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What Most Americans Don't Know About Student Debt

Tyler Durden's picture




 

Now that student loans, well over $1.1 trillion, are hitting fresh record highs as... well... daily as the S&P500, the Fed is finally getting concerned about the latest debt bubble it has blown (not so much in equities). So concerned, in fact, the New York Fed recently added questions about student loans in  its broad survey on consumer expectations to find out what people knew, or rather, did not know about this record debt mountain. We hope it was not shocked to learn that once again the bulk of Americans are taking on unprecedented amounts of debt without having a clue what the conditions are: accordint to the analysis, people don’t fully comprehend the ramifications of taking on student debt.

As Bloomberg summarizes, the survey covered 1,029 people, including those with and without debt. The shocking findings:

  • Only 28% of respondents knew that if student loans aren’t repaid, the U.S. government can garnish wages, withhold Social Security payments and tax refunds, and report the debt to credit bureaus.
  • Even more people—35%—incorrectly thought the government couldn’t do any of those things or said they didn’t know what the government could do.
  • Only 37% of those surveyed knew that students loans are extremely hard to shed in bankruptcy, a reality that differentiates student loans from other debts, such as mortgages and credit cards.
  • The survey found that people who have student loans know more about the consequences than those who don’t, and that’s even truer of those who have high debt loads. But about half of those with higher-than-average student debt didn’t have high comprehension of the issue.
  • The survey also found that fewer than one in five people under 55 years old were “highly literate” on the topic, even though they make up most current and future borrowers.

The findings should hardly come as a surprise: in 2012, Young Invincibles, an advocacy group, and the economic consulting firm NERA found (pdf) that 40 percent of current or recent graduates who got financial aid said they didn’t receive any counseling about their federal student loans, as required by law. Of those who did receive counseling, only a little more than half found it informative.

All of the above, naturally, is a pivot to the moment just after the student debt bubble bursts: then, just like with the housing bubble, the excuse will be the Americans, hardly with a gun against their head, did not understand what the "implications" of burying yourself to the neck in debt are. Which is why they did it. Which is why the entire system had to be bailed out. Or something like that.

It is good to see that nobody has learned any lessons from the recent past, as usual.

 

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Sun, 06/08/2014 - 12:55 | 4834362 snodgrass
snodgrass's picture

Serfs for life.

Sun, 06/08/2014 - 13:29 | 4834442 Pool Shark
Pool Shark's picture

 

 

Funny how these students are 'qualified' to attend college yet don't even have a basic understanding of the loans they're taking out.

Although I went to good (though public) schools from Kindergarten through undergrad, I never received a single lesson in how to balance a checkbook. But they did teach me 'social studies' and all about respecting foreign cultures. That was back in the 'bad old days.' I shudder to think what they're teaching (and not teaching) nowadays...

How about if we teach students a few basic life skills?

 

Sun, 06/08/2014 - 13:31 | 4834453 I am Jobe
I am Jobe's picture

Basic Understanding is not a qualification in Amerika. Get real will you.  Look around and you will see.  

Sun, 06/08/2014 - 13:37 | 4834468 Pool Shark
Pool Shark's picture

 

 

Sad, but too true.

Common sense has become an oxymoron...

 

Sun, 06/08/2014 - 13:43 | 4834482 Chris Jusset
Chris Jusset's picture

Student Loans are a MAJOR part of the fraud that is BUBBLE-USA ... why would this surprise anyone?

Sun, 06/08/2014 - 14:49 | 4834533 Stackers
Stackers's picture

GWBush made it where you could not write off student debt in bankruptcy court. Like IRS back taxes, student loan debts can not be written off unless you are basically homeless, unemployed and destitute. The Government and the Mafia always get their money in the end - one way or the other

Sun, 06/08/2014 - 14:53 | 4834627 CH1
CH1's picture

GWBush made it where you...

No! The Fedguv beast did that during the years when GW was the figurehead.

Bush, Obama, Nixon, Carter... tweedledee, tweedledum.

Mon, 06/09/2014 - 03:12 | 4836300 Doofus
Doofus's picture

It was the Carter administration that first excluded some student loans from bankruptcy protection, however it was Ronald Reagan who made the bulk of student loans exempt from bankruptcy protection in 1984.  

Sun, 06/08/2014 - 14:53 | 4834629 HenryHall
HenryHall's picture

THE SOLUTION IS EMIGRATION.

Even if the USA debt is pursued overseas, a bankruptcy overseas discharges the debt in the new country of residence.

Sun, 06/08/2014 - 16:34 | 4834812 pagan
pagan's picture

You hiding in the Amazonas.. The US gov. write your debt off with a drone.

Sun, 06/08/2014 - 14:53 | 4834630 americanreality
americanreality's picture

Its been that way ling before Bush.  Bush did authorize the garnishment of social security for S.L.s and made everyday bankruptcy that much more difficult.  Throw a saddle on the student body and crack that whip.

Sun, 06/08/2014 - 14:59 | 4834644 CheapBastard
CheapBastard's picture

"I didn't know that."

 

"But I know how to Tweet 24/7."

 

 

Sun, 06/08/2014 - 15:19 | 4834681 Never One Roach
Never One Roach's picture

They can garnish my 0.01% savings account yield.

Sun, 06/08/2014 - 18:29 | 4835114 I need Another Beer
I need Another Beer's picture

U r correct. I was in college from 09-12. I talked to the losers[people who could not pass a class]. They told me " They were living much better on student loans". It was a form of welfare they could not pass up.

