college...the most notorious time in a youngadult's life. a time for experimentation [same sex kiss], no we're not talking about thatkind! we meant experimentation in learning new things outside the box. but today's collegeis one-size fits all drivel, labeled as 'education,' that's very often a waste of time...for thosewho regret the multiple two day long hangovers from frat parties. these days, it's almost cliche to say studentloan debt is your excuse for being broke. but it's no joke; the cost of tuition andfees have outpaced overall inflation for decades. for young adults, attending college is anexpected obligation. we're all taught in high school, "a college degree increases lifetimeearnings by a million dollars on average.�
but not all degrees are created equal. we'regoing to show you how the college of today is much different than your parent's college,and the end result may not actually be worth it for the 70% of high school graduates enrollingin higher education. this is the college bubble two point o let's start off with a simple fact that mayshock you...in just the past three years, there are twenty-five times as many collegesand universities charging over fifty thousand per year in tuition. in the same three yearsthe average american worker's wage has only grew by a lousy two percent. because of the rapid increase in tuition,today's students need to take on much more
debt to attend than ever before. at ohio universities,working full time for minimum wage year-round would leave today�s student about thirty-twohundred short of being able to pay their tuition, fees, room and board. thirty years ago, minimumwage was enough to pay all the same college bills and still have thirty-five hundred leftover. paying for college has become increasinglyout of reach for the average attendee. the amount of college loan debt has more thantripled in the last 10 years from just 400 billion in the year 2005. now there's overone point three trillion in student debt in the united states. over forty million americanshave college loan debt. the average balance is nearly thirty thousand dollars.
what's even more scary about the student loanbubble is that a third of graduates with loan debt are already missing payments. this makes450 billion dollars of loans in delinquency, and this is only rising higher as prices continueto skyrocket. the delinquency rate is up fifty percent in the last 10 years. in the thirdquarter of 2014 the three-year default rate was almost 14%. over the last twenty years tuition has risenone hundred and twenty-eight percent for public four-year schools and sixty-nine percent forprivate nonprofit four-year schools. in this same period, government aid to undergraduatecollege students, including grants and loans, has tripled, or increased roughly 248%.
why did the price tag for attending collegerise during the biggest technology boom of countless innovations that could improve theeducation system? this may sound counter-intuitive, but governmentpolicies enacted to help students afford college, have a side effect of raising the cost ofattending college. in the 2010 to 11 school year, 51% of allgrant aid came from the federal government. ten years earlier, only 34% was federal aid. students took out $120 billion in educationloans in 2012, up from $53 billion in 2001. over 90 percent of these loans were governmentbacked. new technologies have made it unfathomablyeasier to learn in today's world compared
to twenty years ago, yet the cost of a collegedegree still skyrocketed. in their 2015 requested budget, the departmentof education asked for 69 billion dollars, an increase of 5% over the 2013 budget justtwo years ago. of this, 38% is targeted for pell grants and student aid. that's an increaseof 5.4% in pell grants in just 2 years! private colleges raise their tuition 65 centsfor every dollar increase in federal subsidized loans and 55 cents for pell grants given tolow-income students. rising tuition costs from increased governmentintervention kick-started in 1978 under jimmy carter, when the middle income student assistanceact was passed. this expanded the basic educational opportunity grant eligibility and raised theguaranteed student loan program income ceiling
to make loans available to more than justlow-income students. this bill helped drive up college enrollmentrates from 25% to it's peak of 44% in 2010. over 1.8 million bachelor's degrees were awardedto the class of 2015. with 3 out of every 4 seniors graduating 4-year colleges havingstudent loan debt. that's nearly one and a half million new debtors each year. of the 1.36 trillion in student debt nationwide,almost 1.2 trillion is government loans! a lot of the increased cost of college isgoing to fund expansion projects and newly hired administrators. in 2014 colleges and universities commencedconstruction on $11.4 billion worth of projects,
