While the Democrats and Republicans fight and argue over what to do about repealing and replacing ObamaCare which is almost in full-crisis mode, no one seems to be looking at the Student Debt Crisis and the potential implosion of higher education. Maybe everyone hopes to put that off until the 2018-2019 Federal Budget, because there is no more money left if we return our US Military to full-readiness and take our ObamaCare losses (cut and run) then replace it with something that at least has a running chance.
The was an interesting article on MSNBC Money page on June 7, 2014 titled; “Obama to issue order easing student loan debt pressures,” which stated;
“Obama will issue an executive action on Monday aimed at making it easier for young people to avoid trouble repaying student loans. An order directing the secretary of education to ensure that more students who borrowed federal direct loans cap their loan payments at 10% of their monthly incomes. Federal law currently allows most students to do this already. The president’s order will extend this ability to students who borrowed before October 2007, and who have not borrowed since 10/2011.”
Additionally, the article noted the Obama Administration is trying to help 5-million borrower stay out of default stating; “Many student loan borrowers are working and trying to responsibly make their monthly payments, but are nonetheless struggling with burdensome debt.” Now for some tough questions:
1. Why are we subsidizing higher education which refuses to innovate and adapt to the new paradigm of instant information and a changing of our workforce demands.
2. Why is the Obama Administration further propping up a bubble, didn’t we learn anything from the subsidized housing bubble?
3. Why is nothing being done to reign in tuition costs which have outpaced inflation every year by a factor at least 5% or more for the last 2 decades?
4. Why are we busy economically enslaving our next generation with worthless degrees in industries that will not exist in the next 5-10 years at all?
Indeed, as the founder of a Think Tank that happens to operate online, I hate to be a party pooper, with a giants super-duper pooper scooper – but it is time we addressed these real concerns, as the problems with the student loan debt are getting bigger every years, actually every semester. Have you seen the numbers now? Over 1.4 Trillion in outstanding loans, and 45% are 90-days or more in the rears or have never made a single payment – all the while students are graduating with degrees for which no jobs of those type exist. Please consider all this and think on it.