student debt

Department of Education & The GAO; Audits & Incompetence

Posted on by Helena

The Liberal left are miserable given Trump’s statement regarding his desire to eliminate the Department of Education;  children will have no schools – there will be no money for special needs – our education system will collapse…   It already did.

The Department of Education:  Their last audit for September 2023 financial statements was a disclaimer –  “KPMG has not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because of unresolved errors KPMG identified in the underlying data, we do not express an opinion”. 

In the world of accounting this means KPMG, the auditor, is covering their arse because the financials are ‘misleading and/or unrepresentative of truth’.  The Financial Statements did NOT delineate expenditures – in any definable mode.   Although it did assign $812 million to ‘unknown and improper loss to Taxpayers while identifying “Climate Related Financial Risk”  

They spent $100 million on ‘equity’ K thru 12.  Their largess liability is loans which is what they owe back to the Treasury for over-spending.   Their largest Receivable is student loan debt which they are cancelling.  Meaning they could effectively add an additional $1.3 trillion to the Treasury Deficit if they successfully write-off their entire Asset Base.

Income and expense statements typically provided in every financial report are non-existent, MIA.   There is no breakdown of departmental use of funds – which could be a huge basis for KPMG refusing to grant them an audited opinion.  They Are Rogue.  And ANY low life accountant would fear having ANY relation with such a dervish entity given liability and LAWSUITS.

The entirety of their Assets are based on Loan Receivables to students which continue to be forgiven under the Biden Regime.  In 2023 that amount was $94 billion.   The Department’s appropriation of $881 billion in CoVid funds represents nearly 1/5 of the total $5 trillion.  $6.4 billion of CoVid aid was sent overseas.  CoVid funds cannot be traced or accounted for – by the Government Accounting Office.

The government being handed to Trump is a veritable Financial nightmare – MESS.  More than we can possibly realize – it is based on fraud.    Every agency tied to The West is based on Fraud (including NATO which I previously posted in a blog).   The money doesn’t exist.  The debt is likely 500times what is revealed as a direct result.   The US is literally well beyond broke and is hoping to blame it on Trump when reality sets in.

Running America on the backs of lawyers instead of monetary fiscal accounting and economics is our demise.  Lawyers have zero proficiency in finances, taxes or economics..  As a result, they created the Government Accounting Office.    

Gene Dodaro is head of the Government Accounting Office.   He has a BA in liberal Arts.  But to make it all make sense – they gave this BA of liberal Arts, Dodaro, a few awards to elevate his appearance of diligence.   In the Accounting world – a BA is liberal arts – a BS degree is quantitative Accounting.  He is NOT an Accountant.   He is NOT a CPA.   He is NOT an Economist. 

Having graduated college in 1973, he worked his entire career within the federal government.  His title in the GAO is “Comptroller”.  In the real world, Comptrollers are responsible for the preparation of all balance sheets, income statements, internal controls and audits.  The previous US Comptroller was David Walker, a CPA who also completed the CAPSTONE program for flag rank military officers.

As a former CPA/Comproller/Finance Director – we used to joke about small corporations hiring their wife’s, sister’s best friend who knew someone who took a couple bookkeeping classes in high school.  To save money.   But we are talking about our Federal Government hiring incompetents who have never actually worked in any capacity as an accountant – running the financial apparatus of our entire COUNTRY.

It makes sense IF the reason was exactly because he was uneducated, an appointment originated by Obama.  It portends to the extant of financial MESS throughout every single government agency for which KPMG is the ONLY auditor.

NATO fails its audits – our government agencies fail their audits – the Department of Defense is missing $33 trillion – no wonder they need to confiscate Syria’s Oil and Ukraine’s $13 Trillion in resources!   To Cover Their ARSES.  To use war as diversions from the financial devastation that they blame on Social Security!

How Dare THEY!

In essence, Dodaro was chosen specifically for his LACK of acumen.   He never held a job in accounting, or finance, or economics, or anything prior to assuming his position in the government.  Trump is inheriting this – he will be tasked with fixing it – and be blamed for its crisis levels.

The first federal student loans were made available in 1958 through the National Defense Education Act (NDEA). Eisenhower was president.  The Eisenhower who Patton claimed wanted the US to lose WWII.  The NDEA was a response to the Soviet Union’s launch of Sputnik and was intended to help the US compete in science and technology. The loans were only available to certain students, such as those studying engineering, science, or education. 

Biden’s Student Loan Forgiveness – A Ponzi Scam

Posted on by Helena

Biden is desperate to find something positive in order to promote voting for Democrats in the 2024 election.   After being gob-smacked for his The Economy is Great campaign, he is now relying on his student debt relief as a ping in his favor.   The Supreme Court already turned down his proposed massive across the board relief, so how is he manipulating Laws to grant loan relief?

