Student debt now stands at $1.41 trillion. 70% of college students are in significant debt, 44 million students and graduates. 33% of people over the age of 25 have a bachelors degree or higher. While it sounds impressive, the percentage is actually lower than it was before student debt was initiated in 1958, before the debt was a federal obligation. 21% of public university’s revenue is made up from tuition and fees, the rest is subsidized. 90% of revenue of private universities is funded through tuition and fees. The government spends over $80 billion on college students annually which is higher as a factor of GDP than Germany, France, Canada, Japan, Spain, and Italy who provide instate free education.
Primary education in the US, on average, tops at roughly $13,500 per student per year, funded by taxpayers. So where is all the money going? 40% pays for pensions. Another 10% is applied to administration, and of course now we have interest on school debt, purchase of buildings, outside services, etc… How much is actually spent educating? Pennies.
Blame Betsy Devos… Inane. She inherited the entire broken system that took 60 years to create!
As of 2018, outstanding education debt had tripled over the previous 10 years! That would be aka – Obama. And it would seem interestingly coincidental. If you want to control the youth – enrage and enwrap them in debt while indoctrinating them into a Socialist agenda of free everything. I think it is called A Perfect Storm.
While many pundits would cite Germany’s model of free college, they dutifully forget that in Germany, college is a privilege for a select few based on whether the government determines you qualify for college or should instead benefit from ‘trade school’.
While I believe the notion of a trade school is beneficial, when the government makes the determination where you go, it, the government, owns your life. That is called Communism.
It all fell apart under the Eisenhower introduction of the National Defense Education Act of 1958 which was launched to increase the number of science and math graduates. Richard Cornuelle saw an opportunity and created United Student Aid Funds. Private industry would back bank loans on behalf of college students after they exhibited rigorous potential for repayment based on guaranteed jobs upon graduation. The model was a success! Student loan delinquency was 20 times lower, and job placement was $22.50 per student under the private plan. Comparatively, the Federal Jobs Corps spent nearly $6700 per student during the same time period. And today that cost is $76,000 per actual placement.
In 1965, despite the success of Cornuelle, President Johnson signed the Higher Education Act, as part of his Great Society Agenda. As a result, the government began a ferocious scheme to hijack the private institutions student loan programs and in 2000 under Bill Clinton Cornuelle’s vision was bought out by Sallie Mae for the sum of $770 million whereby the Federal government took over a successful private endeavor.
In 1999, the total outstanding student debt stood at $90 billion. Ten years later, student debt grew by 511%. And the percentage of students graduating with a degree in math or sciences was roughly 20%. Give it to the government to fail a successful private endeavor.
Today we offer degrees that have absolutely no benefit whatsoever in the job market, that cost the student in loans, that absolve any necessity in obtaining the degree, and further no value. But hey, colleges want students and will offer whatever it takes to mobilize the thought that without a degree you are nothing… even if the degree is in dog watching.
Even if that degree is in – nothingness.
And still we wonder how it is that a person can graduate with a college degree in ‘communications’ and not be able to find a job outside of hamburger flipper at McDonalds while balancing a loan debt of $100,000?
Once again, the brain drain of this stigma can be found as a perpetual head thump – ‘if you don’t go to college you will make no money – and if you do, you can be a millionaire’. Of course, many of the brain thumpers – never went to college, but that is rarely observed.
So what is the real point?
Money. Control. Indoctrination. And universities are all too eager to Swamp their pockets with this scheme funded – by taxpayers. Ultimately, WE pay for the defaulted loans, WE pay for the scholarships, WE pay the liberal arts degrees that have no inherent value!
Unfortunately today, even our esteemed private foundations that support foundations, that support NGO’s that support government funding of private enterprise – are mired in a clandestine middleman phenomena that basically redirects funds from the cause they claim to support, to the various councils and committees, and board members therein ultimately creating a Ponzi scheme within a Ponzi scheme within a Ponzi scheme so as to divert funds from the actual cause to a host of people with degrees and money from the poor they despair! WHEW!
All within the pretext that ‘The Government” is helping the disadvantaged.
Lumina Foundation is the successor of Cornuelle’s vision, albeit within a somewhat distorted version of the initial schematic. You see, Lumina’s largest grant to support college education for the needy went to the OECD to fund an ‘analysis of the labor market’. They gave money to the Rockefeller Advisors! And they have given massive amounts of money to New America Foundation whose executive Chairman includes Google’s Schmidt.
In essence, Foundations are giving the funding to each other, benefiting no one other than themselves, while receiving a non-profit status of NO TAXATION.
So where is our Education money going?
It is lining the pockets of the super wealthy who create Foundations funding their own Foundations. Want to know who is under cup number 1? Gates. Clinton. And once upon a time – the US Department of State.