Off the Keyboard of RE
Discuss this article at the Economics Table inside the Diner
In order to resolve the BALLOONING problem of Student Debt Default, TPTB are rewriting the laws regarding how Student Loans are to be paid back, and how long it takes to finally get your debt accumulated for learning worthless information wiped off the books.
Based on the latest set of revivions to the Student Loan laws, there is now absolutely ZERO reason not to take out the biggest loans you possibly can get guaranteed by Da Goobermint to go to school and drink beer and bang coeds for as long as you possibly can.
In one fell swoop this solves the problem of Youth Unemployment and further Money Creation thru irredeemable debt. Da Goobermint nor Private Industry can figure out how to provide decent jobs for HS Grads, so instead they will now offer further loans you don’t have to pay back if you don’t get a job upon Graduation, if in fact you actually ever Graduate.
You can go get your BA, your Masters, your Ph.D, your MBA, your JD…that works up to around 16 years in Academia! Just keep taking out more Loans! Evenif you only get a job flipping burgers at Mickey Ds at the end of it (all those sheepskins will be REQUIRED for applying for the job of flipping burgers), most you gotta pay every month is $100 for 20 years, then you are Free & Clear!
Is this stupid or what? Of course it is, just provide the damn education for FREE, it would be cheaper that way. LOL. It doesn’t put more fictitious money on the Bank Balance sheets though if you do it that way.
The Higher Education meme has been the fallback principle since the beginning of the Industrial Era. Back when the FSofA first got settled, if you actually “schooled” past around 3rd Grade level and learned to Read and Write, that was a LOT. Many if not most people were illiterate, but if they had a patch of land to farm they did OK and could feed themselves and family.
Industrialization though brought all sorta new “Jobs”for people to do, which took not just knowing how to read and write, but Industry Specific Knowledge, which most often was Science and Math related. To get any of these Juicy Jobs, you hadda have quite a bit more than just knowing how to read and write and add sums.
So began the Warehousing and Sifting of the population through the High Schools, where in the early years you could learn Trades as well as Prepping for College and entry into the Upper Class, if you had the Brians to make the grade in such a track. In my era, the College Track was a highly limited one, and in NYC sieved into a few schools like Stuyvesant and Bronx High School of Science. Overall, while Industrial Jobs were still available here in the FSofA, Warehousing through HS and teaching some trades in them worked pretty good.
Come the Late 70s early 80s though, those good paying jobs on the production line of GM began getting offshored to Asia, so now EVEYBODY in HS hadda go on the “College Track” for a good paying job in IT, except of course first off you only need so many drone programmers and second off plenty-o-Chindians are capable of writing decent code also. The Capital flows toward any area the Labor is Cheapest, always in a Globalized economy.
The only high paying jobs that cannot be offshored really are the Gate kept professions in Law and Medicine, basically high end service economy jobs. So in the current economy, if you at least have smarts enough to make it thru a Nursing Program, you might still find a decent paying job. Chindians can’t dress Bed Sores over an Internet Medical Help Line.
In the decaying Industrial Economy, the “Jobs” such as they were are rapidly going to the Great Beyond. The excess population here in the FSofA is being encouraged to stay in school for ever longer periods of time in Warehousing, in theory learning great skills which will lead to High paying Jobs when they get out, but by the time they actually GRADUATE (if ever), those jobs won’t be there.
It is falling apart as model already, and this latest Kludge is just a means to prevent the TBTF Banks from having to write down the student loans they currently hold on their books. Right now, the fact that in 20 years an unpayable student loan will have to be written off doesn’t matter, they can trade the paper as though it actually has some real value.
For J6P here, or at least his kids, this is the Bailout you all have been waiting for. Take the Loans, you’ll never have to pay them back. It is IRREDEEMABLE DEBT. Go to school, stay in school as long as you can. Accumulate Sheepskins, ad as you accumulate, apply for some obs they qualify you for. At some point in the process, perhaps you are one of the Lucky Ones who actually GETS a job the Sheepskin qualifies you for! If not, no worries, the massive debt you accumulate here only has to be paid off on at $100/mo for the next 20 years if you manage to get a minimum wage job flipping burgers anyhow, and will be discharged after that. sooner too if you get a Goobermint Job, only 10 years there!
It is all just hilarious. Sadly, I probably can’t get any of the latest loans and will have to pay for my Nursing Ticket out of Pocket Change, but if you are broke right now and out of a job, APPLY TODAY to the University program of your choice and take out the Loans up the Ying-Yang!