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Chart Of The Day: College Tuition Vs Real Disposable Income

Tyler Durden's picture


Curious why distinguished, Nobel-prize winning economics professors (most of whom have their own Op-Ed columns and blogs to fill all that free time they have when they are not actually filling impressionable minds with "this time the model will work" ideas, keeping Solitaireoffice hours or coming up with arcane, meaningless equations to explain human behavior) have gone "all in" to defend a system which promotes the ubiquity of cheap credit, and the creation of a generation of nondischargeable debt slaves? Because if it wasn't for said cheap, ubiquitous debt, their salaries would be utterly unsustainable (and for once austerity would hit the academic ivory tower headquarters of Keynesianism located in Cambridge, New Haven and West Philadelphia). And for this they have to thank an economic system they created which is now disintegrating before their eyes, and in which every incremental dollar of systemic debt raises total disposable income per capita by less and less and less.

Source: BloombergBrief


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Mon, 10/01/2012 - 08:12 | 2844401 GetZeeGold
GetZeeGold's picture



Johnny give me all your money.......your education is now complete.


Now go find someone to pay your way through life......socialism in 60 seconds.



Mon, 10/01/2012 - 10:09 | 2844841 Manthong
Manthong's picture

I would love to see a chart:

"Local School District Superintendant Salaries Vs Real Disposable Income" 


Mon, 10/01/2012 - 07:58 | 2844404 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Tuition where I graduated 5 years ago has gone up 60 % in that amount of time. They built a nice convention center. What a waste.

Mon, 10/01/2012 - 08:06 | 2844417 Ralph Spoilsport
Ralph Spoilsport's picture

My college has also raised tuition by almost 60% since I graduated in the mid 70's. The "edifice complex" is in evidence at all the colleges and universities in this area. You have to wonder if anything will ever be done about it since ZH is about the only place I know of where hard facts and figures are made available.

Mon, 10/01/2012 - 08:23 | 2844432 economics9698
economics9698's picture

You should take one of my classes.  I hit the students with ZH.

Mon, 10/01/2012 - 09:06 | 2844579 dark pools of soros
dark pools of soros's picture

You forgot rule #1

Mon, 10/01/2012 - 08:30 | 2844445 Joshua_D
Joshua_D's picture

Don't worry. Reality will do something about it. Reality always does something about it.

Mon, 10/01/2012 - 08:46 | 2844481 rbg81
rbg81's picture

Only a 60% increase since the mid-70s?  Hate to break it to you, but that's a bargain.

Mon, 10/01/2012 - 10:32 | 2844949 RiverRoad
RiverRoad's picture

Educational institutions and the banks making those loans for those tuitions have been in bed together for years.  Disgusting scam.

Mon, 10/01/2012 - 10:36 | 2844962 ZeroAvatar
ZeroAvatar's picture

Yeah, and when you present them, the sheep downvote you because their wittle heads hurt after reading a few facts.


We don't need no stinking FACTS!    RIGHT, SHEOPLE?

Mon, 10/01/2012 - 11:30 | 2845203 odatruf
odatruf's picture

I just did the math for my own college.

I entered in 1992 and graduated in 1995 (I had some credits already from a community college). 

During my first year, tuition was about $7,500 for the entire year. That does not include any rooming or meals cost, just tuition. This was, admittedly, a very good deal for a private college at that time and was part of the reason I chose to go there. When I graduated three years later, the tuition had gone up almost 50% to be a little over $11,000. But because I kept a high GPA, I was grandfathered in at the rate I first paid, which I think was a very motivating policy (again, part of why I chose this school).

I just checked and for the 2012-2013 school year, tuition alone is $30,672. That's a 15% increase every year for the past 20 years.

Mon, 10/01/2012 - 11:57 | 2845292 snakeboat
snakeboat's picture

is actually more like 7.82% annually compounded... but I get your point.

Mon, 10/01/2012 - 12:57 | 2845528 odatruf
odatruf's picture

True, I didn't compound it.  Just simple increase divided by term. I stand corrected.


Mon, 10/01/2012 - 13:52 | 2845782 Common_Cents22
Common_Cents22's picture

A money manager delivering near 8% for 20 years would be a multi millionaire.   But 8% compound growth for tuition is easy peasy for libtard governmentcrats sucking on the public teat.

