16 Shocking Facts About the Student Loan Debt Bubble & the Great College Education Scam

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As you read this, there are over 18 million students enrolled at the nearly 5,000 colleges and universities currently in operation across the United States. Many of these institutions of higher learning are now charging $20,000, $30,000 or even $40,000 a year for tuition and fees. That does not even count living expenses.

Today it is 400% more expensive to go to college in the United States than it was just 30 years ago. Most of these 18 million students have been told over and over that a "higher education" is the key to getting a good job and living the American Dream. They have been told not to worry about how much it costs and that there is plenty of financial aid (mostly made up of loans) available.

Now our economy is facing the biggest student loan debt bubble in the history of the world, and when our new college graduates enter the "real world" they are finding out that the good jobs they were promised are very few and far between. As millions of Americans wake up and start realizing that the tens of thousands of dollars that they have poured into their college educations was mostly a waste, will the great college education scam finally be exposed?

For now, the system continues to push the notion that a college education is the key to a good future and that there is plenty of "financial aid" out there for everyone that wants to go to college. Recently, U.S. Secretary of Education Arne Duncan visited students at T.C. Williams High School in Alexandria, Virginia and encouraged them to load up on college loans....: "Please apply for our financial aid. We want to give you money. There’s lots of money out there for you."

So where will Arne Duncan be when those students find themselves locked into decades of absolutely suffocating student loan debt repayments? What young high school students are never told is that not even bankruptcy can get you out of student loan debt. It will stay with you forever until you finally pay it off. Today each new crop of optimistic college graduates quickly discovers that there are simply not nearly enough jobs for all of them. Thousands upon thousands of them end up waiting tables or stocking the shelves at retail stores. Many of them end up deeply bitter as they find themselves barely able to survive and yet saddled with tens of thousands of dollars in student loan debt that nobody ever warned them about.

Sadly, the quality of the education that most of these college students is receiving is a complete and total joke.

It really is a huge scam. I was there. I saw it with my own eyes. But if you will not believe me, perhaps you will believe some cold, hard statistics. The following are 16 shocking facts about the student loan debt bubble and the great college education scam....

Source: endoftheamericandream.com...

So, wait till you see the list/stats at the main article. Come back when you are done and comment.

The sad thing is that I too am living proof of what this person writes about. I have a 21 yr old, Junior in college, paying with loans. His optimistic level is high about getting a job when he leaves college-making over $40,000.00 to start. He's always been a hard worker etc but I see the odds have been stacked against him. We are taking steps to ensure the next one doesn't fall into the same trap. He's young but he already sees the set-up with the student loan program. MONEY-100% for sure. Someone's paying for it.

My favorite:
#11 There are 365,000 cashiers in the United States today that have college degrees.

It's pretty scary if you think about it. Especially when you toss in the fact that the Fed Gov't has taken over the Student Loan program-out of the hands of private banks. These kids could become slaves to the Feds...officially.

The Fed might start deciding who gets what loans and if you disagree-no loan: We know you want to study to be a Chemist... but we don't need chemist right now... we need sweage treatment plant operators... Congradulations and Thank you for you committment to the State>>>

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reply to post by anon72


Well, personally, I have spent 20 some odd years with no college education, and was doing those things that you listed, cashiering, waiting tables, etc. I am now going to school (ITT-Tech) online and it isn't costing me that much in loans. About $3,000 the rest is totally financial aid which doesn't get paid back. Thank you very much, but I will take my chances, I have struggled long enough. Besides, I won't be any worse off than when I started, I mean I at least will get $3,000 in EIC when I am working and pay it off in one fell swoop. I also encourage my children to go for the aid and loans. I encouraged them for scholarships, but sadly they slack off and I feel it's apathy spread by the teachers/institutions. They don't make learning interesting or a priority, they teach kids just to do the minimum. It's constructed that way. The elite do not I repeat DO NOT want any more humans penetrating their glass ceiling, no they want us dumb, solvent and smoking the glass dick. That's what they want and they have full control over our educational systems and who really get the education. This year I am pulling my children out and homeschooling them. I will make sure they become much better educated and become independant critical thinkers!

this has been one of my gripes for years.
i got locked into a student loan by sally mae in 1992 at 10%.
because it was a government loan, the interest rate was not negotiable at all.

i'm now 44 and still paying on the loan.
luckly this year i broke into 6 figs, so the loan will finally be paid for this year.

my buddy at my old job, as fellow designer, is in the hole for 100k. and told me he never expects to be out of debt.
to me that's pathetic. it doesn't have to cost this much.