Sun, 06/08/2014 - 18:31 | 4835119 I need Another Beer
I need Another Beer's picture

U r correct. I was in college from 09-12. I talked to the losers[people who could not pass a class]. They told me " They were living much better on student loans". It was a form of welfare they could not pass up.

Sun, 06/08/2014 - 14:23 | 4834566 nufio
nufio's picture

Logged in to comment. Americans should stop blaming schools for everything and start taking responsibility for teaching their kids. I am not saying the school system is the best, but what is lacking more is good parenting.

Sun, 06/08/2014 - 14:59 | 4834635 CH1
CH1's picture

Americans should stop blaming schools for everything

Nope!

The school system takes those children from their parents BY FORCE. You don't send 'em, large armed men show up.

You take the kids by force, you own the results.

Sun, 06/08/2014 - 15:55 | 4834739 NidStyles
NidStyles's picture

This is why reasoning with statists is almost impossible because they approve of using force to get what they want, and to them force equates to being right. 

Everyone here should look carefully at the comment you replied to. That way of thinking is why all of this criminality exists.

 

Sun, 06/08/2014 - 15:57 | 4834742 NidStyles
NidStyles's picture

You can not have good parenting when the most basic parenting concept is denied to them, education.

Sun, 06/08/2014 - 14:40 | 4834600 DanDaley
DanDaley's picture

That was back in the 'bad old days.' I shudder to think what they're teaching (and not teaching) nowadays...

 

About 80-90% of teachers and professsors are liberal-progressive-socialist statists, so they teach what they were taught and don't question. I tease a young social-studies teacher that I know with questions such as:

Who owns the Fed?

What is the petro-dollar / reserve currency?

When was the US Constitution overthrown?

How long can you be held in government detention without legal recourse?

 

He thinks I'm a conspiracy nut; I tell him he's brainwashed by 16 years of education.


Sun, 06/08/2014 - 14:57 | 4834638 americanreality
americanreality's picture

80-90 percent, huh?  Why is that do you suppose?  So we just need more "conservatives" in higher education.  That will fix things.  

Sun, 06/08/2014 - 15:34 | 4834699 DanDaley
DanDaley's picture

Why is that do you suppose?

 

For one thing, statists have a symbiotic and fetishistic relationship with public unions -something most conservatives find repugnant and therefore shy away from. Many conservatives would prefer not to work in education if they have to work in one of the gun-to-your-head-non-right-to-work states.

 

Another thing is that most liberals/statists are Democrats going way back, but these people have scant knowledge of the evil that their party has promulgated through the decades. One simple example is segregation, i.e., American apartheid, which was started by the US Supreme Court decision Plessy vs Ferguson in 1896, in which 7 Democrats overruled 1 Republican (Harlan of Kentucky), and thus began the 70 year nightmare for blacks. (Of course, then they finally had to "fix" the problem that they themselves had created -reading the writing on the wall in the '50s that they could be shut out of political power for a long time if they didn't find a way to pander to blacks and get them back on the plantation. Hence LBJs famous comment about the Great Society: "I'll have the n*****s voting Democrat for the next 100 years." Thus began the Free Shit Army and the destruction of the black family.)

 

When you tell liberals these things they can't/won't believe it -and find some bullshit way of absolving themselves and their hideous party of all wrongdoing. (Don't misunderstand, Republicans aren't much better now days, but at least hold to a defense of the 2nd Amendment in most states.)

 

In short, the statists in education suffer largely from hubris born of an ignorance in which emotion trumps reason just about every time.

Sun, 06/08/2014 - 15:59 | 4834746 NidStyles
NidStyles's picture

Just as many of you statists are Conservatives as well, or whatever you call that BS these days where you pretend to be part of something. 

Sun, 06/08/2014 - 22:32 | 4835833 StychoKiller
StychoKiller's picture

Have him search for "The Mandrake Mechanism..."

Mon, 06/09/2014 - 09:07 | 4836650 DanDaley
DanDaley's picture

Yes, it all begins with debt. Griffin is a great resource.

Sun, 06/08/2014 - 16:23 | 4834793 G-R-U-N-T
G-R-U-N-T's picture

"How about if we teach students a few basic life skills?"

Can't do that because then they may develop critical thinking skills which would interfere with the States ambitions of total totalitarian control!

As long as they remain dumb shits allowing the State to run their lives, Statists don't have to worry about dissent!

Sun, 06/08/2014 - 13:32 | 4834457 dobermangang
dobermangang's picture

Here's a sampling of some student loan horror stories:

http://www.businessinsider.com/students-loan-debt-horror-stories-2013-6?...

http://www.bankrate.com/finance/student-loans/student-loan-horror-storie...

http://www.denverpost.com/opinion/ci_20808441/student-loan-horror-storie...

Hard to feel sorry for a guy that takes out 100k worth of loans for a Jazz Guitar degree.  

Mon, 06/09/2014 - 01:40 | 4836230 SilverRhino
SilverRhino's picture

Wow those guys are fucked.

It would cheaper to just emigrate, build a new I'D and come back to the USA as an illegal immigrant.

Sun, 06/08/2014 - 13:47 | 4834492 TrustbutVerify
TrustbutVerify's picture

Just as they want to be.

Sun, 06/08/2014 - 14:30 | 4834582 Smegley Wanxalot
Smegley Wanxalot's picture

Serfs maybe, and student lones suck, but thinka all da smartz deyz gotz 4 da money!

Sun, 06/08/2014 - 15:26 | 4834694 Kirk2NCC1701
Kirk2NCC1701's picture

Do they have college classes for this issue?

