school loan companies

whether or not you should attend college isa controversial subject these days. this is because the mantra of higher education we’reexposed to, says that attending college will make you a better and more successful person.this notion has been so ingrained in society that people who question it may be treatedas outcasts. high school students are taught that in order to have a successful career,and thus success in life, they have to start with a college education. it is true thatsome students who did not pursue higher education later wish that they had, but yet, there areother people who went to college that look back, and see their time in college as wastedyears of their life. they either dropped out early or obtained a degree for which theyhave no use for in their current career.

if you don’t think this is a big problem,then you will be shocked as we prove to you that college attendance is in a bubble.“i think, in today’s society you can’t be successful without college.”“i feel like i need a college degree in order to get a job, because it’s hard toget a job with just a high school diploma.” “my dad’s really set on the idea of college…andi also want to go in order to get a good career and…” newscast: “rebecca bradley planned to goto college to become a teacher.” rebecca: “just in pennsylvania for stateschools, a lot of them were 20 to $23,000…i’m

doing the math myself and i don’t know howi’d do this on a teacher’s salary…i have no idea how any of this would work.”newscast: “so bradley abandoned her dream of a college degree and enrolled in beautyschool” andy kessler: “there’s a huge disconnectbetween what colleges are teaching and what companies want in future hires. half of collegegraduates under the age of 25 don’t have jobs or are underemployed. that’s half..that’sa million and a half kids who can’t get jobs…”the perception of the need to attend college has been drastically increasing in recentdecades. today’s generation of young adults see the value of a degree differently thantheir grandparents did at the same age. half

a century ago college was not everyone’srealistic aspiration. in 1970, according to the u.s. census, over 60% of heads of householdshad no college education. back then there were many jobs that were available to getright out of high school. only 26 percent of middle-class workers actually had a highereducation. today 60% of jobs require a post-secondary education.in 1945 only 15 to 20 percent of high school students went to college. this number increasedto 40 percent by 1960. under president lyndon johnson the most comprehensive national legislationconcerning higher education was enacted; the higher education act of 1965. it gave broadfederal assistance to both public and private colleges and individual students. later in1979 we saw the establishment of the department

of education.as government increased involvement over the years, we ended up in the situation todaywhere the average cost for a public university, when adjusted for inflation, has more thandoubled. even though cost is up dramatically, now a majority of high school graduates enrollin college. in fact, according to the national center for education statistics, over twothirds of high school graduates are starting college immediately after high school.for fiscal year 2013, one third of the department of education’s $65.7 billion budget wasappropriated for pell grants for college students. this figure is eight and a half times theoriginal pell grant allocation in 1980 of $2.6 billion.the climate of the college arena has definitely

changed from decades past. we have both amassive increase in students and a massive increase in government grants and loan funding.both these statistics translate into increased costs, and the increasing cost to attend anamerica university is massively outpacing the benefits of actually attending.studies are showing that by this year, half of college graduates have jobs that requireless than a bachelor’s degree. according to the bureau of labor statistics, the numberof college students working minimum wage jobs has doubled in just the last five years. it’sprobably safe to say that these young adults didn’t go to college in order to advancetheir career with walmart or mcdonalds. however, these and similar jobs are the ones that havelowered the unemployment rate in recent years;

giving the government something to tout asa pickup in the economy. add to this the reality that the average student is graduating with$35,200 of total debt, according to cnn last year, and we have a definite recipe for unsustainabilityin college attendance. it was very common in the 1960s and 70s formen and women to pay their way through college on a part time salary while renting a smallapartment. they even graduated debt free. they got the full benefits of a college degreewithout 10 years or more of loan payment debt hanging over their head. today is obviouslya different story. today we have students borrowing tens of thousands of dollars togo to school, and living with their parents while they study and remain there even afteras they pay off this loan debt.

in 1970, a university of utah student spentabout $390 a year on tuition. by 2014 this number has ballooned to $6,700. even whenadjusted for inflation, this means the cost of tuition has almost tripled.if the price of college remained the same as the inflation rate, tuition per semesterwould only be $2,300. the average private school costs is 32,000per year in 2013. according to the college board’s annualsurvey of colleges, over the past 10 years, public in-state tuition for a 2-year collegeis up 57%; a 4-year is up 73% and similarly, private in-state tuition for a 4-year collegeis up by 55%. this increase in college tuition is outpacingincome by 365% for public in-state tuition.