EDIT: also, instead of taking money from schools and programs how about stopping all the 10 year wars?!
the money our crap government is spending on military is gross and BS when it could go to better usages right here at home. pathetic.

I am currently a junior in college and have been taking about $9,000 in loans a year. If I wasn't majoring in engineering I think I would be better off not even attending and putting myself in debt. I just hope there will be a job for me when I am done. The whole situation is kinda scary.

Ok I'm going to give my opinion on this.

College is an institution based around money.
You want to learn more about something?
Hit the library up and spend 4 years on the topic you love.
Why?
Because its free and you can do it.

The majority of people who goto college are only interested in one thing.
Making more money.
If this country wasn't so obsessed with superficial wealth, we wouldn't have this problem.

You see, I went to college.
After I realized the amount of time that was wasted on courses that were irrelevant to my studies...
I quit.
I used my brain and studied the subjects that interested me most.
In my local library.
This was a decade ago.

Now I see parents pushing their kids to goto college just to 'better' themselves.
My question is:
Better yourself for what?
More money?
How much is going to be enough?
Why is our culture obsessed with money?
The more you make, the more you spend...

So to me, its all persuasion from media to keep the machine going.

Now, I am all for actually gaining intelligence.
I support reading, heavily, and learning things to be self-sufficient.
Learning things that would help yourself in multiple situations.
I am NOT for wasting money on college, just to get a piece of paper that says you're smart.

I'd hire a person with experience over a degree.
But thats me.
When I see a resume with all these 'credentials', I ask, "Can you use power tools?"
7 times out of 10, the applicant responds, "No" and I usually look for hands-on experience.
I also despise when a person has a degree and instantly thinks they are better than those who don't.
Who is the smart one here?
Someone who is in debt, to their eyeballs, for book smarts?
Or someone who literally learned a skill with experience...and didn't pay for it?
Plain and simple.

College really does diverge from actual reality. With the things I know now... the educational system is laughable!


Here's a tip:

After 2013 a college degree won't mean jack, so don't waste your time.


Did that sound nice? See if it resonates with you...

Seek out George Kavassilas and his message if so.

reply to post by anon72


I work at a community college and have heard many students talk about what they are going to do with their loan money. Some of them get the loans to buy frivolous stuff, some use it to keep from working, etc. They could work part time along with getting loans. I had to live frugally for a few years and pay off my student loans...some people don't know how to live frugally.

Studying is the job of a student!

This system is so f****d people don't even comprehend it.
People who work for a living aren't forced to study on their free time just to make ends meet...

This makes me sick and it angers me.

I have had so many problems with school since I graduated HS. It's ALL about the money. They don't give a crap if you graduate or not as long as you sign that loan line that is all they care about. I have to either hope for loans or pay my own way. I wasn't able to go to school for years because I couldn't afford it and I couldn't get any aid. It was depressing and I was depressed over it big time. I think I was the only person I know who got upset when school started and I couldn't go....Well this year I finally got loans and pell grants. I was so excited I cried and couldn't believe it...then the nightmare started. I wanted to make a thread on my experience and still might some day because it's far from over.

I was going to a school that had an online program, total scam btw, and well they called me daily til I signed up and started classes. When I was a student they never responded to any of my calls or messages unless I threatened them. I have since transferred out for my sanity, credit and bank account. It was too much stress.