;-)

Sun, 06/08/2014 - 12:58 | 4834367 foodstampbarry
foodstampbarry's picture

Serfs up bitchez.

Sun, 06/08/2014 - 13:00 | 4834371 LetThemEatRand
LetThemEatRand's picture

“If you think nobody cares if you’re alive, try missing a couple of [student loan] payments.”

-Earl Wilson (paraphrasing)

Sun, 06/08/2014 - 13:00 | 4834372 dobermangang
dobermangang's picture

If you don't understand the ramifications of the student loan agreement, you're probably not college material in the first place.

Sun, 06/08/2014 - 16:01 | 4834750 NidStyles
NidStyles's picture

Yeah that's right, let them get eaten as long as it isn't you right?

Sun, 06/08/2014 - 13:01 | 4834378 Greenskeeper_Carl
Greenskeeper_Carl's picture

My wife has a good bit of student loan debt, before we met. She only works part time now, and my concern is that they come after my assets at some point in the future.

Sun, 06/08/2014 - 13:05 | 4834391 LetThemEatRand
LetThemEatRand's picture

Some states protect joint marital assets from collection of pre-marriage student loan debts, others don't.   

Sun, 06/08/2014 - 13:34 | 4834460 I am Jobe
I am Jobe's picture

Leave the USSA

Sun, 06/08/2014 - 15:33 | 4834706 Kirk2NCC1701
Kirk2NCC1701's picture

I give the same advice to "commoners", that expensive lawyers give to the Rich or Famous:  "GET A PRENUP!"  Else you and your money will soon be parted.

Ignore this advice (for emotional rather than rational reasons) at own peril. - Kirk out.

p.s.  If you REALLY want to know if that girl truly loves you for yourself, just try floating a prenup and watch her reaction:  Watch her body language first (eyes, face, body) and then her words (tone, pitch, attitude, content).  She'll tell you everything you need to know, but maybe not what you want to know.

Sun, 06/08/2014 - 13:02 | 4834379 q99x2
q99x2's picture

That is why it is important to turn your homework in on time and get good grades.

So your scholorships and EBT pay for everything. And then when a banker asks you for a loan you can spit on the low dwn stinkin creature.

Sun, 06/08/2014 - 13:12 | 4834402 ElvisDog
ElvisDog's picture

I don't think you're living in the now. Here is situation in 2014 (and I know first-hand because I have a child in college).

The price of college as skyrocketed, but the amount of most scholarships has not. Most scholarships are in the $500-2000 range. That's better than nothing, but doesn't really make a dent in annual college costs (tuition + room and board) that probably average $25-30K a year. To pay for college with scholarships, you would have to get a lot of them.

Second, the income cut-off for need-based financial aid is low. Basically, they expect you to contribute 25% of your pre-tax income to the cost of tuition. So if you earn $80K a year and your child's college tuition is $20K, you get nothing in terms of need-based financial aid. And that 25% doesn't count room & board, books, etc.

So, it's basically impossible for middle-class families to send their kids to college without taking out student loans. In fact, the entire higher-education system is built to force people into debt if they want to send their kids to college.

Sun, 06/08/2014 - 13:22 | 4834429 fzrkid
fzrkid's picture

Ok so here is a thought. If all the middle class families decide not to send their children to college because it is too expensive then the colleges will lower the tuitions costs.

 

But instead like most other uhmarikahns just borrow the money which in turn raises the prices.

 

Pathetic really, a student is supposed to be college material but cannot understand the basic principles of funding their education with debt..

Sun, 06/08/2014 - 13:36 | 4834465 I am Jobe
I am Jobe's picture

Must support the stupidity , you know keeping up with the Darshians and all. 

Sun, 06/08/2014 - 16:06 | 4834762 NidStyles
NidStyles's picture

You honestly think market principles would be allowed to work here? The .guv types would just push for subsidizing those tutions even more than they already do, unless you seem to have forgotten what these student loans actually are, subsidies for the academic priesthood that speaks for the state..

Sun, 06/08/2014 - 14:12 | 4834547 l8apex
l8apex's picture

How about some specific numbers?  And assuming they're so high, why did your kid go to that school?  

I went to the University of Utah.

Annual 2014-2015 resident undergrad full time tuition and fees = 7166, room/board 10,746, books = 1280, misc = 3996, transport =1098.  Total = $24,360.  And of that total, less than 8500 are direct school costs. 

Put the kid to work through the summer, save up about $5k...

 

Sun, 06/08/2014 - 16:07 | 4834764 NidStyles
NidStyles's picture

So only $19K of debt they can't find work to pay it off with..

Sun, 06/08/2014 - 20:14 | 4835387 ElvisDog
ElvisDog's picture

Right, but it's really the total that is meaningful. Don't know what your income is, but you have to come up with $24K a year to go to college. Even if your (or your parents') income is $100-150, it's hard to come up with $24K cash every year.

Plus, Utah is an outlier, I live in WA. The University of WA for residents of WA is about $12.5K for tuition. Add in $15K for room, board, and everything else and your're talking $27.5K and if you make more than $50K a year, you get no need-based financial aid.

And that's an in-state tuition rate. If you go anywhere out of state, you can pretty much count on $30-40K for tuition alone.

Sun, 06/08/2014 - 13:04 | 4834383 29.5 hours
29.5 hours's picture

 

 

Most Americans have no idea how vicious the American government can be. This is the basis for the ignorance we have on this issue. Anyone faced with these facts wants to reject the possibility.

