With all the talk about the financial cliff facing the USA, why is there no talk about the "student loan cliff"? The student loan program is just one more Do-Gooder program that is killing the USA rather than helping. If you are a "one mover" and only look at the first phase where the poor student gets free money, then you will not like what I have to say. If you are a "two or more mover", you will wonder why we are not talking about the student loan crisis. I do not consider myself a "one mover" so I look ahead at the end impact of programs like the student loan program.
Did you know that we have more public money owed on student loans than on credit cards and it is growing. Did you also know that the default rate on student loans is worse than on credit cards? Did you know that the total amount of student loans in default is greater than that on home loans? Why all the talk about homes being under water when the status of student loans is even worse? Did you know that? Did you know that the size of student loans has been growing faster than the earnings of graduates?
The bottom line is that the student loan program has been a bust. I think that you must know that the first step in solving a problem is to, "admit that you have a problem". This same principle applies to being over weight or a drunk. If you don't think the student loan program has serious problems, you can save your time by stop reading this bog.
Look at it this way. We have serious economic problems in the USA right now! That means we need to take corrective action now. How do student loans fit into this? Any investments in student loans will not help our economy for at least 20 years. Figure that the student loan starts at age 18 and it is not paid back until age 38. Only after the student gets to age 38 does the tax payer really start to get paid back on the "investment. It has to be clear that if we have a problems "now" that we need to focus on those things that will help "now", not 20 years from now!
This is just the first problem with student loans. An even more serious problem is the stupid degrees that our kids are getting. It is my estimate that at least 50% of the degrees are totally worthless when it comes to helping the economy. You know the degrees and it is the main reason that so many new graduates complain that they can not find "good" paying jobs that would allow them to pay back their student loans. The students made bad choices and us tax payers made a bad investments by loaning them the money for stupid majors. If they want to follow their "dreams", it should be on their own dime.
Isn't it strange that Obama is out proposing that we need more engineers and technical people to fill the many open technical jobs while we keep squandering our national wealth on student loans for worthless degrees. I blogged before that most of the advanced technical degrees are being earned by kids who were "not" born here. Our kids have been "Spocked" by Do-Gooder parents who do not require them to work hard or take the difficult classes in high school or college. I want to see some "pain" in our colleges. I want to flush the kids out with their professors who take and support all of these worthless majors.
Think of it this way. The money that we are loaning to our kids is money that we have had to borrow from China. Do you think it is worth it? The Chinese are smart and their kids are coming here to attend our colleges and earn the advanced technical degrees which are being paid for with the money that we borrowed from China. The bottom line is that we are borrowing money from China to train engineers for them. It would be like borrowing money from the bank and using it to pay the green fees for the bank president. That is what we are doing!!!
What do you think?
PS-------Why do you think Obama moved the administration of the student loan program from the Department of Education into the basement of the White House? Obama is a Judas who wants to destroy the USA. He and his wife both hate the USA, pure and simple and the student loan program is a double win. Squander our wealth and destroy the minds of our kids.
How about this point? If we loan money on a home or a car and the loan goes bad, we can liquidate the home or car and get all or part of our money back, but what can we do in he case of a student loan to get some of our money back? Student loans are one of the highest risk type loans. About 60 years ago, one of my uncles told me that, "you should never borrow money to buy food". I realized then that if the loan went bad, all you ended up with was #######. Think about it.
PS---I have been getting a lot of action on this blog, but I have a problem with why it has taken so long. Are the citizens of the USA so stupid that it takes this long for them to catch on?
PS---Now the student loans amount to $1.6 trillion and much of that is in default. I warned you about this and what was going to happen. Sorry. What do we have to show for this $1.6 trillion? My guess is that 90% of the people who took out these loans do not know how many zeros to put behind the $1.6 trillion. Sad isn't it?
Did you know that we have more public money owed on student loans than on credit cards and it is growing. Did you also know that the default rate on student loans is worse than on credit cards? Did you know that the total amount of student loans in default is greater than that on home loans? Why all the talk about homes being under water when the status of student loans is even worse? Did you know that? Did you know that the size of student loans has been growing faster than the earnings of graduates?
The bottom line is that the student loan program has been a bust. I think that you must know that the first step in solving a problem is to, "admit that you have a problem". This same principle applies to being over weight or a drunk. If you don't think the student loan program has serious problems, you can save your time by stop reading this bog.
Look at it this way. We have serious economic problems in the USA right now! That means we need to take corrective action now. How do student loans fit into this? Any investments in student loans will not help our economy for at least 20 years. Figure that the student loan starts at age 18 and it is not paid back until age 38. Only after the student gets to age 38 does the tax payer really start to get paid back on the "investment. It has to be clear that if we have a problems "now" that we need to focus on those things that will help "now", not 20 years from now!
This is just the first problem with student loans. An even more serious problem is the stupid degrees that our kids are getting. It is my estimate that at least 50% of the degrees are totally worthless when it comes to helping the economy. You know the degrees and it is the main reason that so many new graduates complain that they can not find "good" paying jobs that would allow them to pay back their student loans. The students made bad choices and us tax payers made a bad investments by loaning them the money for stupid majors. If they want to follow their "dreams", it should be on their own dime.
Isn't it strange that Obama is out proposing that we need more engineers and technical people to fill the many open technical jobs while we keep squandering our national wealth on student loans for worthless degrees. I blogged before that most of the advanced technical degrees are being earned by kids who were "not" born here. Our kids have been "Spocked" by Do-Gooder parents who do not require them to work hard or take the difficult classes in high school or college. I want to see some "pain" in our colleges. I want to flush the kids out with their professors who take and support all of these worthless majors.
Think of it this way. The money that we are loaning to our kids is money that we have had to borrow from China. Do you think it is worth it? The Chinese are smart and their kids are coming here to attend our colleges and earn the advanced technical degrees which are being paid for with the money that we borrowed from China. The bottom line is that we are borrowing money from China to train engineers for them. It would be like borrowing money from the bank and using it to pay the green fees for the bank president. That is what we are doing!!!
What do you think?
PS-------Why do you think Obama moved the administration of the student loan program from the Department of Education into the basement of the White House? Obama is a Judas who wants to destroy the USA. He and his wife both hate the USA, pure and simple and the student loan program is a double win. Squander our wealth and destroy the minds of our kids.
How about this point? If we loan money on a home or a car and the loan goes bad, we can liquidate the home or car and get all or part of our money back, but what can we do in he case of a student loan to get some of our money back? Student loans are one of the highest risk type loans. About 60 years ago, one of my uncles told me that, "you should never borrow money to buy food". I realized then that if the loan went bad, all you ended up with was #######. Think about it.
PS---I have been getting a lot of action on this blog, but I have a problem with why it has taken so long. Are the citizens of the USA so stupid that it takes this long for them to catch on?
PS---Now the student loans amount to $1.6 trillion and much of that is in default. I warned you about this and what was going to happen. Sorry. What do we have to show for this $1.6 trillion? My guess is that 90% of the people who took out these loans do not know how many zeros to put behind the $1.6 trillion. Sad isn't it?