Today's college students taking on all that debt will be future govt slaves.

GA Tech was affordable back in the day.   Look at the increases the last 4 years!!!!

Table 6.1  Undergraduate Matriculation & Nonresident Tuition and Fees, Fiscal Years 2008-2012   FY2008 FY2009 FY2010 FY2011 FY2012 5 Year % Change In-State Tuition $4,496 $4,856 $6,070 $7,070 $7,282 62.0% Out-of-State Tuition $22,220 $23,998 $24,280 $25,280 $25,492 14.7% Mandatory Student Fees $1,146 $1,184 $1,536 $1,646 $2,370 106.8%
Mon, 10/01/2012 - 14:52 | 2846095 BidnessMan
BidnessMan's picture

Yep - amazing the increases.  My last quarter at Ga Tech in Spring 1977 was the first time that full-time in-state tuition went over $200.  Went from $192 to $202.  Paid my own way with a co-op job and no loans.  Not remotely possible any more.

Mon, 10/01/2012 - 20:09 | 2846908 Common_Cents22
Common_Cents22's picture

I was there 85-89 and I think tuition was 2500-3500 or so for in state.

Mon, 10/01/2012 - 08:09 | 2844418 GetZeeGold
GetZeeGold's picture



They built a nice convention center. What a waste.


It will only be a waste after they build the next convention center.


The bad news is they won't be able to afford the cops or firefighters to protect it.......oh well.



Mon, 10/01/2012 - 08:24 | 2844435 economics9698
economics9698's picture

I paid $30 a semester hour and that was a rip off. 

Mon, 10/01/2012 - 10:16 | 2844876 indygo55
indygo55's picture

It will make an excellent detention center.


Mon, 10/01/2012 - 08:11 | 2844423 ParkAveFlasher
ParkAveFlasher's picture

Useless convention centers require steel and concrete and labor, so score that a de facto union payout that will find its way to organized crime.

Same goes for stadiums.  We are a sneeze away from Weimar.

Mon, 10/01/2012 - 08:00 | 2844407 AU5K
AU5K's picture

The divergence started right in 2001, when schools had to fund massive diversity departments, some containing hundreds of staff, and infrastructure upgrades.  Neither of these results in a better education or students that employers would want to hire. 

Mon, 10/01/2012 - 08:26 | 2844439 economics9698
economics9698's picture

Government hires them, well they use to.  A lot of government lay offs in the future.

Mon, 10/01/2012 - 08:33 | 2844450 Gully Foyle
Gully Foyle's picture


We all love a fictional racist explanation regarding everything iwrong with the world. Some of the slower readers may actually for into that victimization trap.

The reality is administration salaries have increased dramaticly. Far outstripping that of an educator.

Those administrators develop closer ties to the local politicos who need to attract money to the municipality.

Thus the viscious building drive.

Our local CC was pretty vibrant in the 70's-80's. Now it's a shit hole. Administration never grasps the necessity of quality education, and I'm putting tech at the top of the list. All they see is the ability to hire part timers when the older real educators retire.

But at the top of the blame list is the local community, we the people. If we aren't involved in the decision making process lacally, if we don't pay attention to who teaches our children what ( And I DO NOT mean the kneejerk reactionary shit espoused by some here) then why complain?

It's your own fucking backyard, why let strangers shit in it?

Mon, 10/01/2012 - 08:42 | 2844467 economics9698
economics9698's picture

Get rid of the bold.

Mon, 10/01/2012 - 08:44 | 2844478 Gully Foyle
Gully Foyle's picture



I don't tell you to stop sucking cocks do I?

Mon, 10/01/2012 - 08:50 | 2844494 GetZeeGold
GetZeeGold's picture



Winning hearts and at a time.


Clearly we can't compete with the genius that is you.



Mon, 10/01/2012 - 09:06 | 2844583 economics9698
economics9698's picture


Mon, 10/01/2012 - 09:17 | 2844617 sessinpo
sessinpo's picture

That's the liberal way. Gully and a few other liberals always resort to that anytime you present any idea or comment they don't like. They just can't take it. It's like the 5 year old in the grocery store that is told, "you can't have that candy." Then they throw a fit, start crying profusely. A good ask kicking is all they need.


