Shock News!!!! AP Let’s Some Truth Out!!!!! (While Adding Some Hilarity!) Student Debt Becoming Burdensome!!!!

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I have no doubt this article was simply to advocate free college for everyone, but, it’s actually a worthwhile read for rational thinkers, even though the title is entirely misleading.

Why student debt is worsening for college graduates

Well, it doesn’t actually tell us why student debt is worsening.  It simply shows that it is.

WASHINGTON (AP) — America’s $1.2 trillion in student debt is having consequences in far-reaching ways.

Ya think?  Really?  Say it isn’t so!!!

College dropouts and students who borrowed to attend for-profit colleges are at risk of default. Many Generation X parents — ages 35 to 50 — are still repaying their debt even as their children prepare to enter college and begin a second generation of family debt. Some millennials are delaying marriage and home ownership until their loans become less burdensome.

Three trends show how the pressures from student debt are compounding:

— FALLING INCOMES

For people with college degrees but no graduate school education, incomes, after accounting for inflation, have declined, thereby reducing their ability to repay their loans. For a 23-to-29-year-old with a college degree, median income in 2013 was $41,000. That figure has plunged more than $5,000 in current dollars since 2000, according to Georgetown University’s Center on Education and the Workforce. The drop reflects a trend dating to 1970 of stagnant income for the college educated with no graduate degree — evidence that the supply of these workers has roughly matched employer demand.

Errr…….  wat!?!?!?!?!  The annual income for college grads has dropped by $5,000/yr since 2000.  It hasn’t roughly matched employer demand!!!!  It has exceeded the demand and significantly so! 

Median incomes have risen consistently for one group since 1970: Workers older than 30 with graduate degrees. But even those gains began stalling before the Great Recession began in late 2007.

— MORE BORROWING

A typical member of the class of 2013 graduated owing $27,300, according to the College Board. This figure has risen $5,000 in current dollars since 2000, a 22 percent jump. College grads who go straight into master’s programs often owe a combined $70,000 by the time they leave. Debt averaged $41,400 for a master’s degree, $71,600 for a research doctorate and $128,600 for a professional doctorate in medicine or law, according to exclusive Education Department data analyzed for The Associated Press.

— LESS SPENDING ELSEWHERE

When incomes fail to rise, every additional dollar in debt comes at a cost: A delay in major purchases, such as cars or homes. This can slow the economy because consumer spending drives about 70 percent of U.S. economic activity.

Ya think?!?!?!?!?!?!?!  So, let me get this straight …… if you don’t increase your income, but, borrow more, you have less money to spend on other things?!?!?!?!??!?!??!?!?  Well, why didn’t anyone tell us this?!?!?!?!?!?!?!?!?!?!!?

In 2013, college-educated heads of households under age 40 owed $4,850 in annual student loan payments, the Federal Reserve Survey of Consumer Finances shows. The figure has shot up by $1,090 since 2001 after adjusting for inflation.

The surge in student debt has corresponded with reduced spending in other categories. Auto loan payments fell by nearly half from 2001 to 2013. Mortgage payments have also dipped, in part because of the housing bubble and a lack of affordability in cities with many recent college graduates.

Surveys show that student debt increasingly monopolizes family budgets. The average yearly grocery budget was $4,719 in 2013 — $130 less than what the Fed said college-educated households owed in loans.

Let’s see ….. after food and student debt, we’re up to ~ $10,000/yr.  Depending upon where you live, $12,000/yr for rent isn’t unreasonable.  Indeed, in some places, which would be the only places to apply some people’s education, that would be a bargain.  Now buy a car ….. pay your utilities …. buy some clothes.

Today, in many places in the US, it doesn’t pay to go to college.  I know a lady, a smart gal, with a business degree from a fine and reputable 4 yr college.  She works as a billing clerk.  She actually get paid well, for a billing clerk, but, it doesn’t have much to do with her education, but, rather, what the company decided to pay for said position. 

When you read this article, it may occur to some people that one must then, pursue a master’s degree.  Some should.  Most should not.  You have to ask the question, ‘how many master degree holders do we need?’

