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Why Don’t Parents Warn Their Children?

Written by Gary North on July 24, 2012

This woman is close to $200,000 in debt for a useless college degree. So is her husband, who married her debt, “to have and to hold, until death — or a bankruptcy judge — do them part.”

They will never get out, unless a lenient judge lets them off the hook.

I do not understand the utter stupidity of parents who do not tell their children, “Don’t do this!”

This poor woman attended an overpriced private university to earn a degree that is worth nothing. She ran up a bill of $110,000. She is not alone.

Then she found out she had to pay back the loans, plus interest. This came as a shock to her. She is not alone.

To my horror, my first bill appeared in my mail box on the very day I graduated. How did they expect me to have a job this soon after completing my degree? How was I supposed to pay it? Again, to my horror I learned that they did not care. They wanted their money. And so began my nightmare with student loans.

We have raised a generation of economic illiterates with college degrees.

I took out $110,000 mostly because the private university I attended pushed private loans. I foolishly borrowed this money unaware of their lack of affordable payoff programs and complete disrespect for their borrowers.

Never ask the barber if you need a haircut. You’ll get one.

I was laid off from the non-profit I worked for six months after graduating. I was told due to the rough economy my position was being eliminated. Since I had not worked my last two years in college and since I was only employed for 6 months, I did not qualify for unemployment.

If she had followed my plan, she would have at least four years of employment on graduation day. She would have no debt.

Upset and scared I called my creditors and lenders explaining my situation. Sallie Mae offered an unemployment deferment, as did Perkins and Direct Loan. [My lender] did not. Instead, I was mocked and belittled with questions like “why did you take out the loans if you can’t pay them?” or “just ask a family member to pay.”

What did she expect?

My monthly payment was $1,100/month, how was I supposed to pay that with no job and no unemployment benefits? Once again, to my horror they did not care. On a conference call with them, my mother asked what we’re supposed to do if we cannot pay. They told her to sell her home. I am completely serious. SELL her home!

Why did her mother not intervene on graduation day from high school? Why did she let her daughter destroy herself?

Where are parents? Are they blind, deaf, and dumb?

Basically, yes.

I saw my score go from 756 to 530. All because I lost my job and they could not and would not offer me any sort of reasonable payment program. I pleaded with them, explaining that its not that I don’t want to pay its that I cannot pay that much. They refused to budge.

Of course they refused to budge. They are paid not to budge. Sob stories are universal.

They sucked her in. They lowered her monthly payments. Then they hiked her total obligation. She had not known they would do this.

Since they are a private lender, they offered only one consolidation program with a finance charge of $169,000. That means, over the life of the loan I will pay back $279, 529.20. All for an undergraduate degree that has gotten me laid off 2x in two years.

She married a Marine. This poor sap now owes $169,000.

But that’s not all! “Did I mention I also have federal loans?”

Why can someone claim bankruptcy and get out of credit card debt and gambling debt, but we cannot forgive student loans?

Because the bankers got the law changed, that’s why.

Why are the educated being punished for doing what we were told to do? We stayed in school, we got our education.

Because the bankers want to trap debtors for life. This is the easiest way to do it.

Where is OUR bail out?

Everyonre wants a bailout. The ones with college degrees are told in school everyone deserves a bailout. But these are hard to get.

This has got to change!

Why? It works too well for the banks. They do not want it changed. They designed the system, and Congress implemented it.

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22 thoughts on “Why Don’t Parents Warn Their Children?

  1. USA Born & Raised says:

    I worked my way through college. At one time, I took a year off and worked 3 different jobs to save up more money for college so I would not be debt. Yes, I was one tired puppy that year. But the sacrifice was worth it. I looked for grants and scholarships. Yes, I still did take out one SMALL school loan and I paid it off early. You have to set your priorities. You have to look down the road. I did this while I was single and not married. I did not drive a new car. I drove a car that I needed to work on to keep it running. I changed my own oil, replaced my own brakes, etc…..and I am a WOMAN. <:) The one thing I did NOT like about my college education….I was REQUIRED to take WOMEN'S STUDY courses….only if I wanted to get my degree. All the class reading materials for these courses were ANTI-MEN and led by divorced or lesbian women. I sat in class, kept my mouth shut, finished the course…then went and married my husband….and that was 31 years ago.

  2. sean murry says:

    i am glad i didnt go to college i went to work after high school.

  3. "The rich ruleth over the poor, and the borrower is servant to the lender." (Proverbs 22:7)

    "In cowboy terms: 'Debt doubles the weight on your horse and puts another in control of the reins.' When usury is involved, the weight of slavery is compounded many times over:

    ' …Woe to him that increaseth that which is not his! How long? And to him that ladeth himself with thick clay! Shall they not rise up suddenly that shall bite thee, and awake that shall vex thee, and thou shalt be for booties [plunder NASV] unto them?' (Habakkuk 2:6-7)

    "Thick clay tablets were what ancient Babylon used to engrave their usurious loan contracts. Borrowers were literally laden with weight. Today, the weight is worse in that most people are laden with usury their entire lives, so much so that many, upon their deaths, pass their outstanding debts on to their children.

    "Verse 7 warns that usurers rise up and bite. The word "bite" is translated from the verb form of neshek, which means interest on debt. Debt is bad enough. But interest-encumbered debt will rise up and bite you. It will certainly take a bite out of your bank account and ultimately your children’s inheritance.

