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The Student Loan Crisis and the Debtfare State


#1

The Student Loan Crisis and the Debtfare State

Susanne Soederberg

Educational debt has become a ticking time bomb. With over $1 trillion in outstanding loan balances, the student loan industry has a lot in common with the sub-prime mortgage industry, which went into a devastating crisis in 2007-8. Both rely on a financial innovation called “asset-backed securitization” (see sidebar in original) to raise capital and to hedge risk—in other words, to raise money for loans and to reduce the likelihood that investors will lose their money.


#2

it is only a matter of time until radical programs to expedite loan forgiveness are implemented. Currently the student loan industry, private and public, remain insolvent with no future indications this will change. It may seem radical today, but to advocate students loan delinquency in order to address the fundamental problems, may very well be more progressive for tomorrow-the student loan bubble is bound to burst. The longer fundamental problems are not addressed, the more severe its affects will be. Discharge student loans and make college little to no cost. We have enslaved at least one generation to life long debt from student loans, will we let another?


#3

We need to get rid of the expectation in foreign nations that we are about to open up for global temping. Because that appears to be the case on some level due to the ongoing TISA negotiations in Geneva.


#4

The problem is, we've created a monster in these trade deals as we try to compel the world to make it impossible to have new public anything if it competes with private anything anywhere in a country.

Thats what the trade deals we are pushing now
expand on GATS- which framed that as a theft from both banks and our global education brands.

" Discharge student loans and make college little to no cost."


#5

The process is psychological for many undergrads, including myself. Once you get the first loan, you may feel somewhat irresponsible for doing so. As you watch the numbers each year start piling up, it takes on an aura of unreality. Your life becomes more "what ifs." I don't get a job, something happens to me, my credit gets hurt. It's not enough to go to school. You are now in your own little finance casino carefully crafted during the 1980s. Freedom? You have none.


#8

I live in Canada but way back when I attended a Technical school post secondary.

My rent was 80 dollars a month.
My tuition was 180.00 dollars per year.

I got a summer job each summer getting 50 dollars a day flat with all expenses (food shelter ANYTHING) paid for and as a student paid no taxes on it.

I would work 60 days out of the year and have 3000$$ more then enough to pay all my expenses while going for that education.

Can any student today work 60 days and earn enough to pay all those costs? Can any work 4 days and have enough to pay all tuition costs? I highly doubt it.


#9

We're stuck with the consequences of an agenda strongly supported by the middle class, from Reagan's deregulation mania to Bill Clinton ending actual welfare aid. Think about what Americans did. From FDR to Reagan, the US had implemented policies and programs that took the country to its height of wealth and productivity. With Reagan, the US reversed course, doing just the opposite.

By now, most of the country is effectively locked out of higher education, and therefore now locked into low paying jobs. We've essentially been transitioning into another third world labor state, so only the elite will need higher education.


#11

I am going to go out on a limb and say that you must be a privileged white male who has not had to struggle with trying to finance college. It's so easy to dismiss people's suffering when you've never experienced what they are going through, lol.


#12

Maybe 18 year olds should just be able to go to school to actually GET the economics class as undergraduates. That was the GOP mantra in the 80's-everybody had to think about money constantly at the expense of everything else. But it takes money to get that training as a financial advisor.....


#13

Many of us felt this thirty years ago, but they kept up the rap of transitioning to a service economy, so many did not know what to expect. 100% correct, with Reagan we destroyed what had been built from FDR on forward. The middle class was totally complicit, showing how willing they were to be dumbed down. And they got: minimum at Target, part time, no benefits. Marginally pushing just enough people into crap jobs has worked perfectly as intended. Anybody was a fool to believe otherwise.


#15

WE are not pushing trade deals, Tisa.

The TPP and TIPP are secreted away from the public for a reason.

We should be accurately attributed to actual causative agencies. Otherwise, it's a subtle form of propaganda that takes what is done by, for, and about elites and PRETENDS that the citizenry is behind it.


#16

Poorly crafted, mangled post and attempt to place elite policies--done to DRIVE $ to the top of the financial "food chain," (as proven by the Piketty Study) and privatize formerly well-operating public functions with some alleged "plot" by (and on the part of) The Middle Class.

As Bernie Sanders and HONEST posters notice, it is the Middle Class that's been attacked by these policies.

This thread is full of anti-student shills, the usual We-framer ding-dong squad, and touters of the "Middle Class Talking Point"... a favorite of Atomsk and OTHER paid posters a/k/a site embeds.


#17

He's a paid shill.


#18

Americans are being accused of pushing TTIP and TISA to get rich off of the blocking of needed laws and toxic chemicals and the dismantlement of the EU safety net. America must agree with the deals since it elected privatizer Chicago School neoliberal Obama..right? Since Obamacare is so great it has to be a model for the world.


#19

Do they still let people with a lot of student loan debt leave the country?


#20

I have no idea. That's interesting, never thought about whether they could stop you from leaving. Only some people are aware of what a big jail camp the U.S. really is, lol, for all who want to come there's LOTS that want to leave ever since W Bush came. Now many are, who can afford it.


#22

The US uniquely wastes its brightest, most educated people. If you
wonder why the Republican candidates are among the dumbest people you
have ever heard, think about the bright people you know who have been
persecuted for going to college. The sickness of the US is how it
rewards the very worst among us and wastes so much amazing talent.