I had plenty of aid and loans. I had the max, yet every time I turned around I had some bill for various "fees" they couldn't explain and have still not told me what they were for. I asked them more than once for a print out of all fees and what they were for. They have not given me that yet. They were only authorized to take money out for my classes and that is it but NO they just pillaged my aid as they saw fit. I also took the option to buy my own books well out of nowhere one day I get another bill with fees for books. They took AWAY the option for us to buy books and said we would be charged $70 per book, per class, per session. They could charge for as many "books" as they wanted. These "books" were available in their so called online library. It was total BS, they were things available online for FREE. Things like speeches and poems that you can view online anywhere. It was another way for them to get money out of you. I was in tears at this point. Seriously just ask my roommate. I had many mental breakdowns over this scam that is called college.

During my second session I went to log in one day and couldn't. I was blocked. I called the school and NOBODY could tell me what was going on. This was a Thursday and I had two classes that i could not log into. It was a lot of work I was missing since they were 6wk courses. Saturday I called tech support and after an hour and the guy getting in a backway told me I was withdrawn from my classes. I was like wth! I called Monday and emailed my advisor who I want to have fired, she does NOT deserve to advise a single person in anything...Anyway. I called Monday and she couldn't figure it out. Finally Tuesday and many calls to many other people they told me I was withdrawn because they didn't have proof I was a high school graduate. Now I was already there for one session of classes, this was my second. I then found out my admissions rep KNEW this and didn't do anything about it. She never emailed me or anything. She told me they get the transcripts and I didn't have to do anything. If she emailed me I could have drove to the school and sent them overnight, but no they did nothing. So they took me out of my classes because they said they needed proof of me being a HS graduate to release my aid. I told them newsflash, if I have loans and aid I am obviously a HS graduate! Doesn't take a genius to figure that out. Well in return I had to withdraw from one class because at this point I was 8 days behind and there was no way I could catch up in both classes esp my art class and my teacher agreed.I wasn't gonna turn in half done work so I withdrew which btw was a pain as well. I emailed my advisor telling her I had to withdraw and her response was..."what do you want me to do." I told her to read my email it was self explanatory. So now I withdrew and everything was fine or so I thought. Now they are telling me I need to repay the fees for that class because they say the fees were paid to the school. Um WHY were fees paid for a class I didn't take and withdrew from because of their mistake NOT mine. I was so upset and still am because it is affecting my current school status and aid. I refuse to pay for a class I never took and HAD to withdraw from because they messed up and did nothing to inform me.

The worst part is my financial aid advisor called me a customer!!! Yeah CUSTOMER! Then she back peddled and said student. I said to her no that is how you see us and you don't care and it's obvious. Oh I was pissed. She kept trying to apologize and reword it..It didn't work for me. I knew how they felt about us. They have 14,000 online students at this school and ALL of them are divided between the teachers on campus. That is complete BS. We are promised a certain education and we sure as hell do NOT get it. We are put on the back burner. My experience at the Art Institute of Pittsburgh online division was and has been a total NIGHTMARE.

I have since transferred out and the funny thing is they call and email me constantly now trying to get me to re-register. The last email I sent back to them wasn't very pleasant and I threatened a lawyer if they kept harassing me. I find it HILARIOUS they are up my ass now that i am not there...

I almost went to Pennsylvania to the campus but I knew it would have been a bad idea. I told them if I have to fly to PA they won't like it and they will know when I arrive.

I am just at a loss for words and what to do. I start classes right after I return from my trip and my aid is being held because this scam of a school is trying to get another 1200 bucks out of me. Its not happening. I don't owe it and I won't pay it. Also when I tried to withdraw before session in October they told me I had to stay and some other crap. I didn't want to take the course there because I could take it where I am transferring to for a fraction of the cost since it's a community college. I later found out what they were telling me was a total lie and they just wanted more money. I am scared that I won't be able to take my classes in January. If that happens I will probably flip out big time...

Well this is my story and I agree higher education now a days is a complete and utter money scam!

Originally posted by havok

I'd hire a person with experience over a degree.
But thats me.
When I see a resume with all these 'credentials', I ask, "Can you use power tools?"
7 times out of 10, the applicant responds, "No" and I usually look for hands-on experience.
I also despise when a person has a degree and instantly thinks they are better than those who don't.

