Student loan debt is out of control
I want to start of by being very transparent, I’m not a huge fan of college, even though I attended myself. Its not because I don’t believe in a college education. But because the value placed on it is massively overpriced.
Just about everything you learn in college is literally a google search away. To me, this drastically plummets the value of college courses.
After years of researching finance, i’ve found that the business of college is just like any other business. Theres a supply and a demand. The demand for college has plummeted, but the tuition has skyrocketed.
Thats counterintuitive. But it makes you wonder how is this possible.
Massively overpriced college courses is only the beginning. The main problem is the student loan debt.
CUSTOMER FOR LIFE
When you take out student loan debt, you must understand that you officially become a customer for life.
Student loan debt is whats called NON-DISCHARGEABLE unless due to hardship. To simply put, you cant discharge student loans in a bankruptcy. This makes student loan debt the worst debt you can possibly receive.
This is equivalent to signing a contract saying you can never get out of a deal until you pay it back.
Once you take that deal, there is no backing out. So this is what it essentially means to become a customer for life.
$1.5 TRILLION IN OUTSTANDING STUDENT LOAN DEBT
The monetary number of outstanding student loans has doubled in the last 10 years. One thing that contributes to this number is the obsolete curriculum that college courses provide.
Its clear that the curriculum doesn’t hold real value when taken to the marketplace for job placement. If that was the case, then graduates would be able to find jobs that allow them to earn a salary that pays student loans with no problem.
Unfortunately thats not the case.
Student loan debt is the largest asset for the federal government.
To put it into perspective, student loans put the most money in the governments pocket. So there’s no real incentive for them to come up with programs to help decrease student loan debt amongst graduates.
BUSINESS AS USUAL
Regardless of what I say, or what others say about college and student loan debt, student will return every year and it’ll be business as usual.
The fact of the matter is if you bring no real value to a company in todays age, your chances at a true job is slim.
If college is something thats an absolute to you, I would advise to have some cash stashed away in order to walk away from the worst contract known to mankind, student loans.