If our government can act with such ruthlessness and stupid brutality towards its own youth in normal times, how much worse can we all expect when the government begins to feel threatened?

 

 

 

Sun, 06/08/2014 - 15:15 | 4834675 jerry_theking_lawler
jerry_theking_lawler's picture

If people would simply figure out that these CEOs, politicians, and other leaders are wealthy for one reason only (that is fleecing them and the system) then they would stop participating in the system. The .gov is just part of the game that, on the university level, includes federal grants/loans/etc and has overtaken the entire system.

I know it may be tough for a parent but I would advise a 2 year technical degree for anyone that can't get a full scholorship. Learn a skill or trade and get them a job. If they want to 'spread their wings' and learn or do something else...then they are free to do it....on their own dime or credit.

Stop the madness. Don't participate.

Sun, 06/08/2014 - 13:05 | 4834385 Cognitive Dissonance
Cognitive Dissonance's picture

The (ignorant) silence of the lambs........to slaughter.

Sun, 06/08/2014 - 13:04 | 4834386 ElvisDog
ElvisDog's picture

I think there is a widespread implicit belief among young people that their student loans will be forgiven en masse at some future date. Obama keeps hinting at that outcome. May just be a ploy among TPTB to draw more suckers into debt serfdom.

Sun, 06/08/2014 - 13:12 | 4834404 First There Is ...
First There Is A Mountain's picture

To some extent it already is being forgiven. Become a social work, get a write done after 10 years....something to that effect. And the rest? We'll, they will see massive debt forgiveness at our expense. Silly me, going to a state school, taking out manageable loans and paying them back in full after 5 years.

Sun, 06/08/2014 - 15:02 | 4834650 americanreality
americanreality's picture

State school?  When, 1962?  You have an extremely poor grasp of the situation. Must be your 1962 state school education. 

Sun, 06/08/2014 - 15:54 | 4834737 First There Is ...
First There Is A Mountain's picture

You mean Colorado School of Mines? A school that daily laughs off dispshits like you. 

Sun, 06/08/2014 - 16:10 | 4834773 NidStyles
NidStyles's picture

Not everyone want's to stare at rocks all day.

Mon, 06/09/2014 - 00:15 | 4836104 StychoKiller
StychoKiller's picture

Meh, if ya wanna stare at pr0n all day, get a job at the SEC! :>D

Mon, 06/09/2014 - 00:39 | 4836162 Citxmech
Citxmech's picture

Totally off-topic, but I checked out "Hellstom's Hive" on your recommendation.  Pretty darn good read - thanks for the tip!

Sun, 06/08/2014 - 13:04 | 4834388 orangegeek
orangegeek's picture

just another way to create wealth concentration - indebtedness

Sun, 06/08/2014 - 13:05 | 4834390 Kreditanstalt
Kreditanstalt's picture

Not economics students, I guess...

Sun, 06/08/2014 - 13:35 | 4834462 Pool Shark
Pool Shark's picture

 

 

Oh, I'm not so sure...

Remember; Keynes, Greenspan, Bernanke, Yellen, even Turbo Tax Timmy all studied economics at one point...

 

Sun, 06/08/2014 - 14:11 | 4834540 Slave
Slave's picture

All my econ classes in college only taught Keynes. I had to figure his fraud (and the college's) out on my own.

Sun, 06/08/2014 - 13:38 | 4834471 Matt
Matt's picture

Not accountants. If they're studying Keynesian Economics, they probably think spending the rest of their life paying interest on their debt isgood for the economy.

Sun, 06/08/2014 - 14:30 | 4834583 DerdyBulls
DerdyBulls's picture

@Kreditanstalt - "Not economics students, I guess..."

Why not? Debt spending solves all problems and creates a prosperity. That's what I got in debt for to learn in college.

Sun, 06/08/2014 - 13:10 | 4834394 buzzsaw99
buzzsaw99's picture

student loans are just one moar way the big banks sponge off the gubbermint risk free.

 

the us gubbermint busts ballz to collect for the banks, and pays off if they can't collect. nice.

Sun, 06/08/2014 - 13:11 | 4834401 Stuck on Zero
Stuck on Zero's picture

If the government ended the student loan program colleges would be forced to become competitive.  Students wouldn't be forced to take out loans in the first place. 

Sun, 06/08/2014 - 13:19 | 4834411 buzzsaw99
buzzsaw99's picture

students are forced to take out loans? if a young person is too poor, stupid, or lazy to get a scholarship or grant, or work or whatever they need to consider the possibility that college isn't for them.

Sun, 06/08/2014 - 13:55 | 4834509 RafterManFMJ
RafterManFMJ's picture

Many students are too white, or too male to get a scholarship or grant.  In general, you cannot be 'too poor' to get a scholarship or grant, but you can be too 'middle class.'

Go to school in Europe - then stay there would be my advice.

Why contribute to your own enslavement?

The wife advised me we need to start saving for our daughter's schooling; I laughed and advised her if she wished to do so to get a job.  Should the desire for University arrive, she'll go to Canada, Europe, or Singapore for schooling, she'll earn a free ride stateside, or she won't go at all.

Furthermore, if your kid is under 5, expect to see about 1/2 of Amerika's schools bankrupted before they reach 18, and a real deflation in tuition.  Online schooling is just getting started and will, one way or another, be as disruptive to education as the Atomic Bomb was to warfare.

Sun, 06/08/2014 - 15:05 | 4834660 americanreality
americanreality's picture

Fuck you, you worthless piece of trash.  Try understanding the situation.  I'm sking a lot, I know. 