Plan B is equally unconstitutional given it does not apply to the General Welfare, but instead to a ‘select group’ he created:  1.  Borrowers with balances greater than what they originally borrowed,   2.  Borrowers who have been in repayment for at least 25 years,   3.  Borrowers who attend programs that did not provide sufficient financial value,  and 4.  Borrowers who never applied to other relief programs for which they are eligible.

The justification being used is the Higher Education Act of 1965.  $6 billion of the loan forgiveness Biden is touting is actually a lawsuit settlement, Sweet vs Cardona from 2022.  NONE of the relief will take effect until summer of 2025 and NONE is guaranteed as negotiations are still being mapped.   In essence Biden’s Twitter Tweets regarding his accomplishment of debt cancellation for students is Disinformation.  It is propaganda.

Legal action can not be taken against the plan until the plan is finalized.   At which point lawsuits will prevail as they did with his Plan A.   It is simply Democrat fodder for Election 2024.

The 1965 HEA Act was signed by Johnson as part of his Great Society agenda:

It increased federal money given to universities, created scholarships, gave low-interest loans for students, and established a National Teachers Corps. The “financial assistance for students” is covered in Title IV of the HEA.

There are 45.3 million borrowers holding student debt.   The interest rate on loans ranges from 5.5% to 7.05%.   25% of student debt is for $10,000 or less.  Over 100 people owe more than $1 million in student debt.   10.8% of borrowers default in their first year.   The default rate is highest among blacks at 17.7%.   According to The Department of Education, a default can be forgiven upon death or fraud…

The total outstanding balance on student debt is $1.77 Trillion.   IF Biden is successful, he will reduce the outstanding debt to $1.37 Trillion – or 22%.   However, loans will continue to be made throughout 2024 and 2025 without ANY modification to the means and rules.

The rule within Biden’s Plan B, #3, is likely to be the most controversial.   Students who graduate with a major that earns them zero gain in the employment industry is a ‘choice’.   For Example:   As of Today Harvard, University of Florida, University of Texas, NY University, and Stanford, provide a new class entitled, “Taylor Swift”.   Obviously, this Class/Degree program is highly unlikely to benefit ANYONE financially – except Taylor Swift who is likely given an override fee.

There are a host of degrees that are currently termed useless – unless – one extends the degree into a specialty field, Masters Program, thereby ensuring the University of more Money:  Psychology, Philosophy, Language, Ethnic Studies, Culinary Arts, Creative Writing, etc…  In addition, most students now take a minimum of five years to earn a bachelors degree.

The College Degree scam is a Ponzi Schematic. 

For decades colleges have falsely advertised that a college degree guarantees higher wages and successful careers.   To make matters worse, many colleges offer bought and paid for degrees offline.   For Example:  It has been speculated that AOC never actually went to any university based on her acute lack of knowledge and any pictures to uphold her claim.   In fact, colleges will sell not only a degree, but transcripts as well to uphold the lie.   A mill.

The overall college entrance rate is 38%.   However, the graduation rate is as low as 20% and averages at roughly 40%.   By Contrast – Trade schools concentrate on specific training in a field that is marketable, are upwards of 1000% less expensive than college, and take half the time.  The supposed ‘disadvantage’ is that a student doesn’t get the College Experience.   You know, the hazing, the drinking, the brawls, and hookups…

In the meantime, like everything else the government handles, there is no actual solution to the student loan crisis.   In order to repair the problem, universities need to make guarantees.   They need to drop course work in Taylor Swift studies.   They need to be accountable to students in terms of their careers – instead of the almighty dollar.   The fault needs to be mitigated – not the result.

There are nearly 6,000 colleges in the US.   They vie for students by making false claims and vie for government money to uphold their extravagant spending.   Harvard’s annual budget is now $5.4 billion of which just $1.2 billion comes from student loans and payments.   The vast majority of Harvard funding comes from the Federal Government/US Taxpayers.  Truckers and Machinists and Cooks are funding Harvard.  The government agencies include:  DoD, NIH, CDC, DHHS, and NSF.

Harvard’s Net Assets/Endowment stands at $50.7 Billion – nearly 10 times its annual budget of which 63% is spent on wages and pensions.  WHY does it continue to receive Taxpayer funding?   It boasts a surplus each and every year.   WHY does it continue to receive taxpayer funding?   This is the problem the US Government needs to FIX.   NOT student debt.   This is the source of irresponsible spending for which US middle class taxpayers foot the bill – and this represents ONE example of nearly 6,000 Colleges.

OUR Government has usurped their power as provided in the US Constitution over and over again.   POWERS must be stripped.   At every level.

US Student Debt: Ask Bill Gates and New America Foundation – A Ponzi Scheme

Posted on by Helena

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.  