Come on Gully. Give me some insults. The rest of us ZHs are awaiting your nonsense to laugh at.

Mon, 10/01/2012 - 09:02 | 2844551 centerline
centerline's picture

Fuck off GF.  Your acting like a complete douchebag with crap like this.


edit:  asking why people allow this in thier backyard completely misses the mark.  People don't even know their neighbors anymore.  It is all tied together with the rat race accelerating into oblivion.  It pisses me off as well.  But, it ain't gonna change until it after it breaks.  

Mon, 10/01/2012 - 08:43 | 2844473 GetZeeGold
GetZeeGold's picture



If it makes must be racism.


Have you been reading Ann Coulter?



Mon, 10/01/2012 - 08:52 | 2844515 AU5K
AU5K's picture

Gully - I hear your rage.  You should not be ashamed of being the janitor at your local community college.  Off to work, now.

Mon, 10/01/2012 - 11:33 | 2845216 odatruf
odatruf's picture

Nothing wrong with being a janitor. Anywhere. It's decent work that has to be done.  

Mon, 10/01/2012 - 08:01 | 2844408 Dermasolarapate...
Dermasolarapaterraphatrima's picture

Debt may not matter anymore. I heard on the radio, "zero down mortgages are back. Get them while they last!"

Same for the housing market, "Flip houses in your spare time. Join our dedicated team of Flippers."

I never hear about opening savings accounts anymore. How can the economy recover with this attitude?

Mon, 10/01/2012 - 08:15 | 2844424 Ralph Spoilsport
Ralph Spoilsport's picture

Also heard the same kind of radio ad lately for a bunch of crooks who had their own call-in show for a while. The local version is a bunch of idiots called the "Hell Yes!" refi specialists who sound like they have copied Jim Cramer's show complete with sound effects. They were forced off the air after 2008 by irate callers who had to be bleeped out. Not a good sign if these parasites are back on the air trying to scam people again.

Mon, 10/01/2012 - 08:13 | 2844425 ParkAveFlasher
ParkAveFlasher's picture

Why bother saving?

Mon, 10/01/2012 - 08:01 | 2844409 RRA_223
RRA_223's picture

Adding fees, room and board should skew the graph:  Government taxes or Banking fees are not supporting the Ivory tower's pay scale, nor their multi-million dollar football stadiums.  I also speculate that college students are more transient than ever, purposefully trying to find a school away from home as to not interrupt the college "lifestyle" they expect after decades of hollywood glorification; either that or they're trying to be more competitive by going to a better school in a different geographical location.   Out of state = higher room and board costs.

I believe higher education IS still a bubble - just not one conclusively damned by this particular graph.

I'd like to see that graph juxtaposed by one of simply in-state tuition versus disposable income.  

Mon, 10/01/2012 - 08:48 | 2844489 spooz
spooz's picture

So you want to cherry pick.  Is there a particular state you'd like to look at?  U of I tuition is expected to go up 20% in the next four years as less money is available from the cash strapped state.  I doubt if income will make such a recovery.

Here is the data for U of I tuitions, along with minimum wage and number of 8-hour days of work it would take to pay the tuition at minimum wage, copied from blog comments on Staight Dope:




YEAR TUITION M. WAGE DAYS WORK 1966-1967 $170 1.25 17 1967-1968 $170 1.40 15 1968-1969 $170 1.60 13 1969-1970 $246 1.60 19 1970-1971 $321 1.60 25 1971-1972 $396 1.60 31 1972-1973 $496 1.60 39 1973-1974 $496 1.60 39 1974-1975 $496 2.00 31 1975-1976 $496 2.10 30 1976-1977 $496 2.30 27 1977-1978 $496 2.30 27 1978-1979 $586 2.65 28 1979-1980 $634 2.90 27 1980-1981 $682 3.10 28 1981-1982 $748 3.35 28 1982-1983 $822 3.35 31 1983-1984 $1104 3.35 41 1984-1985 $1248 3.35 47 1985-1986 $1314 3.35 49 1986-1987 $1406 3.35 52 1987-1988 $1470 3.35 55 1988-1989 $2070 3.35 77 1989-1990 $2130 3.35 79 1990-1991 $2130 3.80 70 1991-1992 $2236 4.25 66 1992-1993 $2486 4.25 73 1993-1994 $2486 4.25 73 1994-1995 $2760 4.25 81 1995-1996 $3000 4.25 88 1996-1997 $3150 4.25 93 1997-1998 $3308 4.75 87 1998-1999 $3408 5.15 83 1999-2000 $3546 5.15 86 2000-2001 $3724 5.15 90 2001-2002 $4410 5.15 107 2002-2003 $5302 5.15 129 2003-2004 $5568 5.15 135 2004-2005 $6460 5.15 157 2005-2006 $7042 5.15 171 2006-2007 $7708 5.15 187 2007-2008 $8440 5.15 205 2008-2009 $9242 5.85 197 2009-2010 $9484 6.55 181 2010-2011 $10386 7.25 179

