Wednesday, July 14, 2010

Predatory Education

I regularly read Carolyn Baker's blog "Truth to Power" and John Michael Greer's "The Archdruid Report". While I likely have little in common with their politics (and that is a shame; I don't know why the denizens of the Left do not embrace Libertarianism more), both of these folks have an uncommon ability to think for themselves and express their thoughts succinctly (if I may be permitted the use of understatement).

If you have time to peruse their stuff, I highly recommend it (keep in mind that unless you are a "true believer" in their cause(s) some of their brilliance will needs be gleaned from the inane political commentary... much as some of you feel about certain other bloggers...).

Here is the passage that struck me from Greer's blog:

A hundred years ago, by contrast, a student pursuing a scientific or engineering degree might need half a dozen textbooks for the entire course of his studies. Every chapter, and indeed every paragraph, in each of those books would be unpacked in lectures, explored in lab work, brought up in tests and term papers, so that by the time the student graduated he had mastered everything those textbooks had to teach. That depth of study is almost unheard of nowadays, when students shoulder half a dozen huge textbooks a term, and have so little time to process any of the contents of any of them that the bleak routine of memorize, regurgitate, and forget all too often becomes the only option.

Combine that with the transformation of much of American higher education into a predatory industry fueled by aggressively marketed student loans, and every bit as focused on quarterly income as any Fortune 500 corporation, and you have the collapse of our educational system sketched out in a recent and harrowing blog post by former professor Carolyn Baker.
The predatory lending that occurred in the mortgage business over the past decade PALES in comparison to what is being done to young people by the college/student loan industrial complex. Over the past 50 years a compact has been reached between our Corporations and our Universities. One simply cannot get a corporate job without an undergraduate degree in most fields (programing and entertainment are notable exceptions among others). Corporations now have "enlisted men" and "officers", with the officer's "commission" coming from the Universities in the form of an undergraduate degree.

(Since medieval times militaries have been polarized into haves and have nots. The commissioned officers came from the aristocracy and nobility and the "enlisted men" came from the commoners. Today's dividing line? An undergraduate degree.)

The Universities recognized the new power structure and began extorting monies from the masses of young people with mafia-like enthusiasm. "Wanna be able to work? F**k you, pay me. Can't pay? No problem. This loan shark will be happy to help you out." Then, this unholy duo, knowing just how badly they are duping these kids, uses their muscle to elbow into Federal Bankruptcy Law and carve themselves out an exception. No matter HOW PREDATORY their lending practices were on the young and impressionable students these debts could not be discharged in bankruptcy. I wonder if they consulted Roman Polanski on how best to take advantage of these kids?

The general rate of inflation over the past 30 years has been just under 3%. The rate of inflation for tuition at private colleges? Just over 7%. The rate of inflation for private sector wages? Just under 2%. It does not take an undergraduate degree in mathematics to plot this on an X & Y graph.

One last thing. To you parents out there considering letting your children go into big time hock for their education: Hope you weren't looking forward to grandchildren. The new Pox, if you will, in mate selection is a toxic level of student loans. It is the mirror image of marrying into a wealthy family. Markets are not stupid, even marriage markets. Young people have this one down: "Got debt? Get lost."

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The 99ers. I had not seen that moniker before. It refers to people that were on unemployment for 99 weeks (nearly 2 YEARS) and that, as of now, cannot count on anymore largess from the taxpayer.

(I met a fellow here in Tennessee last week that had moved here recently from California. He was a "99er". After his benefits ran out he left California and took a job here cutting down trees. A big man (borderline obese yet burly; the biker look), he looked to be in his mid 40's. He told me he had a hard time getting used to manual labor again but that he had no choice - he needed a job.)

I have written about this before. Many Americans will need to be FORCED into making other arrangements as our total debt (monetary deflation) and oil supply contracts. Who in their right mind would willingly leave behind a $585 a week unemployment check to work cutting down trees in the Tennessee summer heat for $600 per week (BTW, $585 weekly in California is poverty level while $600 here in rural Tennessee is a living wage)?

This is simply the way it is.


"I understood the president and Congress had to stabilize the banks, get Wall Street going. I figured something would be done for middle-class Americans, that they couldn't abandon us. But I was wrong."
This unfortunate man is no longer middle class. Most Americans are as poor as church mice. They just don't know it. New cars, new houses, vacations... might be good for the economy, but they are hell on the people not saving because they are consuming. There is a skill set to being poor, and having grown up without 2 nickels to rub together I can speak with some authority on the matter (and its not so bad! No, you won't have any bling, or an SUV with spinning rims, or myriads of other silly sh*t that one just does not need or the friends and lovers that come with this stuff). Funny thing is, its the same skill set for maintaining any wealth one might accumulate. Too bad our colleges and universities cannot teach THIS skill set... it might be worth it.








5 comments:

PioneerPreppy said...

Everyone points out the costs of higher education and how it has risen while mentioning student loans. Yet few look at the actual demographics of the students and how it has changed with the costs (or is that because of?)

Educational spending has become little different from social/welfare spending and student loans have become almost the same as toxic home loans. Minority grants have also risen and title 9 initiatives have gotten out of control.

The largest growth in sub-prime home loans were single women before the bubble burst and since government subsidized educational loans have come around women make up 65% of the college students.

I at least see a pattern here.

My last point which is on somewhat dated experience has to do with the loan/grant combination. It used to be quite common for college students to pay for classes with one while living off the other. Not sure if that is still common but it racked up alot of needless debt that a part time job would have taken care of.

Dextred1 said...

Pioneer,

If you qualify for Pell grants I think it is 5600.00 at max, unless they raised it and I got offered 11,500 last yr and I think 12,500 this yr for loans. Goes up every yr from freshmen to senior yr. The Graduate loans are even more outrageous, something like 20,000 a yr. I am not sure how the Pell works after undergrad. I think I have about 3700.00 in loans now, I buy my books cash, try to pay for classes cash, but it is very expensive and I have a growing family. Most people pay for school off of pell and blow their loans. I have a couple friends that just bought all new furniture with the loans. Can’t forget the New plasma. It is cool though, it is not like they have to pay the money back. Well not yet at least.

tweell said...

My brother used the GI bill and lived with the parents while getting his engineering degree. He got sucked into the student loan racket to the tune of $20k even so, and regretted taking the easy money. Where he really went wrong is getting married to a predatory woman who had a $90k student debt. That three year marriage wiped her debt out, plus got her new toys, while my poor brother had to go back and live with the parents for another year to recoup.

PioneerPreppy said...

Post grad work used to be the stafford (sp?) loan? and I forget the grant name. If I remember right it changed from the pell.

Ya Dex thats pretty much as I remember it although the max was 2K for a pell grant when I went. several of my fellow students would buy high dollar items when the loans came in.

Of course that was undergrad. Paying for graduate classes SUCKED. Grants are harder to get and courses cost alot more. Honestly I don't remember any grad students pulling the grant/loan living like the undergrads. That was years ago however I am sure it is different now.

PioneerPreppy said...

Twill

As an interesting twist there was a years time (which happened to be when I joined as enlisted) in "84" when the GI bill wasn't available.

After a few years they went back to cover the gap but I had to go the first year of college without it. Since I contracted ROTC after that I was able to swing college with just a pell grant, the ROTC/Reserve pay and a part time job. I only took out one student loan ever for a paltry 1K and let me tell you that loan haunted me for years. In the end I actually got a check from the US government for almost 2K because they never stopped charging me for it. It took almost 12 years to get it all straightened out and I ended up paying it off three times.