I'm in agreement with you at the 85th percentile range. There are certain tasks that require higher education but it seems few students these days are attempting to get degrees in these fields.

I haven't used my degree in over 15 years. It's a piece of paper on my wall that didn't cost nearly what it would today.

I have seen individuals turned away from jobs who were MORE than qualified to do said jobs based upon their experience but they didn't have that magic document known as a degree. Talk about a loss for the company??? Hire someone with the magic document with no experience or hire someone who can hit the ground running without it? That should be a no brainer and I don't require a degree to work for me. If you can demonstrate knowledge of the task required of you, I don't give a damn about a piece of paper that you'll spend the next 10 - 20 years paying off as much as I don't want to spend my time teaching you how to do things.

I've met my share of degreed individuals who feel they are entitled to a salary they are nowhere near worth being paid. My thoughts are that the degree is merely a foot in the door. If you can do the job, you're hired. If not, I'd prefer someone who can regardless of their "credentials".

reply to post by mblahnikluver



Wow, thank you for sharing that.

Amazing. And, nothing we can do about it. Not now anyway. Even when Obama gets voted out in 2012, it will take time to undue his damaging work.

Sad.

reply to post by bozzchem


That's exactly what I was saying. Ok I have loads of stuff I know about computers, I used BINARY for God's sakes before Windows and all that garbage came out, I was the only chick actually the only PERSON in my entire household that could program the VCR for heaven's sake!!!! Now I am a woman, and have no degree, do you think that Best Buy would even hire me as a sales Rep. Nope Not even and I know/knew more about their products than half of their staff did! Anyway, I have a couple of male friends whom with no degree got jobs in the computer field who had never so much as SEEN a computer before 1991. HONESTLY! And they get hired!!!! What's that about???? And this is males with no experience formally, and no degree, all they got is good BS skills. I am a woman who knows just as much, yet I have to pay to "LEARN" it to recieve a degree just to get my foot in the door and at an entry level job at Best Buy at that, probably!

Originally posted by anon72
reply to post by mblahnikluver

 

Wow, thank you for sharing that.

Amazing. And, nothing we can do about it. Not now anyway. Even when Obama gets voted out in 2012, it will take time to undue his damaging work.

Sad.

Yeah I have had some very bad experiences with the loan sharks, well that is what I call the loan companies for school. I actually tried to make a thread about 4 times on my experience but it made me so mad I stopped or my computer crashed so I gave up, then I saw your thread pop up in chat.

It is sad because I looked online and there are dozens if not hundreds of students who are permanently screwed by these companies and schools. It's sad when all they want is to better their education and they take advantage of you. They don't care at all if you graduate or not, they got your money and basically own you for life!

I look for people who have experience when I’m hiring. When I open up a position I will get 300+ résumés . I flip through them all and throw out all the one that have just college as their experience. I interview a few college kids but they all seem like this job is owed to them. then a month later ask for a raise.

I just hire people with work experience now. Not worth training college kids that don’t know anything about life and hard work

I'm going to a pretty good community college.. Hoping to get my pre-reqs done to apply to Medical school.

It doesn't cost much per year now.. maybe $4000 in tuition. I've learned the system, so I don't spend a lot on books and still pull through the classes with As.. I only buy the books I absolutely need.

Originally posted by ldyserenity
reply to post by bozzchem

 

That's exactly what I was saying. Ok I have loads of stuff I know about computers, I used BINARY for God's sakes before Windows and all that garbage came out, I was the only chick actually the only PERSON in my entire household that could program the VCR for heaven's sake!!!! Now I am a woman, and have no degree, do you think that Best Buy would even hire me as a sales Rep. Nope Not even and I know/knew more about their products than half of their staff did! Anyway, I have a couple of male friends whom with no degree got jobs in the computer field who had never so much as SEEN a computer before 1991. HONESTLY! And they get hired!!!! What's that about????

And this is males with no experience formally, and no degree, all they got is good BS skills. I am a woman who knows just as much, yet I have to pay to "LEARN" it to recieve a degree just to get my foot in the door and at an entry level job at Best Buy at that, probably!

