Student Loans

Old People Are Disgusting. Stop.

“It almost always happens that when the immediate consequence is favorable, the later consequences are disastrous, and vice versa.” -Bastiat

Let’s stop pretending that there are no negative consequences for what we’re doing.  Life is not all peaches and good intentions.  There are actual consequences in life that no amount of good intentions can correct.

There is a severe shortage of truth in this county, and an even shorter supply of people willing to accept the truth.  Instead we desperately cling to our delusions in and pretend that if we just believe hard enough, nothing bad will happen. Like the child who thinks hiding under the covers will protect her from any monsters lingering in the closet.

And please let’s stop saying that this policy would have worked “but for” this specific circumstance, and if we just do it all again it would work.  That’s the definition of insanity.  It is nothing but pure superstition.

You cannot honestly look me in the eye and tell me that we are not robbing from our young.  You cannot honestly believe that we’re not living a product of generational theft.  It is time that we had honest conversations about the choices we’re making as a country and what that means for our future.

Yes caring for our needy, healthcare for all, and free college sound awful nice, but how do you have a conscience and talk about these things like we’re not signing a blank check that will some day bounce.  You gaslighting bastards have stolen our futures and then continue to lie to us that the economy is recovering and that if we just work hard enough we’ll have the same wealth as our parents.

What is the single most thing hamstringing the  future?

Debt, debt, and more debt.  America has gotten into a bad habit of spending money that it doesn’t yet have.  We’ve been taking advances banking on a best selling album that flops worse than Paula.  This debt unfortunately isn’t going anywhere and will have to shouldered by millennial’s trying to make the best of an awful situation.

Things that our parents accomplished seem impossible if not downright wasteful.  Boomers might call us perennial children that are dragging our feet into adulthood, but they miss the ball and chain around our leg holding us back.

America is child’s play compared to many countries in the world with a 40% youth unemployment.  This a trend found all over the world, and it doesn’t speak well for the state of the globe.

Chart for Global youth unemployment
Global youth unemployment

Millennials where we at though? 

Will we wait until we are as broke and unemployed as our European peers?  Or maybe it has to get as bad as in Venezuela where you pay thousands of dollars for toilet paper and there are more people unemployed than employed.  There is nothing worse for a country than a bunch young people running around with nothing to do.

The problem is not that kids are not educated enough for work.  Millennials are the largest and most educated generation (if only we weren’t all majoring in pottery 🙄) in the U.S., yet we are facing an unemployment rate of 12.7 percent. Our generation is struggling to find good-paying jobs or start our own businesses due to regulatory barriers that are creating roadblocks to quality opportunities.

What’s worse is that the jobs we are getting are still averaging a salary of below $35,000. For those of you who think that’s enough, consider that Millennials earn 20 percent less than Boomers did at the same stage of life.  Of course we also face higher costs for everything so getting paid less plus paying more is really a drain on our youthful enthusiasm.

According to a new report from the Census Bureau, in 2016 the four common milestones of adulthood — getting married, having kids, getting a job and living on one’s own — were achieved by only 24 percent of adults by age 34.  The drain is sucking not only the money from our pockets but years from our lives as we struggle to keep up with the milestones set by our parents.

I don’t want to be the new Lost Generation.  The last one we had in America were a bunch of bitter hard nosed bunch that saw a World War and a great depression.  I just don’t want to see that kind of destruction here.  Ugh I don’t want to be the new hikikomori destined for unemployment and hopeless suicide.

We could stop and reverse course to make the best out of it if we acknowledge the truth of certain policies.  The first step is admitting you have a problem.

Colleges are stealing from us

The illusion of college education is getting tiring.  Do colleges really deserve all the money we pay them?  They got a good deal going, students are damn near forced to go to school, they take out loans, to pay for the higher costs and no matter if they can pay them back or not the school gets paid. College costs have risen much faster than average inflation for decades so these fat cats are sitting comfortable.  They can even up their tuition and the kids keep coming because the bank keeps giving non-dischargeable loans.

Total tuition and room-and-board rates for full-time undergraduate students at degree- granting institutions increased by 32% from the 2005-06 to the 2011-12 academic year.  They look at the student loan crises, the youth unemployment crises, and atrophy of education and just laugh.  Why care when you get paid?  Not only do they receive the loans, but they get their nice subsidies and grants from the Federal Government to keep fleecing the students.

Tuition chart

Here is what we need to do, limit subsidies that colleges are allowed to receive from the federal government, promot accountability for poorly-performing schools, and encourage alternative forms of education where the costs are not as high.

 

 

End the Federal Student Loan Program

In 1992, Congress increased the amount of money a student can borrow from the federal loan program with the reauthorization of the Higher Education Act. The act also enabled students defined as “in need” easier access to funding. Now we see student loans dominating the higher-education industry and accounting for 50% of all financial-aid packages.

