Home / Debt / The Effects of Student Loan Debt
Print Friendly and PDF

The Effects of Student Loan Debt

Written by Gary North on October 9, 2014

A student whose parents have looked out for him — and for themselves — can earn a B.A., degree at an accredited university for under $15,000, usually by age 20, but in some cases by age 18. The man who supervises the daily mailing of this report received his B.A. in the month he turned 18. That was three years ago. It cost him about $11,000. This is not a fantasy. I have been talking about this ever since 2006. Let me explain.

But parents ignore this. They send their children into the pit of overpriced education. They even deplete their meager retirement funds to do this.

The blind lead the blind into the ditch.

What is the result? This.

The student loan debt bubble in America is spiraling out of control, and it is financially crippling an entire generation of young Americans.  At this point, the grand total of student loan debt in the United States has reached a staggering 1.2 trillion dollars, and an all-time record high 40 million Americans are currently paying off student loan debts.  Just when our young people should be planning on buying homes and starting families, they find themselves financially paralyzed by oppressive levels of debt.  What makes all of this even worse is that only some of our college graduates are able to get the “good jobs” that we promised them.  So with limited job prospects and suffocating levels of debt, this generation of young Americans is increasingly putting off major life commitments such as buying a home and getting married.  As a society, we really need to rethink how we are “educating” our young people, because what we are doing now is clearly not working.  The following are 18 sobering facts about the unprecedented student loan debt crisis in the United States…

#1 According to the Wall Street Journal, the class of 2014 is “the most indebted ever“…

As college graduates in the Class of 2014 prepare to shift their tassels and accept their diplomas, they leave school with one discouraging distinction: They’re the most indebted class ever.

The average Class of 2014 graduate with student-loan debt has to pay back some $33,000, according to an analysis of government data by Mark Kantrowitz, publisher at Edvisors, a group of web sites about planning and paying for college. Even after adjusting for inflation that’s nearly double the amount borrowers had to pay back 20 years ago.

#2 In 1994, less than half of all college graduates left school with student loan debt.  Today, it is over 70 percent.

#3 Approximately 15 percent of graduate and professional school students leave school with student loan debt balances in the six figures.

#4 At this point, student loan debt has hit a grand total of 1.2 trillion dollars in the United States.  That number has grown by about 84 percent just since 2008.

#5 According to the Pew Research Center, nearly four out of every ten U.S. households that are led by someone under the age of 40 is paying off student loan debt right now.

#6 The median net worth of young households that have student loan debt is 20 percent lower than the median net worth of young households that do not have any student loan debt and that are led by someone with only a high school education.

#7 Among college educated people, the median net worth of young households that do not have student loan debt is seven times higher than the median net worth of young households that do have student loan debt.

(For eleven more disastrous results, click the link.)

Continue Reading on www.thedailysheeple.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

11 thoughts on “The Effects of Student Loan Debt

  1. Retail or Wholesale: "The rich rules over the poor, And the borrower becomes the lender's slave." (Proverbs 22:7)

  2. I saw this coming 20 years ago when Colleges started increasing there pay and told students not to worry for you can get a Taxpayer loan at low interest rates to pay for their Union pay increases. Their increases have out striped inflation 2 to 3 times the cost of living increases as there standards have decreased for what they are required to teach.

  3. Random Dude says:

    You've got it backwards. First, government offered subsidized loans. Second, schools then realized they could increase prices because uncle sugar was offering loans in whatever amount the school wanted to charge. So because the government will just as readily offer a $2000 school loan as a $20,000 school loan, the schools learned they could hike up their costs because no longer were private individuals paying for school, the government with it's endless checkbook was.

  4. That's an average of $30,000 a student.

    The Progressives want "forgiveness". This foolishness will ruin the Student Loan Industry. What is needed is reform of the Academic Industrial Complex. Don't hold your breath waiting!

  5. We have seen the same thing with Medical Services. "Free" Services increase the amount of money tossed at the industry. So they escalate prices.

  6. And the money junkies complain that young people are not buying homes and starting new families fast enough to keep the pyramid going. No wonder, since college-age kids took on the debt thinking there would be high-paying jobs with which to pay it off….and start a family and buy a home.

    This is what happens when money addicts are allowed to run society, aided and abetted by the government agencies that are supposed to be regulating the banking and financial services industries.

  7. Government financed student loans are a tuition stimulus plan institutions of higher learning. The more government finances tuition, the more tuition can be charged. Isn’t this is why college tuition has increased at twice the rate of inflation?

  8. make that: " . . . plan for institutions of . . . "

  9. Can't see the problem with what's happened to your children ??   

    Let's take a look, shall we ?

    First you send your children to be corrupted by the public fool system, where your daughters are taught to be whores and your sons to be sodomites!

    Then you send them to these vial centers of "higher education" to set their corruption in cement, and YOU TAKE OUT LOANS to do so !!   

    And all so they can have a degree in uselessness, not to mention your daughters taught to be men and your sons to have " their " … women rule over them" and allow their children  to be " … their oppressors." ??!!   Isaiah 3: 12.

    And you can't figure out what's happened to them and the nation as a whole ???

    God forbid the boys be taught to be men, provide for, protect and take care of their wives and children; and the girls be taught to marry, have and raise children !

    "Since you have forgotten the Law of your God, I also will forget your children." Hosea 3: 6.

    Most of those who complain about how their children have turned out and bad things their taught, as well as what's unchristian, anti-God, etc., etc., in all the public forums such as the public fool system and then CONTINUE their corruption and demise by sending them off to college via the student loan enslavement trap, not only do nothing but complain about them, they continue to pay for them (i. e., feed The Beast), as well as participate by sending their children to these indoctrination centers and get a loan to do so.    Who's really the problem here  ????

    How can victory over The Beast be expected, if The Beast is continually fed ????    GET THOSE CHILDREN OUT OF THERE, QUIT TAKING OUT THE LOANS AND QUIT SUPPORTING THEM !

    The only way to save this nation is to turn back to Him, His Perfect Moral Laws, Statutes and Judgments, i.e., His Kingdom/Will On Earth.   Seek Him while He may yet be found.

  10. Got that right the more money throws at colleges they love those high end cars and grand life styles so the tuitions always go up. The imminent disaster is there are minimal good paying jobs left. The balance of the jobs/ companies has departed for lands of fewer regulations & taxes. So what the folks are left with is a lot of part time, low paying jobs and at minimum wage it is really tough to pay off 6 figure college debts.
    We also seem to see a lot of folks on the news channels who seem to be trained lawyers. So why can’t they get honest work, no wait I forgot they are lawyers… 😉
    I do not see the situation improving under a regime that wants everyone dependent on the government.

  11. Remember Uncle Surgar you can stay with mommy and daddy until your 26 and drink hot chocolate. Yet folks wonder why they're not buying houses.. Come on folks does not take rocket science to figure that one out.