Sun, 06/08/2014 - 15:20 | 4834682 buzzsaw99
buzzsaw99's picture

damn how much did you borrow anyway? it sucks to be you.

Sun, 06/08/2014 - 15:57 | 4834743 First There Is ...
First There Is A Mountain's picture

This clown keeps assuring us he has a grasp of the situation when the only thing he's clearly grasping is his 6 ft. Graffix. Help us understand the situation already, would you guy? lol

Sun, 06/08/2014 - 13:14 | 4834408 syntaxterror
syntaxterror's picture

The FSA is counting on Slender Man to abolish all student loan debt.

Sun, 06/08/2014 - 13:20 | 4834422 buzzsaw99
buzzsaw99's picture

yeah right, nobody hates young people moar than owebombaCARE

Sun, 06/08/2014 - 16:14 | 4834775 NidStyles
NidStyles's picture

Who brought up Obama? Slenderman is not Obama.

Sun, 06/08/2014 - 15:21 | 4834686 jerry_theking_lawler
jerry_theking_lawler's picture

I'm OK with this is they would set a base needed to get people out of debt and give that amount to every American. Just give away a big wad of money to everyone to erase your debt. I'm perfectly fine with it....will convert mine PMs immediately upon receipt. But giving money/relieft to special groups (student loans, bad mortgages, etc) is just unAmerican...haha. Can't believe I just wrote this whole comment....just vomited in my mouth.

Sun, 06/08/2014 - 16:29 | 4834434 Uncle Remus
Uncle Remus's picture

Please tell me you're Jack's complete lack of surprise.

 

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.” Mark Twain

 

EDIT: fixed "you're" for "your", D'oh!

Sun, 06/08/2014 - 13:28 | 4834435 XitSam
XitSam's picture

"Tomorrow, President Obama is announcing new steps to help millions of Americans pay off their student loans"

http://www.nytimes.com/2014/06/08/us/politics/obama-plans-steps-to-ease-...

More "executive actions" without approval of congress. And nothing about how government created the problem and then made it worse by making the loans unavoidable in bankruptcy.

Sun, 06/08/2014 - 13:30 | 4834450 I am Jobe
I am Jobe's picture

POTUS  will provide Vaseline and Kllen Wipes.

Sun, 06/08/2014 - 13:46 | 4834486 Uncle Remus
Uncle Remus's picture

"If you like your prostate..."

Sun, 06/08/2014 - 13:27 | 4834436 syntaxterror
syntaxterror's picture

Slender Man on Monday will take executive actions to ease the burden of college loan debt for potentially millions of Americans, in a White House event coinciding with Senate Democrats’ plans for legislation to address a concern of many voters in this midterm election year.

Before an East Room audience, Slender Man is scheduled to announce “new steps to further lift the burden of crushing student loan debt,” said a White House official, who declined to be identified describing the actions in advance of the president’s event. Despite past actions by the administration, borrowers’ debt load is growing and retarding the ability to buy homes, start businesses or otherwise spend to spur the economy, economists say.

Slender Man’s main action will be to expand on a 2010 law that capped borrowers’ repayments at 10 percent of their monthly income. The intent is to extend such relief to an estimated five million people with older loans who are currently ineligible — those who got loans before October 2007 or stopped borrowing by October 2011. But the relief would not be available until December 2015, officials said, given the time needed for the Education Department to propose and put new regulations into effect.

http://www.nytimes.com/2014/06/08/us/politics/obama-plans-steps-to-ease-...

Sun, 06/08/2014 - 13:27 | 4834439 HughJanus
HughJanus's picture

Everybody's gone serfin'
Serfin' U.S. A.

Sun, 06/08/2014 - 13:28 | 4834443 ThisIsBob
ThisIsBob's picture

If colleges, et al., really cared about educating kids, they would teach them first about the dire consequences of debt.  But no.  Instead that have those  freiendly student loan offices... and who gets the money?

Sun, 06/08/2014 - 13:28 | 4834444 stinkhammer
stinkhammer's picture

All that student debt didnt make 'em any smarter I guess

Sun, 06/08/2014 - 13:29 | 4834447 I am Jobe
I am Jobe's picture

Nope neither did going on Spring Break and posting pictures on FuckBook. 

Sun, 06/08/2014 - 13:28 | 4834446 I am Jobe
I am Jobe's picture

Amerikan Inbreeding alive and well. Parents, Kinds, Grandkids, let the Slavery begin, meant continue. 

Sun, 06/08/2014 - 13:30 | 4834451 GrinandBearit
GrinandBearit's picture

The jobs are never coming back.  Companies are doing more with less people... this is the new normal.  

The government will have to forgive all this debt.

Sun, 06/08/2014 - 13:32 | 4834456 I am Jobe
I am Jobe's picture

Or start Gay Bars and whore Houses at NFL, NBA, and MLB games.  

Sun, 06/08/2014 - 13:33 | 4834458 GrinandBearit
GrinandBearit's picture

I heard the porn industry is hiring.

Sun, 06/08/2014 - 13:37 | 4834467 I am Jobe
I am Jobe's picture

Yes they are and Pentagon /SEC/ EPA all support the PORN Industry . 

Sun, 06/08/2014 - 13:30 | 4834452 Fix It Again Timmy
Fix It Again Timmy's picture

The US government cuddles and condones financial terrorists as they plunder the land...Is this a great country or what?.....

