “educated” in order to fit into an increasingly ugly economy. What a system! Almost as diabolical a setup as fractional reserve banking!
Report thisBy prisnersdilema, May 7, 2012 at 11:37 am Link to this comment
The student Debt bubble is much like the housing bubble.
Students were encouraged to take on debt that was way out of proportion to their
ability to pay, and although the average debt doesn’t seem that small, fines and
penalties can easily double it.
The bankers create the debt, have a different goal than helping finance student
education. They are making money on that debt by bundling it and selling it to
investors, who pay up front. And since the government guarantees the loans they
have no risk. Its another big payday for them. SInce bankruptcy cannot clear the
debt, the debt becomes more attractive to investors.
But like the housing bubble there are more than likely billions, in fraudulent paper,
that the government is on the hook for. That and the loss of billions in profit to
banks on these loans sold as derivates, make student loan reform unlikely to
happen. Unless of course, the banks relinquish control over the political structure.
What is likely to happen instead, is the continued collapse of the United States as a
Report thisviable economic entity, more draconian collection laws, debtors prisons, and the
selling of prisoners to work off their debts to private corporations.