a 13% increase from the previous year. it�sthe largest dollar value of construction starts since 2008. you can�t go to a big stateuniversity and not see construction. making it even worse is the fact that these schoolsare taking on debt to pay for the construction. rather than take advantage of increasing productivitydue to technology, since 1987 federal figures show the number of administrators and professionalemployees has more than doubled; vastly outpacing the growth of students or faculty. from 1987to 2012, universities and colleges collectively added over 517 thousand administrators andprofessional employees. overall spending by higher education institutionstripled from 1975 to 2005 to over $325 billion a year.in a 2010 study it was found that from 1993
to 2007, spending on administration rose almosttwice as fast as funding for research and teaching at 198 leading u.s. universities. it's no wonder that even when adjusted forinflation, tuition and fees have doubled since 1987. purdue university pays their acting provost313 thousand a year. from 2002 to 2012 the growth rate of administration employees atpurdue grew by 8 times the rate of tenured faculty. in 2013, 42 private institution presidentshad an over 1 million dollar salary. the average salary is 400 thousand dollars. a full timeprofessor at harvard only makes half of that
in a year. shirley jackson, the presidentat polytechnic institute in new york made over $7 million, as well as being given alarge mansion, first class air travel, and a chauffeured luxury car to transport heraround the campus. on average a private college president's salary accounts for an appallinghalf a percent of the entire institution's budget. the university of california's total payrollof 11.2 billion dollars grew to 11 .7 billion from 2012 to 13, an increase of over 4 percent.this is nearly half of it's operating budget of 24.1 billion dollars. most of the payrollgoes to the over 135 thousand staff members compared to the 19 thousand actual professors.that means there's 6.6 staff members for every
teacher on campus. additionally, because theu.c. system pledges 100% of tuition to maintain its bond rating, it's assuring bond financiersthat it will further raise tuition prices to keep borrowing more. higher tuition meansthe u.c. system can borrow more money to finance lucrative construction projects. uc managersalso engaged in the risky derivative market with interest rate swaps. at this point weshould be asking why is public higher education helping fund wall street bankers? too many young adults are being suckered intothis money hungry system of antiquated methods of teaching and overpaid administrators benefitingoff the mass deception that everyone needs to go to college to have any success in life.today, you almost see the opposite.
today only 40 percent of full-time studentsactually earn a degree within four years. less than 60% get their supposed four-yeardegree within six years! only 44% of grads expect to make more than30 thousand their first year out of college. adding insult to injury, the jobs graduatesexpected to be there for them in today's economy simply aren't there. in 2010 only 62% of graduateshad jobs requiring a college degree, and a measly 27% had a job even relating to themajor they studied in college! in 2011 nearly 54% of college graduates under25 were out of work or underemployed. we just don�t see why a high school graduatewould jump into college. these days, young adults need to think harder about their futurewithout assuming college is the right step
for them. alternative solutions are poppingup rapidly. millennials are the first generation of freelancenatives. they're embracing freelancing in a way no other generation has in a long time.and now, they�re the majority of the workforce. with the internet of everything and onlineeducation abundant in all fields, unless you need a specific license mandated by the governmentto do business, we just don�t see why a high school graduate would jump into college.we're not against college under all circumstances, but at the very least, consider taking a yearoff before spending tens of thousands of dollars, or worse � borrowing money and getting intodebt. the repercussions of the student loan bubbleare already being felt. as we predicted in
the college loan bubble documentary of march2014, college attendance is dropping; falling over two percent in 2014 alone. this is aboutfour hundred thousand students deciding not to take the route of huge burdensome debt.attendance has now decreased four years in a row. since the spring 2011, colleges havelost over 1 million new students. to us, this is a step in the right direction...but itwill not fix the giant college loan bubble that still exists and is about to burst. to find out what you can do instead of becominga college debt slave, get our free report on 50 alternatives to college at crushthestreet.comslash college, you'll also get our 25 extra income ideas report.
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