What Happened?

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.

US Education: A Broke Back Mountain

Posted on by Helena

When one thinks the daft couldn’t get more daft, one might be rather daft….   In light of the tee-shirt slogan worn by a majority of college liberals which states “I don’t have time for hate, racism, misogyny, albeism, homophobia, Islamophobia, transphobia, bigoty” – segregation is required.   (Full disclosure I had to look up albeism).

As a result of their intolerance of the intolerable, and the need to have safe spaces, students now require segregated graduation ceremonies and segregated dormitories based on ethnicity, religion, identity, race, etc..

And a full 72% of colleges are apparently willing to comply.

It will be interesting to see how this lavishly daft intolerance survives in the work environment when these self obsessed students can’t whine and cry and demand the world conform to their ‘safe place’.

With titles such as Lavender Commencement, Gesta Latina Commencement, American Indian Indigenous Commencement, Don the Kente, etc… Virginia Tech boasts 10 different diversity ceremonies which are technically illegal under Discrimination laws.

Within this vein, Georgetown students have voted to increase tuition in order to create a pool of money to pay for ‘reparations’. The catch? The increased tuition is for ‘future students’, not them. And the extent of this generation of selfish self-consumed whiners is not just a product of a failed education system, but of a failed parent system.

Who is minding the children?

Over the last two decades, the number of children in full time daycare under the age of 5 hovers at 86%.   Four and under is 66%.   Daycare employee qualifications vary by state although most require a high school diploma or equivalent. The average entry pay is $10.50 per hour. In Washington DC a parent can expect to pay $36,000 per year per child for daycare. On the low end, in Mississippi, daycare runs about $8,000 per year per child.

For a family of four including 2 children, daycare can run from $16,000 to $72,000 annually or a mean of $44,000. That would be breakeven. With a mean salary in the US at $43,000 per year, there obviously comes a point where daycare is simply ludicrous. Aside from the financial cost is the social cost. The generation raised by an institution is coming of age. Their morality, ethics, values, and virtues have been impregnated by strangers who come and go within these institutions, and we are now witnessing the end product.

After paying a mean cost for daycare for 12 years – a total of $528,000, parents haven’t the funds to pay for college.   In 2009 when Obama reigned, student loan debt was $675 billion, today it has risen to $1.465 trillion representing 44 million borrowers, 10% of whom are 90 days past due. The debt has become so untenable that suicide is contemplated as the answer.

It has been likened to the concept of Socialism for the wealthy and Capitalism for the middle class and poor.   In other words, the next generation will wholly squeeze out all but the wealthy for a college education.  And there is no solution…

As we have recently been made aware, wealthy does not align with intellect. Bribes would seem to be the mainstream means of attaining a degree for the party lovers whose parents indulge the system. As such, some pundits point to Germany as a prime example of how an education system should work – free.

But of course, that isn’t the entire story.

When reviewing the percentage of college graduate rates around the world, Germany does not even make the top ten.   Canada is number one, Japan, Israel, Korea, UK, US, Australia, Finland, Norway, then Luxembourg rank highest in that order   All these countries are subject to a college cost, although it is somewhat lower than the US.

In Denmark where college is free, and a $1000 per month living stipend is available, they have found that students take advantage of the system and spend 6 years completing a 4 year degree because – well – it is free!   In addition, only 12% of the population actually attained a bachelor’s degree or higher, while 14% attained a technical or vocational degree, far below the graduation rate in the US which is roughly 48%.

Obviously, free is not the answer.

Pensions. In Canada, teachers pay 11.5% into their pension plan. In the US it is as low as 2% for a lifetime benefit.   The average teacher pension in Canada is $49,000, while the average teacher pension in the US is now $75,000.   That translates to reveal that a teacher’s average pension is 74% higher than the average salary.   In addition, teachers in 35 states also collect Social Security benefits. In Israel, the average pension for all retirees is roughly $33,000 per year.  The discrepancy is huge!

In essence, the pension system, the US labor unions, are the crux of the education cost problem given the average lifetime for receipt of a pension far exceeds the value of those dollars invested causing the cost of tuition to continually spiral.

The education system begins at the beginning – daycare.

As the cost of daycare continues to implode, the crisis of working parents scrambling to meet the cost while relegating their children to be raised by institutional high schoolers, is a cruel alternative. Free child care is hardly the answer. It will simply become a free-loaders babysitter, and a service that is already indoctrinating your children, will become the Communist agenda.

Retraining parents to have a sense of worth in raising their own children, in having a physical and emotional hand and foot in their elementary education will ultimately curb the cost of social daftness.  Overhauling the entire government pension system will help make US university graduates walk away with considerably less debt.  And a solid parental involvement just might create a healthier intellect, and thus subject their children to grants and scholarships…