Mon, 10/01/2012 - 08:03 | 2844412 LongSoupLine
LongSoupLine's picture

Just taught my son and daughter how to do their own brake job this THAT's useful education.

Mon, 10/01/2012 - 08:04 | 2844414 Sudden Debt
Sudden Debt's picture

Life is like a box of chocolats...

when you finished 1 downpayment, there's plenty more to go!

Mon, 10/01/2012 - 08:14 | 2844426 caimen garou
caimen garou's picture

Now thats a subject that I have personal knowledge! my daughter is in her second year and good thing we started he college fund when she was six years old. The cost of school,books,fuel,cloths,and food is outragous! The fools that say there is little inflation are exactly that, fools! I can't help it, FUCK YOU BEND US ALL OVER BERNAKE! Also she was able to apply for an academic scholarship but I did'nt let her apply for it,last week she learned that kids were getting checks for up to $500 from the unused portion on the state academic scolarships! what a mess!

Mon, 10/01/2012 - 08:16 | 2844427 GetZeeGold
GetZeeGold's picture



You seem to be handling it fairly well.


Mon, 10/01/2012 - 08:27 | 2844440 caimen garou
caimen garou's picture

at least she (my daughter) understands the value of money, it takes a wrecker truck to pull a dollar out of her hands!

Mon, 10/01/2012 - 08:34 | 2844454 GetZeeGold
GetZeeGold's picture



She sounds like a fine did a good job Amigo.


Mon, 10/01/2012 - 08:35 | 2844456 Gully Foyle
Gully Foyle's picture

caimen garou

Dude, never say shit like that here. Someone will call her the progeny of a "joo banker".

Mon, 10/01/2012 - 08:45 | 2844480 GetZeeGold
GetZeeGold's picture



Dude, never say shit


He wouldn't.......he's a classy guy.


Mon, 10/01/2012 - 10:47 | 2845007 ZeroAvatar
ZeroAvatar's picture

Dude, fu......nevermind.  Only 2 people to a fight.

Mon, 10/01/2012 - 09:20 | 2844638 aerojet
aerojet's picture

That could be good and bad--good in the sense that it is hard work to not get scammed these days, but also bad in the sense that people who are perceived to be "cheapskates" are shunned socially.  It's a fine line. 


My wife and I constantly get calls from our various alma maters asking for bucks.  I always tell them my tuition, fees, room and board were paid in full when services were rendered.  These schools give out "scholarships" like candy, but only to Americans.  The foreigners pay full freight.  And these days, a scholarship is just a one-sided means of price negotiation.  Lefty fucking Marxist bastards who have to control everything, that's what you're up against with these schools.

Mon, 10/01/2012 - 10:39 | 2844972 RiverRoad
RiverRoad's picture

Ya got that right:  the full tuition payers fund the scholarships.  Interesting socialism.

Mon, 10/01/2012 - 08:42 | 2844472 Gully Foyle
Gully Foyle's picture

caimen garou

Had a neice got a full boat scholarship. Third year in had a bad relationship and wound moving to Portland working three jobs to get by.

Our attoney's daughter left law school in Michigan because of a bad relationship. Now she isn't even certain she wants to follow in daddies footsteps.

Have a nephew in FLA couldn't cut it at cc, now he is in a four year state school. Want's to be a lawyer but can barely read. Asshole parents are fake hippies, talk the talk but don't walk the walk, and more or less let him drift along with their shit stream.

Son is out today checking out an engineering degree. He wants the money and has the desire. We taught him to work hard, be responsible, and think instead of parroting what everyone else says.

