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The Student Debt Time Bomb


#1

The Student Debt Time Bomb

Chuck Collins

There’s a generational time-bomb ticking — and the student debt crisis is the trip wire.

Adults under 35 disproportionately bear the brunt of escalating inequality.

America’s educated youth are graduating into an economy with stagnant wages and a torn safety net. Federal and state budget cuts, meanwhile, have spiked tuition costs and cut public services that aid young workers, such as transportation and affordable housing.


#2

While creating programs for future students is critical, how the government handles the situation that weighs down on students today will be the turning point in the debate. If it digs in its heels (All that money to be made!) which is what I expect, it will precipitate a crisis. And sometimes change only happens when a crisis exposes the lunacy that created the problem in the first place (essentially, that every single act we engage in has to have some sort of financial gain or profit attached).


#3

With the social media revolution it shouldn't be to difficult to organize a student loan repayment boycott.
If every person with a student loan millstone all quit paying their loan sharks, the loan shark is out of business.
They can't pursue everyone.


#4

The way the system currently works it doesn't take a lot of time and energy to garnish a pay check, revoke a professional license, or take one's social security or disability. They can easily do this in mass. A strike is not the answer. A collective organized effort demanding that congress change course is the answer and it needs to happen now! Join http://studentloanjustice.org/


#5

A strike is not the answer in isolation, but as part of a broad strategy that includes concrete demands for debt cancellation and free education.

Absolutely, refusal to pay should be an increasing part of the tactical arsenal of a strategic movement to turn back the privatization of everything, including education.


#6

I see a statistical miswriting in the middle of the article. It states that tuition costs are up by 1000%, while state aid to state universities is down by 40%. That almost certainly is apples vs. oranges talk. I bet that the 1000% is without inflation adjustment, while the 40% decline is after accounting for inflation. States certainly are spending more on their colleges and U-s than they did in 1970, the question is "how much".
-- As for the meat of the article, a few statements from classical economics.
* If students can't pay their college costs, then they won't: Herb Stein's Law.
* Failure of students to pay will mean that lenders won't lend, unless they are stupid like the Federal Govt. and have some political purpose like the Federal Government, of increasing the number of minorities who have higher education.
* If students can't find jobs with a college degree, then the next cohort of students is less likely to go to college. And something is wrong with our economy. I was just reading a Common Dreams article about 'Less is Better'. That would include fewer people, less time, invested into higher education. If we can't solve the economy problem of employing enough people who only have a high school education, and improving the value of a high school education over what it often times is right now, -->
* That provides an incentive for people to not have kids; to get their loving from pets instead. Which helps the world in a ZPG sense.