Friday, February 20, 2015

Are the feds helping students with easy loans? Hint: NO!

I always worry about my paycheck.

No, not the way the "comrades" do.  But, I worry that my paycheck is dependent more and more on the tuition and fees that students pay.  "Blood money" as I have referred to it in the past.  Over the years, I have started worrying that I am less an educator and more a mercenary.

As I have often blogged here, and written in op-eds, we are unnecessarily pushing students to college.  Right from the middle school years, we make sure to convey to students that not going to college is a sign of a loser, and that picking up a trade is evidence of being a loser.  Simply awful.  Just awfully distorted and condescending this is.  And so destructive to the human that a young person is.

The federal government does not help when on top of all the screw-ups it has managed to create in K-12 and higher education.
The federal government will lend money to anybody who goes to school, no matter how poor their chances of completing their degree and finding a job that will position them to repay their debt.
That is no exaggeration.  It is true.

The more the government says it will loan, well, is it any mystery that the costs continue to go up?  And, therefore, should it surprise us that the student debt is shattering records month after month?

Even worse--yes, there is even more of a horror story here--is the default rates in student loans.  Consider this chart:

You see how bad a story this is?  A horror story!
Of borrowers who began repaying their debts in 2009, 26 percent have already defaulted—meaning they fell at least 270 days late on their debt—according to new data from the Federal Reserve Bank of New York. Of those who went into repayment in 2005, when the economy was somewhat decent, 25 percent have defaulted.
You see why I am worried and guilty about my paycheck?

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