household income has only increased 20% overthe past 10 years according to the u.s. census bureau.knowing these facts, we expect something in the mechanisms of today’s institutions tobreak. during the financial disaster in 2008, collegetuition still rose 5.7% across the board. in a free market this would not make sense;tuition would not rise when there is an absolute collapse in financial capital inside of theeconomy. in the same way the government caused thehousing bubble and resulting crash, it has fueled and will be the cause of the upcominggreat college bubble and crash. nearly 15% of students are already defaulting on theirloans. the official fiscal year 2010 three-year

cohort default rate is 14.7 percent, and wecan only except that to be higher for the following years.no one but the government would guarantee a loan for anyone to go to college, for anycurriculum, with little regards for the likelihood of an individual to repay the loan.the government gladly invests taxpayer dollars into student grants and loans. this is whathas been driving the increase in cost for college tuition, bringing it above and beyondthe affordability of the average student and family.for teenagers, the propaganda is so potent, that high school students in many cases haveblind optimism that they will land their dream career after college and have the income toeasily pay off any student loan balances they

incurred along the way. some graduates areleft with over $100,000 in debt and can barely find any job, let alone the one they picturedthemselves getting into four years ago. as a result of federal loan programs, in thecurrent environment, colleges can raise prices and no matter how rapid the increase is, thepublic will not feel the cost directly. they will however feel it indirectly as their taxdollars go to fund the federal loan programs. there is no incentive stopping governmentfrom paying more than a free market price…until the people become overwhelmingly against thecurrent student loan paradigm. the most probable outcome, as prices continue to increase, willbe that government raises student loan spending in the name of helping the disadvantaged,further compounding the problem.

like any other bubble though, college tuitioncannot rise indefinitely. eventually, something will cause the great college bubble to pop.outstanding student loan debt is over $1.2 trillion. this is nearly 50% higher than outstandingcredit card debt. the longer the status quo is kept, the biggerthe bubble is going to get and thus the larger the crash will be.if tuitions continue to increase around 5% a year, in the coming years student loan paymentswould get so high that it will be unmanageable; even for the students that get the dream jobthat they were told their degree would award them. massive defaults will occur and collegeswill soon be worse off. prices will need to be readjusted to maintain the maximum incomewhen attendance levels crash. professors will

face pay cuts or layoffs along with administration,maintenance, construction and anyone else working for or at a college or university.for decades now, students are sacrificing their standard of living to go to collegejust to get burdened with ever increasing debt. this burden is felt in the whole ofsociety as students live at home longer, get married later, and have less children thanprior generations. like what happened after the federal housingadministration was created, where standard mortgage terms went from five to 30 years,we expect the next step for colleges and government to be to extend the student loan length ofterms. a typical college loan is now 10 years. expect future loans for students to be increasingto 15, 20, and even 30 year terms for a 4-year

education. and remember, college loan debtis already one of the toughest to be forgiven in a bankruptcy.the cost of going to college will soon outweigh the benefits for the average american. thegood news is that demand for cheaper, non-government subsidized education sources will spring up.they’ll come from local communities and from the internet, which in itself is a greatexample of how the free market creates solutions. you can pick any field and the internet canbegin educating a person in just seconds; essentially free.conventional thinking disregards the cost and alternatives to mainstream college educationand continues to encourage students to take on horrendous amounts of college loan debtto get any degree. they think that having

a piece of paper will ensure that you willbe successful when, as many recent graduates are finding out, it does not.students are graduating without the skills needed to get a well-paying job and hencecan’t afford their student loan payments. the cost of this government fuelled bubblewill be felt for decades to come. government is holding the bag for an estimated $1 trillionin student loans. default rates for 2-year federal student loansby 2013 have already increased six years in a row.since just 2004, the amount of dollars of student loans has quadrupled. with the defaultrate at around 12%, there is over $100 billion in student loans in default.due to numerous exemptions, delays and forbearances

for all types of student loans, it’s estimatedthat we’ve just begun to see the day of reckoning for the ’08 and ’09 graduatingclasses. we hope you have learned a lot from our videotoday. it’s vitally important for you to seek alternative forms of education to educateyourself today. don’t follow the mainstream wisdom that has led millions of americansinto debt slavery. instead signup for free at crushthestreet.com/college to get our exclusivereport for which we lay out 10 ways for you to make extra income in this changing economy.