Sun, 06/08/2014 - 13:36 | 4834466 Spungo
Spungo's picture

"If you don't understand the ramifications of the student loan agreement, you're probably not college material in the first place."

Government loans to the rescue. Without government, private lenders would want to talk to you and your parents. They want to know if you can pay this money back. The government doesn't do any of that. Due dilligence is considered racist even if most of the applicants rejected are white, so we get a policy where anyone gets a loan. You're white trash with a meth problem? Approved! You just got out of jail and you're a car thief? Approved!

I don't pin the blame on uninformed people. The market is supposed to provide checks and balances. A prudent lender would never lend to an uninformed person, so uninformed people shouldn't be a problem. The government is not a prudent lender, so this will end in disaster.

Sun, 06/08/2014 - 13:38 | 4834470 I am Jobe
I am Jobe's picture

Wait a minuite here, you are talking logic, wtf, r u nuts, in Amerika, the inbred fucks applying logic. 

Sun, 06/08/2014 - 13:45 | 4834477 LetThemEatRand
LetThemEatRand's picture

TPTB have certainly created a nice little trap for our young people.  They've shipped most of the decent manufacturing jobs overseas, and blue collar jobs in general are either gone foreover or pay less (in inflation adjusted terms) than at any time in modern history.  Gone are the days of the steel worker providing for a family of four.  But going to college to escape the blue collar world will land most kids in debt serf hell for most of their adult lives, and even then the college degree is hardly a reliable ticket to a good paying gig these days.   The student loan problem is a symptom of a economy in general decline, if not outright slow motion collapse.  It is a glaring example of the bankers sucking the last bit of wealth out of the middle class.

Sun, 06/08/2014 - 13:43 | 4834479 Ancestor
Ancestor's picture

I guess it was only a matter of time before someone picked up on the idea of securitising human beings. HBS* (Human Backed Securities) coming soon to a debt portfolio near you.

 

*May or may not be affiliated with Harvard Business School

Sun, 06/08/2014 - 18:16 | 4835087 Aussiekiwi
Aussiekiwi's picture

I like it, do we get to check their Teeth first, I don't want to get stuck with any inferior ones in my portfolio.

Sun, 06/08/2014 - 13:52 | 4834502 TrustbutVerify
TrustbutVerify's picture

Watch for student loans to be forgiven by an Obama Executive Action.  Its all about building government dependency - monetary and, more importantly, emotional. 

Sun, 06/08/2014 - 14:05 | 4834523 johnjkiii
johnjkiii's picture

We pretty much know how this ends. After a cascade of defaults/garnishments etc. the media gets nvolvd with the usual sob-sisters opining about how all these poor souls got tricked/deluded into thinking they'd get rich with a proper education and congress will hold hearings. Scapegoats will be found and a blue ribbon commission set up to study the problem. It will come to the shocking conclusion that those greedy college administrators were at fault, fines will be levied, no jail time of course, then we'll have a loan forgiveness fund set up to bail out the kiddies. Taxpayers will pay a reduced amount of the principal and life will go on.

Sun, 06/08/2014 - 14:10 | 4834539 MedicalQuack
MedicalQuack's picture

If you didn't pay your student loan, the government will come rip it out of your social security check too.

http://ducknetweb.blogspot.com/2012/08/government-chasing-social-securit...

Sun, 06/08/2014 - 14:11 | 4834541 Rubbish
Rubbish's picture

Seriously?

 

Full Retard.

 

Gold Bitchez...

Sun, 06/08/2014 - 14:23 | 4834562 Jack Burton
Jack Burton's picture

"serfs for life" someone said. Indeed! Couldn't have said it better. These students begin their early adulthood as totally enslaved to bankers. This makes them pliable in the work place and totally uncommitted to any political actions that could threaten their pressing needs to pay down the crushing debts of their education. So you have a perfect compliant worker and citizen. Debt slaves are perfect models of what the elites crave for their subjects. Once in debt, your whole life changes. Your freedom is a hoax, you are nothing but a person compelled to work to try and get those debts down. This debt also makes many ripe for military service where they hope to escape the pressing obligations of debt and earn money to get ahead on those debts.

The entire student loan scam was designed to make bankers rich and to make young Americans into perfect slaves for the masters. But what really angers me is the education industry that has expanded into a greedy money grubbing theft operation. Granted, many do get needed degrees and jobs, but these are for those going into professions, most go to college and get dubious degrees that millions of others have and for which there is little demand. We all know these degrees. "Criminal Justice", "Media Studies" "Psychology" "Comperative Literature" "Womoens Studies" "Black Studies" "Asian Studies" "Art degrees" "Photography".

I met a customer in my business, a girl and her husband, both 23 years old. They were both all excited about the girl just having gotten her degree and her soon to begin career. I said how nice that sounded. "What degree and career was she following?" "Photography".  She really believed that she was going to be a professional photographer and earn a living. Not only that, but tens of thousands of other girls graduate with that same degree! Now I was unsure that that type of degree even existed. But I asked my niece, and she said she took a bunch of photography credits in college.

Sun, 06/08/2014 - 16:56 | 4834661 29.5 hours
29.5 hours's picture

 

 

You neglected to mentioned the ubiquitous "Communications" and "Journalism" degrees being offered at just about every institution of "higher" education.

Years ago, at my former employer (based on computer tech), I was amazed at the number of new hires who had gone off to school to become newspaper reporters or television personalities, to end up applying for entry-level positions requiring only knowledge of personal computers.

But that was before the company decided even that level of competency was too much--and began to hire only cheap trade school grads from India. Same lack of basic commodity skills, with problems with English thrown in.