I wish I could give you an answer. I've worked for many companies who won't even entertain a resume unless the individual sending it has at minimum, a BS. (Ironic isn't it that the minimum degree is called a BS?)

I went through my degree snob phase and then realized just how many degreed individuals couldn't change my oil let alone get done what was required of them...plus they expected a high salary even though I would have to train them just to get them capable of dealing with the rudimentary aspects of the job.

I've since lost my snobbish thoughts and now look for those like yourself. I want to hire those who can hit the ground running and I don't have to waste my time training them. Take heart since I think this is a trend that will become more mainstream in the very near future.

It may take a while for the big corporations to realize the folly of the mindset requiring a degree but those of us who have consulting firms have already realized that we need people who know what they're doing/talking about rather than those who have a piece of paper.

reply to post by bozzchem

It may take a while for the big corporations to realize the folly of the mindset requiring a degree but those of us who have consulting firms have already realized that we need people who know what they're doing/talking about rather than those who have a piece of paper.

Nail on the head. I have to agree with your assesment. When I first got out of college, I thought a degree meant everything-in most ways it did-then (1986). When I got in the real world I learn right off the back that experience will win out over degrees-eventually.

The most I got out of college (jobwise) was connections and hook-ups. People who would get jobs and then tell me about them etc. Now, years later, I just want to get the hell out of the day to day, run of the mill stuff-focus on what I do best and concentrate my efforts there.

I see the new college grads come and go all the time. Doesn't seem like it is worth getting to know then well as they just don't stick around (one way or the other). I think many of them get into the job and realize it isn't what the books said it was. The streets teach differently.

reply to post by anon72


agreed. we dont hire from schools anymore. we hire people we see on the streets that are working hard. Example, we would walk into home dept and find the hardest working person there and offer them a job with us. or a waiter at a resterant we go to alot. he waited our tables so well so many times we offered him a job and he took it.

its hard workering street smarts that get you the job not book smarts.

I get calls from student loan collections every day. I took out loans for 1 semester of school, my 1st semester as a junior when I was 20. Halfway through that semester they pulled me up to admin and told me my scholarship wasn't good enough and I needed to pay up, so I took out loans through Sallie Mae, Perkins Loan, and Key Bank all for 1 semester. I realized that by the time I was a senior I would be so far in debt that it wasn't worth it.

I paid of my Perkins loan in full, but that still somehow made it to collections and they expect me pay late fees and interest on those fees even though I paid in full and that loan made it to collections due to some sort of clerical error.

I owe Sallie Mae a few grand, I'm okay with that because I think they could still help me finish up school if I go that route.

Key Bank are a bunch of dirty loan sharks, I borrowed 5500, made a few payments and now they are demanding something like 8k to be paid in full. Last time I talked with them I told I'm unemployed have a ton of college credits and that I need help to finance the rest of my schooling, they told me they no longer give out student loans.

I have no intention of paying them back, I feel like I was scammed into signing the loans in the first place. They tell me how this will ruin my credit, I'll never be able to buy a house, ect... I tell then they can't get blood from stone.

So if you count credits the Navy gave me, I'm sitting on about 140 credits and only have an AA. I worked on electronics and would love to have an electrical engineering degree but given that I have been arrested and most of the high paying jobs require a security clearance so even though I may be highly qualified for the job I won't get hired. I am beginning to think going back to school(if i can get financed) is not worth it.

I feel like my best option is to play poker because at least those earnings can not be garnished or traced. I'm not worried about my credit score because I buy everything with cash, no need to get ripped off on a loan.

I do think the massive student loan debts are a way of keeping the middle class in check and forcing them to be slaves to the work force.

reply to post by jrod


Well, good luck with all of that plan. I will say that it probably sounds good to you now, and even doable...

But, when you get to a certain age, things catch up. I hope it doesn't but, they usually do and then you are behind the 8 ball already and have to play catch up.

If you agreed to the money, then pay it back. It will be more benificial to you, and if not you, your wife and family.
IMO