The best advice I can give young people today …… go to work.  Find a job which pays adequately.  Scrimp and save.  Buy a house.  Then pursue some advanced education.  It currently doesn’t pay.  And, you end up working for people less educated, but, with more experience and expertise in the vocation you choose, anyway. 

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18 Responses to Shock News!!!! AP Let’s Some Truth Out!!!!! (While Adding Some Hilarity!) Student Debt Becoming Burdensome!!!!

  1. Latitude says:

    …exactly right!
    It’s a funny world….I know a nuclear physicist that sells real estate….she’s really good at it
    …a PhD marine biologist….that runs a construction company
    etc etc….one thing though that we all seem to have forgotten
    The purpose of education…is to teach you how to learn
    …and we’ve let our educational system get away from that

  2. gator69 says:

    My advice is the same as Mike Rowe’s…

    With a two year degree in diesel mechanics, and a few years on the job, one can make six figures. Plus the demand for diesel mechanics is high, unlike the demand for African Dance majors.

  3. Larry Geiger says:

    Go. To. Work.
    If you don’t have a job, get one.
    Do not go to college.
    Unless, you are eminently qualified to be a:
    Doctor
    Dentist
    Veterinarian
    Engineer
    Architect
    etc…

    You want to write? Get a job. Write. Do not go to college. Yet.
    You want to work in business? Get a job. Many places will pay for your BS. Good places will pay for your MBA.

  4. DirkH says:

    ISIS moves vehicles, weapons near Mosques because Russia won’t attack there.
    https://www.rt.com/news/317811-isis-moves-military-hardware/

    Mosques have been the weapons chambers for 1,400 years. I’d flatten them first.

    • DirkH says:

      Related: Saudi declares Jihad against Iran, Russia.
      http://www.zerohedge.com/news/2015-10-06/saudi-clerics-call-jihad-against-russia-iran-nato-warns-airspace-violations
      Which means, hard times for the Muslims in Russia (as some of them will now doubtlessly commit jihadist attacks).
      Also: expect the Houthis to get more effective weaponry…

      • suyts says:

        Well, it’s always been about expanding the Sunni sphere of influence. On a different note, I honestly don’t believe the people of the US will tolerate a war defending Muslims, right now.

        • DirkH says:

          The deal was, Saudi sells oil only in Dollars, and gets military protection in exchange.
          This deal has been cancelled by Obama, who focusses on Iran instead to make it the local power. Competing with Russia there.
          Saudis are pissed, might start selling oil for Euros, Gold, Yuan.
          Now they piss off the Russians as well.
          Leaving them hanging in the air.
          USA will not come for help.
          I think the Saudis already have their exit planned, pump as much oil as they can, country be damned, they’ll just evacuate and let the Arabs … pound sand.

        • suyts says:

          Dirk, I think you could be right, but, it doesn’t make sense to me. Sure, Obama is a Shia. And, yes, we’ve canceled their protection …. sort of. But, we both know ISIS is a Saudi invent. Very soon, Obama will be gone. And, it’s very likely the next prez would have been much more friendly to Saudi than Zero.

          I understand the Saudi’s pumping oil like crazy ….. it serves a twofold purpose in strangling their rivals from needed capital, but, also suppressing oil expansion. But, it’s foolish. Essentially, it seems to be a strategy of currency correction? ….. but, the bigger players have more oil! Once the price of oil rises to beyond the cost of extraction, all of the wells, and hard oil mines will fire right back up!

        • DirkH says:

          Allegedly the falling out between Saudis and USA has a lot to do with the USA raiding the private allocated Gold accounts of the Saudi family in Switzerland – after USA’s crackdown on UBS, under FATCA pretense.

  5. David A says:

    Yes, the O’s father was Shia, but I see little in his actions that favors one over the other.

    Iran is Shia dominant, both politically and in population, and Iraq now as well. Syria is/was Shia dominant politically, but Sunni majority. The US backed rebels are Islamist, Sunni mainly, affiliated with Al Qaeda. Yet ISIS is also Sunni based, as are the Taliban in Afghanistan.

    The entire ME is quite the mess, and my only objection to Putin is the support of Shia dominant Iran, not because they are Shia, but because they are a State, and are developing nuclear capacity and with sanctions lifted, can focus on Israel. Yet Putin’s actions have Shia resources, Iran and Hezbollah, focused on Syria instead of Israel! Not certain of Putin’s end game though.