 

 

 

Sun, 06/08/2014 - 18:13 | 4835080 Aussiekiwi
Aussiekiwi's picture

Good on her for taking a photography degree, she is only 23, the real world reality of her degree will be a good lesson for her in how the real world works that may result in her making better decisions further down the track.

Sun, 06/08/2014 - 21:24 | 4835621 ricky663
ricky663's picture

My nephew is starting at UCLA this year and chose to major in "English."

* sigh *

The good thing is that he received a full scholarship.

Another nephew graduated "Construction Management" and he got a great job right out of the gate.

Our daughter graduated nursing, and is doing just fine.

I have observed that the character (or "drive," if you will) factors into a person's success, along with luck in many cases. So just because you have a "nothing" degree, that does not mean you will be unsuccessful.

Sun, 06/08/2014 - 14:34 | 4834589 Peter Pan
Peter Pan's picture

I suggest that passing a financial literacy test be a prerequisite to even getting into college let alone getting a loan.

Come to think of it, it might sound dangerous, but after having seen the quality of parents decline over the last 20 years, I think we owe it to the children that prospective parents ALSO be forced to undertake some mandatory parenting education.

At the end of the day I find myself asking WTF do these kids actually learn for the first 10 years of their schooling that actually gives them the skills to survive and thrive.

Sun, 06/08/2014 - 14:56 | 4834639 Zadig
Zadig's picture

WTF do these kids actually learn for the first 10 years of their schooling that actually gives them the skills to survive and thrive.

 

They learn that the Bushobama is always right!  In a perverse way, conditioning and a total lack of critical thinking are useful skills for surviving in a totalitarian society. 

Sun, 06/08/2014 - 14:37 | 4834597 Joebloinvestor
Joebloinvestor's picture

Maybe they can put some of that NCAA money to good use.

Sun, 06/08/2014 - 15:00 | 4834640 RaceToTheBottom
RaceToTheBottom's picture

I look for WS firms and the military to pay for many of their hires student loans.  The military will get the dumb ones and WS will get the ones that can add.

It solves two things:

1)  Fights the revulsion that people have towards working on WS.

2)  Allows the FED to fund the WS firms with printed money.  

 

Future inflation will fund it all anyway so it is all good right?

Sun, 06/08/2014 - 15:02 | 4834651 OC Sure
OC Sure's picture

And don't forget that any of the 1.1 trillion dollars that is loaned and is not represented by wealth to underwrite the loan, which would be all 1.1 trillion dollars since the US gov is in debt of over 70 trillion itself, hits the economy immediately and dilutes everyone's purchasing power as it permeates throughout the economy. This is the exchange of nothing for something and can only be accretive to the thieves.

Sun, 06/08/2014 - 15:17 | 4834666 Radical Marijuana
Radical Marijuana's picture

I liked the point that Pool Shark made above:

"Common sense has become an oxymoron."

In that context, I expect Bill Still's new film to be theoretically interesting, but practically pointless:

https://www.youtube.com/watch?v=rdnTlwLaRgs

Jekyll Island - The truth about the Federal Reserve (Trailer)

As Still points out, the basic problem of private banks making the public money supply out of nothing is SIMPLE FRAUD, and THEORETICALLY the simple solution is to stop them being able to do that. However, the more one learns, the worse it gets, because the Money As Debt system was made and maintained by the application of the methods of organized crime to the political processes, and the success of that that has resulted in a society which is shot through and through with enforced frauds.

Student loans are not an absolutely big factor in the overall picture. However, student loans are one of the most extreme symbolic manifestations of the social situation regarding debt slavery heading towards debt insanities, that money is actually based upon measurement backed by murder, and must necessarily be. That is not understood, and is not wanted to be understood, by the vast majority of the people, even including the small minority that wakes up to the social facts that private banks making the public "money" supply out of nothing as debts is the primary manifestation of that truth about what "money" really is, namely an enforced fraud, whose paradoxical successes depend upon government being organized crime.

The younger and poorer you are, the more you are being lied to, cheated and robbed by that political system you were born into (other than the tiny percentage who stand to inherit, but even then, they too actually inherent the social systems based on frauds). Young people are born into a society which is terminally sick, stupid and insane, due to its monetary system becoming an almost totally metastasized kind of social cancer, which is therefore practically untreatable.  Furthermore, the more they learn about that, the worse it will look, especially since they will actually learn that there are no practically possible solutions, but only a bunch of impossible ideals, which have no possible ways to ever be implemented.

It is theoretically possible that human beings could understand the world better, and therefore, resolve their problems better. However, in fact, the real world has become almost totally dominated by legalized lies, backed by legalized violence, which makes it impossible for the vast majority of people to perceive the deeper levels of the chronic political problems which should be resolved, because the superficial layers of the problems are that the government has become the biggest form of organized crime, controlled by the best organized gangs of criminals. Education is the way that society reproduces itself, and therefore, our current "education" systems are frauds, mostly paid for by frauds, in order to keep a system based on frauds going.

To begin with, the overwhelming vast majority of people do not understand that, and do not want to understand that. More importantly, the reactionary revolutionaries who propose "solutions" to that problem of the whole financial system having a foundation of enforced frauds tend to never provide the concepts for the required different death controls to back up the different debt controls, which are mandatory, after one faces the facts that the existing systems were actually due to the application of the methods of organized crime. Like Bill Still, the Black Sheeple try to point out to the Zombie Sheeple that the problem is relatively simple, and the theoretical solutions are relatively simple, and that without better resolutions of those problems, then everything will automatically get worse, faster.