Mon, 10/01/2012 - 09:21 | 2844643 aerojet
aerojet's picture

What money would that be?

Mon, 10/01/2012 - 11:17 | 2845128 PorscheNoSub
PorscheNoSub's picture



Engineering is such an awesome field here, I am looking overseas. This isn't the '60s any more and I am tired of being managed by idiots. At least there is still some respect for the field elsewhere until the corporate world kills that, too. 


And good luck finding a good engineering school, if one still exists! If it isn't research it doesn't exist. Applied Science is the place to go but an Engineering Technology degree just isn't the same (apparently). 

Mon, 10/01/2012 - 14:40 | 2846036 BidnessMan
BidnessMan's picture

My alma mater Georgia Tech is a good engineering school - and just ranked as the #1 value in US colleges today in terms of income upon graduation compared to tuition paid.

So there are good engineering schools out there.  The kids graduating from Tech are smart, practical, and work hard.  Not a party school. Grads "get out" rather than graduate, and Ma Tech finds many ways to give students the shaft.  But wish my business could afford to hire more of them.


Wed, 10/03/2012 - 11:01 | 2851862 PorscheNoSub
PorscheNoSub's picture

How long ago did you finish (if you don't mind me asking)?


I talked/worked with Aero grads (my field) from Purdue, Virginia Tech, and Ohio State and the story was the same - not so great. Maybe just that field is shot here in the States, but the ME guys I ran into weren't so hot either. More like a degree factory than a place for learning. That or just graduate student factories. This was about 5-6 years ago. I am just saying compared to 20 years ago, they don't teach anything any more. 


I also wonder how the rankings are calculated and if scholarships are a factor. I know the state of Georgia has a great in-state scholarship program - I wish I could have taken advantage because Georgia Tech was one of my top picks for schools.

Mon, 10/01/2012 - 08:16 | 2844428 Appleseed
Appleseed's picture

Im dropping out, putting my tuition into a monster box, then going back to school when its cheaper

Mon, 10/01/2012 - 08:24 | 2844436 GetZeeGold
GetZeeGold's picture



Good'll save a hell of a lot on gas. That's really gonna tick off the boys in Brazil however.


Mon, 10/01/2012 - 08:24 | 2844434 sharky2003
sharky2003's picture

Interesting. This chart looks identical to a chart in Chris Martenson's book "The Crash Course" pg 86 describing bubbles, in particular the housing bubble.

Is it such a bad thing though if tuition prices decline?

Mon, 10/01/2012 - 08:24 | 2844437 timbo_em
timbo_em's picture

This chart looks so much more funny when normalized to 100 in 2001.

Mon, 10/01/2012 - 08:27 | 2844441 holdbuysell
holdbuysell's picture

Michael Burry noted the chart of US incomes vs house prices and how the gap kept growing as home prices took off. He knew it just wasn't sustainable.

And the rest is history.

History rhymes (or is beginning to) indeed.

Mon, 10/01/2012 - 08:35 | 2844455 Antifaschistische
Antifaschistische's picture

What the gov and schools are doing to students is immoral. This is not a buyer beware situation only. No rational saver would EVER loan these students money. Only a government could trigger such a wave of lending stupidity and debt enslavement.

Mon, 10/01/2012 - 08:47 | 2844485 LMAOLORI
LMAOLORI's picture



If they want to voluntarily become debt slaves I don't give a crap but I do care when that same government and the debt slaves want to further enslave my children/grandchildren to pay for their stupidity. They already have their greedy hands in my pocket to build ridiculously expensive buildings and to fund programs as it is. And it's never enough..

Obama Student Loan Forgiveness

Student Loan Forgiveness Programs Short On Funds

Those thieves want more

Learn What the Student Loan Forgiveness Act Could Mean for You

Mon, 10/01/2012 - 09:08 | 2844586 Antifaschistische
Antifaschistische's picture

I'm okay with with voluntary....I'm even okay with caveat emptor...but who's the buyer here?   I say the lender is the one who should "beware".  The burden should be shared by the lender to do everything they can to make sure this kid gets a marketable education thus helping to ensure payback.   When there is no marketable education, there is no payback.  period.

School, to absorb all the kids who should not even be in college have created all these fluff degree programs just to give them a chair to sit in to justify their debt.   This is absurd.   Schools that do not create a market for their degreed graduates should be penalized with lower (to zero) student loans eligible for that degree field.

