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College Students: You Are Exploited Debt-Serfs

Students and parents, wake up: your only salvation lies in political engagement and action.

Of all the exploitative systems in the U.S., none is more rapacious than the Education Cartel. Like the proverbial frog that is unaware that it's being boiled because the water temperature rises so gradually, college students and their parents are unable to recall what higher education was like before students were herded into debt-serfdom.

Apologists for the Education Cartel like to blame Corporate America or the banks, but the reality is that the Federal and State governments and the employees of the Cartel are willing partners in the exploitation and fraud. How did we get to the boiling-water point where students are expected to take on $100,000 or more in debt to attend college – even a mediocre one?

Answer: immensely profitable Government-backed loans. If the Central State wasn't partnered with the Education Cartel, today's debt-serfdom would be impossible.

http://www.oftwominds.com/blogapril11/students-exploited4-11...

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Michael Nystrom's picture

Bump

Thanks bobby.

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As some one at Ron Paul Forums said

I think it's social stratification. Gotta keep those smart poor people's kids out of the competition with our brats.

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modern sharecropping

I think you are right since ed loan debt can't be written off in a bankruptcy so there is no getting away from them. Otherwise I would say that mortgage debt is the leading cause of what I call "modern sharecropping". It is probably only a matter of time before they make it so mortgage debt can't be wiped in a bankruptcy.

If there wasn't the creation of these huge loans for real estate the prices would be within the realm of what typical buyers could come up with in cash. I believe real estate was overinflated long before this recent bubble because mortgage practices which loan money on fractional reserve standards already widened the pool of money available to buyers who bid up property well beyond realistic levels considering income and savings levels. 30 years is a long time to pay off the lender.

I think the student loan mess clearly shows how this cycle is created and perpetuated. Its easy to see in the student loan situation how loose money bids up the price of education as institutions spend more frivolously, raise rates absurdly high, practice inefficient methods, and practice used car salesman approaches to lure an endless stream of victims to attend an institution they can't afford and to get degrees that don't teach them job skills. Additionally, the idea that everyone must be college educated has created a glut of dummies with papers that devalues the paper held by those best suited to intellectual pursuits while decreasing the ranks of those with valuable vocational skills that actually produce goods. Further, it keeps people out of the work force and productivity well into their 30s - its as if we raised the age of adolescence and adulthood another 10 + years. Most come out of college, with few exceptions like science and engineering, with fluffy degrees and they still did not gain knowledge or skills from school to perform a specific job.

It seems like an apprenticeship style system would be more practical if we really want highly skilled and specialized people and industries.