However, the problem of society actually being controlled by the principles and methods of organized crime are NOT simple to really resolve in any better ways, especially since the vast majority of people do not understand those problems, because they do not want to understand them, which I sympathize with from a short-term practical point of view, since the ONLY thing that happens is that the more that one learns about those problems, the worse they always get! THAT IS THE NATURE OF VICIOUS SPIRALS THAT SOCIETY, AND ITS EDUCATION SYSTEMS, ARE TRAPPED WITHIN!  The foundation of the political economy is enforced frauds, and in order to participate in that system better, one needs an education which develops one's ability to operate within that context of enforced frauds, with all of the contradictions that causes, such as that "Common sense has become an oxymoron."

Students taking out loans are doing the best that they personally can, within their real circumstances, despite that being terrible from an overview of the longer term consequences for them and their whole civilization. The ruling classes have worked hard, for generation after generation to dominate the school systems and the mass media, in order to maintain the systems of enforced frauds that enabled them to become the extremely wealthy and powerful ruling classes that they have become, whereby they can control the government to enforce a wide variety of frauds which benefit them. There is practically nothing that young people could do, even IF they did wake up enough to learn some of the real social facts surrounding them. Given that, they feel better by staying ignorant, and so, they want to stay ignorant, because that is the context in which "Common sense has become an oxymoron."

It SHOULD be obvious to common sense that private banks making the public "money" supply out of nothing is FRAUD. However, since that has been the foundation for the whole economic system for more than a Century, while that fraud was enforced by the power of the government, everyone has necessarily adapted to have attitudes of evil deliberate ignorance towards that situation. The vast majority of people, including the students taking out those "loans" of more "money" made out of nothing as debts, have well-developed attitudes of evil deliberate ignorance towards those basic social facts, which SHOULD be obvious to common sense, but are NOT because that society has become terminally stupid, sick and insane, due to the triumphs of enforced frauds, which used carrots and sticks to persuade and force people to mostly not know about and feel that they did not want to know about the rational evidence and logical arguments which would indicate the actual nature of the real social facts: ENFORCED FRAUDS, where the force never makes those frauds become true, but rather, that force constantly drives the whole society to become crazier and crazier, so that, "Common sense has become an oxymoron."

Sun, 06/08/2014 - 15:18 | 4834679 James Dandy
James Dandy's picture

Had to down-vote the above.  Most muricans can barely read, much less a short book.

Sun, 06/08/2014 - 15:17 | 4834676 James Dandy
James Dandy's picture

'Murican Tards

Sun, 06/08/2014 - 15:22 | 4834687 Never One Roach
Never One Roach's picture

I guess a "work-study" program is out of the question these days.

It's no wonder so many of them have trouble finding a job afterward.

Sun, 06/08/2014 - 15:54 | 4834734 Frilton Miedman
Frilton Miedman's picture

 

 

 

" ... the bulk of Americans are taking on unprecedented amounts of debt without having a clue what the conditions are ..."

Operative word "conditions", one of the most influential variables is globalization, a student would have to foresee if, say, an IT, engineering or Tech degree is transferrable to a country where college education is Socialized.

I know more than my share of folks with computer science degrees that lost their jobs offshore to cheaper foreign professionals who don't have tuition factored into their wages, and have much lower costs of living.

 

 

Sun, 06/08/2014 - 16:47 | 4834858 robertocarlos
robertocarlos's picture

The student with too much debt could always live outside the system. The people living under bridges could use more doctors and lawyers.

Sun, 06/08/2014 - 18:08 | 4835066 Aussiekiwi
Aussiekiwi's picture

Possibly, but payment with Meth may cause some issues.

Sun, 06/08/2014 - 17:29 | 4834982 matrix reinvented
matrix reinvented's picture

Keep staring out of that class window, away from the distractions of the "t"eacher, that way you may start to realise who the real "T"eacher is.

Sun, 06/08/2014 - 21:00 | 4835525 libertus
libertus's picture

We choose to live with the amount of debt slavery taht we are willing to put up with. Get off the plantation and build the new way of learning. oplerno.com

Sun, 06/08/2014 - 21:01 | 4835528 tony bonn
tony bonn's picture

proving once again how stupid americans are....and these are college gradjeates. jethro bodine could outwit most of these stupid fucks.

on the other hand, the real villains are the politicians and communists who sold us this debt slavery....student debt should be dischargeable as any other debt. and after a limited period of default, the debt should should be considered a non performing asset and discharged totally and thoroughly...as complete zilch.

Sun, 06/08/2014 - 21:03 | 4835539 roadhazard
roadhazard's picture

Anyone that took a student loan after 08' has no intention of ever paying it back.

Mon, 06/09/2014 - 01:27 | 4836219 Muppet
Muppet's picture

Everyone posting seems to believe that students must re-pay.   I know students who simply walked away and ignored their student loans.  Calls were made to locate the students but after 2-3 years, attempts to collect simply stopped.   I'm not referring to Goverment loans, but rather loans from private, predatory, school-encouraged (kick-back) student-loan firms like "Iowa Student Loan Corporation". 

I have the impression that many students simply don't repay these loans but that bonds issued by these companies via WS keep the charade going good... until it doesn't.

Mon, 06/09/2014 - 04:42 | 4836344 JailBanksters
JailBanksters's picture

I knew that, but then I'm not an American.

What I don't know is, are they told the rules prior to the loan? or do they just ignore it

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