Mon, 10/01/2012 - 09:23 | 2844651 aerojet
aerojet's picture

One thing you learn in philosophy class in college--morality doesn't mean a damn thing.  Whose morality?  Where?  Morality is completely situational.  Everything you get taught is how flimsy morality is, which is correct.  Now, if you want to talk about ethics, that's another issue.  They still don't care, though.  They practice situational ethics, too.

Mon, 10/01/2012 - 10:42 | 2844983 RiverRoad
RiverRoad's picture

The lenders--our banking friends--aren't stupid; they profit handsomely with this scheme.

Mon, 10/01/2012 - 08:41 | 2844466 duckhook
duckhook's picture

Just wrote a check for one semester of college ($28,500).One effect of this is that i have cut my discretionary spending almost to zero.Many students now graduate with degrees that qualify them fro work at Starbucks.There are so many subjects now taught at colleges that are utterly useless and are taught only because of government mandates.

Mon, 10/01/2012 - 09:24 | 2844660 aerojet
aerojet's picture

Dude, that is completely ridiculous.  There is nothing you can't learn better on your own with that kind of coin.  I hope you're going to MIT or Caltech or something...

Mon, 10/01/2012 - 09:30 | 2844689 Red Raspberry
Red Raspberry's picture

Starbucks at least has benefits for their employees.  :)

Mon, 10/01/2012 - 08:42 | 2844469 GreatUncle
GreatUncle's picture

Those "Nobel-prize winning economics professors" need to realise if you are going to use Keynes then every other nation in the world must use it to and at the same rate.

If not you end up with a disparity of over or under inflated economies.

China - under inflated. The west - over inflated.

The cost is then pulled to the under inflated line (students incomes) relative to the asset over inflated line (tuition costs). Then through lack of affordability you get a contraction all kept going with money trees. 

Keynes having been used for so long now is in everything we touch. I bet he never realised he would be a plague on economies. 

Mon, 10/01/2012 - 08:46 | 2844482 Frastric
Frastric's picture

Where is MillionDollarBonus when you need him to defend the ivory towers of academia?

Mon, 10/01/2012 - 08:57 | 2844547 Isotope
Isotope's picture

My undergrad, Case Western, 1974-78:

Tuition: Then- $2,600  Now- $40,120  15.4 X increase

Room and board: Then- $2,600  Now- Approx. $18,800  7.2X increase

I could not afford to attend this college today. Not even close.

Mon, 10/01/2012 - 10:19 | 2844893 foodstampbarry
foodstampbarry's picture

Sure you could! You'd just have to spend the rest of your life with bill collectors calling you at 2 a.m.

Mon, 10/01/2012 - 09:27 | 2844672 Antifaschistische
Antifaschistische's picture

Here's my proposal..

Break down all school by degree programs.

If a school can only place 90% of it's graduates into jobs, in their degreed field, then the school can only receive up to 90% of tuition/room/board loans for students in that degree field.

If a school can only place 20% of their graduates into jobs in there degreed field then they are only eligible for 20% loan rates.

There are some schools that place near 100%....good for them.  

If you want to get a degree in Panamanian Art then I completely support that, but you pay cash for that degree.

If you go to a school that's places it's Panamanian Art majors in museums around the world then you're loan eligible.

Yes, this means we'll have to have an annoying audit process, and it will be gamed like everything else.  but it's a starting point.

Mon, 10/01/2012 - 10:28 | 2844936 MachoMan
MachoMan's picture

How about we eliminate subsidy, what you're actually intending works out the same, and we don't have to account for unforseen moral hazard.

Mon, 10/01/2012 - 09:51 | 2844770 Stuck on Zero
Stuck on Zero's picture

In 1970 tuition at the University of California was $106/quarter.  It is currently $4700.  Of course, the classes are much more crowded now and the quality of the education has declined.


Mon, 10/01/2012 - 11:23 | 2845157 hockeypuck777
hockeypuck777's picture

University of Michigan 1972  $696.00 a year for in-state.

Mon, 10/01/2012 - 09:58 | 2844806 Monk
Monk's picture

Actually, that's not Keynesianism.