The effects have been an astronomical increase in the amount of student loans held by the government.  From 1993 to 2006, the federal government’s student loan portfolio swelled, from $353 million to $109 billion, which amounted to 23% of total student loan debt.  If that that wasn’t enough the Federal Government passed “Ensuring Continued Access to Student Loans Act.” By 2010 the Federal Government owned 85% of loans.

What is to be done? The central problem is that students are borrowing too much to attend college. Since 2000, tuition and fees have increased 46% at private four-year universities and 94% at public ones, after adjusting for inflation.

I don’t know how you can expect students not to take out these great loans when they are following into the footsteps of our county. The US national debt is almost $19 trillion and continues to grow every day. And guess will have to pay the bill? Millennials. US consumer debt is approaching a record 20% of GDP, meaning we are spending more and more money just to pay for things we bought in the past.

And because the loans can’t be discharged through bankruptcy, lenders and schools don’t have any skin in the game so they will gladly throw large sums of money at 18 year olds.  There are cries that the Federal Government itself is profiting from the giant student loans we’re taking out.  According to the latest projections from the CBO, the federal government will earn about $127 billion over the next ten years from its recently acquired role as the direct provider of most student loans. The breakdown of these profits (CBO makes you do the math from tables that are here).  Of course the CBO is often wrong and always has it’s own agenda.

The program produces a profit because the interest rate paid by borrowers exceeds the federal government’s cost to fund those loans and administer the program. The figure also accounts for loan defaults and borrowers’ use of flexible repayment plans that tie monthly payments to their incomes.

“This is a profit-making machine for the Education Department,” said Chris Hicks, who leads the Debt-Free Future campaign for Jobs With Justice, a Washington-based nonprofit group. “The student loan program isn’t about helping students or borrowers — it’s about making profits for the federal government.”

Total student debt has doubled since 2007, according to the Federal Reserve — a group of federal regulators, policymakers and student loan experts worry that the nation’s economy will be restrained for years as monthly student loan payments take an increasing bite out of borrowers’ paychecks.

The share of 25-year-olds with student debt increased from 25% in 2003 to 43% in 2012, and over the same time period the average student loan balance among 25-year- olds with student debt grew by 91%. In 2012, for the first time in at least 10 years, 30-year-olds with no history of student loans were more likely to have home-secured debt than those with a history of student loans.

90+ day delinquency rates for federal loans have increased from less than 10% of all borrowers in 2004 to approximately 17% of all borrowers, even with increasingly lenient repayment and forgiveness options. The long-term impact on the federal deficit may prove problematic.

Over 43 percent of former students who borrowed from the federal government are in default, behind on their payments, or aren’t making payments on their federal student loans.

 

Are we the Heroes or are Lost?

Will Millennial’s help save this country or will we sink with it.  That is what should be going through every kids mind.  If we don’t help stop the leak we will all go down with this ship.  This means stop listening to people who tell you what to believe.  Stop going to colleges and feeding those fat cats. Stop blindly following a politician because they have are a Democrat.

It is time to realize that this world isn’t what we were made to believe.  We can no longer look at a law that’s dress pretty in good intentions and blindly believe it will work.  We can’t right off a Republican because they speak an inconvenient truth that doesn’t fit the make believe bubble that we were raised in.

The biggest FU to the old people that got us into this situation is the rising level of conservatism.  Not just personal conservatism but politically as well.

“We see areas where millennials are willing to spend, but overall, they’re not levering themselves up to make their dollars go further; they’re being much smarter and much more conservative about their balance sheets,” Drucker Mann said on a January episode of Goldman Sachs’

While our parents are living in the glory days of the liberal take over of America, Conservatives are creeping into the house and sleeping with their wives.  They have no idea what they’re in for.  I’m done with colleges and bogus student loans.  I’m done pretending that the world is the way it was when my mom was a kid.  It is just not reality.  It’s time to make laws that actually fit into reality.

 

Take a look at The Fourth Turning to understand how America is shaped generationally.

  • Amir

    Post Aug. 8th 2017

    1. The following was taken from a pro-Palestinian blog and answered by me:
    Israel steals important Jerusalem property deeds from Al-Aqsa
    MEMO | August 7, 2017
    During the closure of Al-Aqsa Mosque last month, Israeli occupation authorities stole important documents from Al-Aqsa Mosque relating to Jerusalem’s properties and endowments, Felesteen.ps revealed yesterday.
    Chairman of the Jerusalem International Centre Hassan Khater said that the Israeli occupation stole the documents from the “rooms, libraries, documentary archives” of Al-Aqsa Mosque when its forces were alone during the closure.
    “Through these documents, the Israeli occupation is putting its hand on the endowments, properties and real estate of Jerusalem’s endowment department,” Khater said, noting that the theft of these documents is a “real disaster”.
    He noted that these documents include “details, secrets, and signatures”, adding that more than 90 per cent of Jerusalem’s Old City is part of these endowments.
    Khater stressed that the “Israeli occupation’s ability to forge documents will harm the endowments of the city.”
    He also expressed his fears that the Israeli occupation would use these documents to help carry out its Judaisation plans in the holy city, noting that Judaisation is “the main battle” between the Palestinians and the Israelis
    seelistenunderstand, on August 8, 2017 at 4:04 am said: Your comment is awaiting moderation.
    Another silly lie of the sick Muslim lies industry. You,, lier Khater, should have brought a name of one, just one, a document that was “stolen”.Let me tell you and all your crowd in order to make them know who are you and your people: Israel did not touch a thing because everything is written and documented in the bible and afterward document. The problem is that you have no evidence and you try to establish your ownership of the holy places. So, you blame Israel for stealing the documents. It will not work. Take all the documents and make photocopies. No, you will not do it as if you do it you can never blame Israel for stealing documents that you never owned.
    Now, think about it and don’t think that the world will swallow your evil stories.