    "Usury helps divert the wealth of a nation to the ungodly. The usurer plays no productive part in a nation’s economy. Instead, he takes a "bite" out of others’ productivity for his own gain, while producing nothing of value himself. True producers earn by the sweat of their brow; the usurer earns by someone else’s sweat…."

    For more, see "Thou shalt not steal," the eighth in a series of 10 Commandment booklets. Click on my name, go to our Online Book Page, and scroll down to the Eighth Commandment booklet.

  4. Their parents probably warned them, but they would not listen. They wanted fun degrees.

  5. nobodysfool says:

    Education is a farce. Nobody gets educated in school or college. It is merely a mass day-care system where young brains are filled with anti-Christian, anti-America, anti-Constitution rhetoric, so that the poor unfunded "scholars" can then go and "occupy" some other citizen's property and protest their sorry plight. Who funds those hippie occupiers?? Now that's a question that needs answering. They sit there in their little tents, defecating and urinating on public property, and police can do nothing. Then they whine if one of their fellow law-breakers rapes them. Stupid products of the American public "education" system.

  6. "We have raised a generation of economic illiterates with college degrees."

    My people are destroyed for lack of knowledge (Hosea).

  7. Max Penn says:

    I always thought that one gets smarter from going to college.!!

  8. Have you looked at the test results that show that in a basic knowledge test that high school graduates going to college score better then when they come out of college. College makes them more stupid in general then they were out of HS. You only have to look at how they vote to see real life evidence of this.

  9. *than

  10. What do they expect? Education like everything else is not free…I took student loans…for a degree that actually led me to a career. I’m making it a priority to pay them off…it’s my debt no judge should excuse them..I’m down to 8000….and can’t wait until I can celebrate when it hits zero!

  11. The disdain for education in our country is both astounding and disturbing. As other countries relish education and reap the benefits (India and China to name a couple), America continues to bad-mouth the benefits of education. I'm perfectly amendable to a discussion on the runaway tuition costs in the United States, but to suggest that a college education is worthless is naive and harmful. Students with STEM degrees are highly touted in the workforce and gain invaluable experience in college. I couldn't imagine an aerospace engineer without a complete understanding of material science, physics, and calculus. Education should be the cornerstone of any society, and the advancement of human knowledge is a common goal we all should strive for.

  12. Okay, only non STEM baccalaureate degrees are worthless. That would be 76% of degrees in the U.S.

    Seriously, it's a cost/benefit calculation, and if the cost is greater than the increased revenue you can expect, then you are probably looking at the wrong degree.

  13. Higher education was a good thing many years ago, but it got to be a status item to prove your family could "keep up with the Joneses." Now, it's expected as high school was at that time. Instead, young people should be encouraged to learn a practical trade rather than any of the silly degrees and other subjects that lend nothing to their employability and could studied on their own after they are working. I know that I was well on the way to what became a profitable career for others, but resigned and went to college and got a degree that is now practically useless.

  14. Went to school during the day, worked at a pizza place at night. I spent two years at a JC before transferring to a four year. My brother joined the Navy and financed his education through the GI Bill. I have no sympathy for these people.

  15. Thoughts:

    Parent's don't warn because it's second (or third) generation financial illiteracy. The parents don't get it themselves. Common topic on the Dave Ramsey show; couple calls in, 120-150k in debt for "education" and Dave ask which one is the doctor. "Um, it was for sociology and we have kids now, so…"

    There really isn't an ROI on a financed college education. Take the same money and invest it, giving it 40 years to grow (assuming the American way of life is still around in 40 years) and you're ahead.

    You can't educate someone; they can only take the initiative to educate themselves. When they have that inspiration, a college degree can be a valuable asset. When they go for the parties, it's just an expensive vacation.

  16. That's just crazy!

  17. so i was supposed to feel put down by feminists who claim women now have higher graduation rates (non-science) in useless degrees, then i have these articles now coming out with women students claiming victim-hood, and i am supposed to feel sorry, with all these gender-equality stuff they were pushing earlier, equal rights for women sports teams in university, efforts to force maturity pay off companies. was i supposed to feel sympathy here? i apologize then.

  18. Why should I feel poorly for anyone who knowingly signs a loan contract then whines about repayment. We are all in charge of our commitments and the repercussions resulting from our decisions. I read more and more of the young that expect the big life style but without any responsibilities.

  19. BoomBoom says:

    I have a college degree. My wife does not. She makes far more than I make, at least at active employment. Yes, I learned a lot in college, but we didn't have an internet then. Any motivated person with a plan could learn what I learned in 4 years in about 2 years of study at night and on weekends. They'd also have about $100,000 more in the bank after 4 years as they had a JOB all along.

    I do the investing to earn more, but it is not required to spend $100K to have a good job. It is also not required to be an educated person. My wife with her HS diploma is a far more accomplished writer than some of her colleagues with MBA's. She has far more knowledge of finance than her co-workers with Finance degrees. She is no dummy.

    If you are lazy and have to be forced to learn maybe you need college. Otherwise, it's likely waste of time and money for those not in the sciences and engineering.

  20. That's because of all the massive alcohol consumption ………… and additional two years of 'fluff' classes that keep all those professors employed and out of the real world.

  21. I am of the opinion that you really have to want to learn to actually learn anything. I do not think most college students care about what they are learning, they just go to college because that is what their parents did, and what all their friends are doing. Really all you get from college is a $100,000 piece of paper. You can get the same education with a library card for free.

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