Mon, 10/01/2012 - 10:58 | 2845065 Sizzurp
Sizzurp's picture

Ironic that in the end it's going to be the tax payers that end up stiffed from all the student loans in default.  These loans that were made to pay off the bloated corrupt Universities, and their tenured professors that spout on about the wonders of big government.  This chart looks just like the housing price chart a bit before the crash.  I suspect we will see a lot of these schools go out of business at some point as the easy credit dries up and students just say no to this crap.  I mean it's not like that piece of paper guarantees you anything at this point, and soon the loan default rate will get so large that even big government won't be able to paper it over.  When you think about the Fed printing money to finance bad student debt...well you realize just how screwed up the system really is.  They are clinging to the delusion that things will get back to normal.  They couldn't be more wrong.

Mon, 10/01/2012 - 11:10 | 2845099 Skip
Skip's picture

We let mortgage people, credit card people, go bankrupt yet the people going back to school trying to get an education so they can get a job in nation that sent the other jobs overseas or outsourced or Affirmative Actioned, or VISAed away, get BURIED under debt because even 3rd rate universities charge more and more for tuition and textbooks cost on average about $150 a book. Let me tell you about someone close to me, gets the anthropology book, which is essentially, WHITE = BAD, non-White = GOOD, from the previous semester, but the BITCH COMMIE PROF, uses the NEXT edition, the SOLE change is pagination, that is it, so the $100 spent on the used text, NO GOOD says Comrade Prof, HAVE to buy the new one, again nothing but pagination, so have to spend ANOTHER $165 buying the MFer. So you pay through the ASS and then sit there being told Whites are the DEVIL and minorities are HANDED privileges and so forth and you ask  yourself, WHO IS GETTING SCREWED HERE? And you have the answer already.  If the MFing BANKSTERS can get SEVEN TRILLION DOLLARS of our taxpaying suckers money, which we all are, then MAYBE just MAYBE the government should permit FORGIVENESS on these SCAM STUDENT DEBT, because the teaching jobs are going to Jose and Juanita and LaDorian and Jamila who get a ride, see Bill Gates' MILLENIUM SCHOLARSHIPS...all the way to PhD.

Bill Gates Millenium Scholarships
"Students are eligible to be considered for a GMS scholarship if they: • Are African American, American Indian/Alaska Native, Asian and Pacific Islander American, or Hispanic American;"

"The goal of GMS is to promote academic excellence and to provide an opportunity for outstanding minority students with significant financial need to reach their highest potential by:

Reducing financial barriers for African American, American Indian/Alaska Native, Asian Pacific Islander American and Hispanic American students with high academic and leadership promise who have significant financial need;"

The “Hispanic Scholarship Fund” (HSF) says that it “aims to put a degree in every Latino household by 2025” through its affirmative action program in college recruitment.

Funding for the HSF comes from a large number of corporations, which, according to that organization’s website, include the FedEx Corporation; the Mazda Foundation; KLASS Time; GMAC Financial Services; Lowe’s; the McNamara Family Foundation, Inc.; Goldman Sachs; Procter & Gamble; Toyota Motor Sales U.S.A., Inc.; the Verizon Foundation; McDonald’s; Target; the Morgan Stanley Foundation; Nissan North America, Inc.; the Sallie Mae Fund; Wells Fargo; the Draper Family Foundation; the Shell Oil Company; the Wachovia Foundation and the UPS Foundation, amongst many others.

The HSF says specifically that it is only for “Latinos” and those of Hispanic descent.

It obviously does not concern these corporations in the slightest that their money is used specifically to exclude white Americans from support.

On the HSF’s website, under their “Frequently Asked Questions” section, the policy is spelled out in no uncertain terms:

Do I have to be Hispanic/Latino to apply?” is the question the website asks.

The answer is: “Yes. You or your family must be descended from at least one of the following countries: Spain, Mexico, Guatemala, Honduras, El Salvador, Costa Rica, Nicaragua, Panama, Colombia, Venezuela, Ecuador, Peru, Argentina, Chile, Bolivia, Uruguay, Paraguay, Cuba, Puerto Rico, or the Dominican Republic. Students from Brazil are eligible to apply. However, students from Belize, Guyana, Suriname, and French Guiana are not considered Hispanic.”

Do NOT follow this link or you will be banned from the site!