    2. Wher from this behavior of the Muslims come from? From the following and similar behavior: The Palestinian guides, that are free/entitled to guide tourists, including students from Palestine and abroad, tell them deviated history and their explanation is full of incitement and hatred. The Muslim guides tell their groups that “Israel behave to the Palestinians the way that the Germans treated the Jews in the 2nd world war”. They instruct this when they visit the “Yad Vashem” museum of the Holocaust. Only stupid people, like the Muslims, can believe it. They see the high standard of lives of the Palestinians. But they believe the guides as it suits the Muslim’s ideology and they like to hear it and to spread it further on. I want to believe that you the reader know the history of the holocaust and you believe Israel, not the Arabs.
    3. What Israel can do is to deny the right to guide from the rebellious guides. Then they will blame Israel in Unesco that Israel eliminated their income and Unesco will issue their resolution that Israel behaved impolitely. Why impolite? Because, they, the Unesco delegates support the Muslims. This is the story of the Muslims leading the world.
    4. Nada Amin was Iranian journalist that escaped from Iran to Turkey. SAs long as the relations between Turkey and Iran were moving on a unpaved surface, she could stay there. But, now, after the relations were improved, she was warned that Turkey is going to hand her to Iran, where she was sentenced to death. She escaped to Israel and got here political absorbed many refugees from all over the world. The problem is that nobody publicizes it. The only publication that Israel gets is that we kill Palestinians. This is right, but when and why and for what reason? Answers to these questions you will never get from Palestine.
    5. King Abdullah, of Jordan, visited Palestine yesterday. It was a quick one. 3 hours. Why he came there? Because he needs the Palestinian approval to reopen the Israeli embassy in Aman. Why he wants to reopen it? Because they got stuck with the entry visas to Israel in order to visit their relatives, but more important is to get medical aid in Israeli hospitals. It should be mentioned and explained that the Muslims need Israel more than we need their friendship. They are dependent on Israel. I will not go over the long list. I will just confirm that they can’t, like the Palestinians, survive a long time without Israel. Israel is the back of the king and the Palestinian leader. Without water, power, food Etc they can survive, the most, 6 months. The visit was very successful. They agreed to stand still with their relations with Israel, that they need more than we do.
    6. The Arabs blame Israel for everything. But now they started to give troubles to Europe. So, the German Bundestag members decided to submit the Bundestag a proposed resolution to take Palestinian and Lebanese terror organization to exclude of the law. It’s time that Germany and all other states will establish this kind of resolution in order to limit the action of the Muslims all over.
    7. In spite of all the hardships that the Palestinians and other Arabs try to give us, we expand our economy and build better relations almost all over. For example a Mexican company invested in Israel, by buying a drip irrigation factory for…………………..$1.16 billion. And, in addition, the factories, head quarter and the R&D will stay in Israel. How many stupid Arab states managed to build such factories, the largest drip irrigation system in the world. Just for your info, to let you understand the profitability of this company, so far, in 2017 the Ebitda is $135 million on a turnover of $980 million. China is buying for $40 million and India for $150 million. The interesting point is that all large states buy the Israeli drippers. Why cant they produce it by themselves? No, it is patented and it is sophisticated.
    8. The police statistics show a sharp reduction in agriculture crimes. I wrote about it last week. Today’s news talks about a kind of remedy that was developed by the Israeli police. The herd of bulls was stolen from the farm of the family of Ariel Sharon, the late Israeli general, and prime minister. It was detected and returned to the farm. This is due to new/different ways of working inside the police and with the citizens. The info and quick action are among the most important factors in the success.
    9. The following you don’t find in the Quran: Israeli students picked the 1st place in the Math Olympiad that took place, this weekend, in Bulgaria. 71 of the most famous universities in the world, 351 students participated this competition. So, I ask you, Muslims, why don’t you win in such events? Why you win only in cases of murder/destruction etc.
    So, please learn/study/imitate Israeli behavior and build instead of destructing spend your time in studying subjects that will help you to improve your lives. Murder/killing/beheading are excluded from the term of improvement.

    Please share the posts.

    In friendship

    Amir