    I think he wants Old Russian greatness minus the serfdom perhaps. (Circa Catherine the Great with respect throughout Europe and the world.) What would he bargain for the lifting of sanctions, leeway in Crimea, and a renewed position in the M.E.?

    Islamists are both Shia and Sunni, and both are indeed best kept killing each other. The thing is Putin knows this, but I guess he wants his water port and access to oil. Yet he knows Jihadists are a great threat to Russia, and many of the Sunni forces in both Syria and ISIS are radicalized Russian citizens, so he is happy to have them dead and not retuning to Russia after the conflict.

    Shia Hezbollah, sponsored by Iran, and the arm of Iran threatening Israel, but now engaged in Syria, fighting Sunni radicals, and is eagerly awaiting Iranian money with the prospect of lifted sanctions so it can get back to attacking Israel.

    In this manner it makes sense for the western world to keep the Sunni Islamists active against Assad. It also is fine that Shia forces such as Hezbollah are losing some strength.

    In the mist of this mess is Obama, and his actions, like the entire M.E., are contrary as hell. He supports Sunni MB in Egypt He supports Shia Iran with appeasement and allows them monetary resources to both attack Israel, defend Shia Syria, and to develop nuclear weapons. He abandons Iraq to Shia Islamists factions. Ditto now for Afghanistan, but to Sunni Jihadists. And he shows support for Sunni Islamists in Syria, and bows to Sunni Saudi’ kings.

    Hum? anything in common to unite Obama actions. He appears to oppose any strong arm that represses Islamists, either Sunni or Shia. Where? In Egypt, in Syria, in Libya, and in Iraq. He supports Iran, while countering Iran in Syria. He minimizes the real threat of Sunni Islamists; “Al Qaeda is a small band of men”, and “ISIS is the JV team” and does almost nothing to combat them. No matter where he goes, Islamists gain greater control.

    It is a funny old world.

    • DirkH says:

      Iran is part of the BRIIICS bloc (the other I’s being India and Indonesia).
      The Shiite swath from Iran to Syria would be a protection of the Eurasian empire at its SW flank.
      ISIS, Al Qaeda in Syria are likely SOCOM and a few bearded savages as decoration.
      As they have US sat intelligence, the SOCOM guys dig in (enter their bunkers) before Russia bombs, leaving the savages to run for their lives.
      Of course the supply line is interrupted now. Maybe they’ll be evacuated.

      • DirkH says:

        And, when not busy pitying victims of mass shootings and demanding gun control, Obama has 50 tons of small arms ammo airdropped somewhere into the hottest civil war of the planet. Hoping his GOOD islamic extremist sunni terrorists pick it up and not the mythical BAD islamic extremist sunni terrorists from ISIS.
        http://www.zerohedge.com/news/2015-10-12/us-paradrops-50-tons-ammo-syrian-rebels

      • David A says:

        Crazy, as I said, “Putin’s actions have Shia resources, Iran and Hezbollah, focused on Syria instead of Israel! Not certain of Putin’s end game though.”
        Not certain of Obama’s game though either. I hope they do not take the weapons drop and run to the Palestinian’s with them. If however they battle the Syrian and Iranian Shias, I am ok with them weakening each other.

        • DirkH says:

          “Crazy, as I said, “Putin’s actions have Shia resources, Iran and Hezbollah, focused on Syria instead of Israel! Not certain of Putin’s end game though.””

          You think it’s crazy to build an allied power bloc from the Persian gulf to the Mediterranean, wrestling control from the USA?
          Why would Putin attack Israel? Gazprom helps Israel exploit that huge gas field off the shores of Israel. Which stretches up to Syria by the way.

  6. David A says:

    Oh, Putin is not crazy. The O and the small band of JV Islamists (the entire middle east) are crazy. I am not concerned with Russia attacking Israel. I am not concerned about a strong Russian presence in the ME, as long as he does not significantly advance Iranian weapons technology. That concerns me. Most of the ME is Sunni. We will see how this Shia alliance expansion plays out.

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