The subprime student loan crisis in america
I am a former athlete. In fact, I still somewhat consider myself an athlete.
I may not jump as high or run as fast, but I consider myself in pretty good shape.
To stay in shape though, I have to train. From lifting weights to running. This is what it takes to stay in shape.
This training is exactly what America did to its people when it comes to student loans.
America trained Americans to believe that in order to become successful in life, you need a piece of paper. Also known as a college degree.
And in order to receive that degree, you need to accept the student loans they offered you.
As of 2019, this training has caused over $1.5 TRILLION in student loan debt.
#1 ASSET FOR THE UNITED STATES
If you’ve been paying attention, you notice how much of a seriousness I put on a financial statement.
I always mention how its your REAL WORLD report card.
Meaning that when you step out into the world, banks judge you by your financial statement. Car dealerships judge you by your financial statement. Insurance companies judge you by your financial statement. This is reality.
These people want to know your income, expenses, assets and liabilities.
Well the United States Government has a financial statement also. And their number one asset that makes them money, is student loan debt.
Yes that is right, they depend on you to stay in student loan debt, because it makes them money. Its really that simple.
ELIMINATING STUDENT LOAN DEBT
There are politicians, specifically Elizabeth Warren, who is campaigning to eliminate student loan debt.
Does she have a shot? Your guess is as good as mine.
But I have one question. Who’s going to pay for it? You have a government politician campaign to get rid of the very same asset that the government uses, to pay her salary.
SUBPRIME STUDENT LOANS
Student loans are equivalent to the 2008 housing crisis.
This time, its not called subprime mortgages. Its the subprime student loans.
For those who aren’t familiar with the term subprime, the quick definition is the offering of a loan to an applicant with less than top quality credit ratings.
TRANSLATION: You can get a student loan without meeting strict qualifications.
And here’s the nail in the coffin with student loans. They are NONE bankruptable.
QUESTIONS TO THINK ABOUT
Ill leave you with this. Is college worth signing a contract that says you cannot bankrupt the debt?
Is it worth the extremely high interest rates?
Do you believe a skill is more valuable than a degree?
All I know is once you take on student loan debt, if you aren’t able to provide a valuable skill in the marketplace, student loan sharks can careless.
Because you’ve become a customer for life for them.