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Economics Education

“I already got a ‘small loan’ of a million dollars…in STUDENT LOANS.”

Student loans are becoming a major issue for the economy, and Donald Trump has inherited a country with an expansive and rapidly expanding student loan problem. In a capitalistic society, debt becomes a mountain of monetary problems. The public sector has fallen into an abysmal state – one that has been forced into chains by private sector funding and corporate shilling. The push for a bipartisan state with two corporatist parties, each slowly driving themselves away from the common man’s interest, has started a new era of politics – one away from a neo-liberal society that has shunned the masses for far too long.

Here’s the statistical student loan situation that the United States has sunk into.

Student Loan Debt

Copyright Mother Jones 2013.

Student loan debt has grown incredibly out of proportion. More than one-quarter of all student loan borrowers, as of July 2016, have debt from a degree that they never completed. The mere thought of paying for something you never received is outstanding in our modern world.

Students are encouraged to get degrees so that they can find careers that pay more than the typical job. Think of it this way: put yourself 30,000 dollars into debt so that you can get a job that allows you to pay your 30,000 dollars of debt! Now, of course, if you’ve found a job that pays more of a living, this isn’t too difficult with reasonable payments over a long…very long timeline.

But what about students that complete their educational programs but fail to find a job due to a failing economy? If a famous American Recession blows in, will a student with a brand new degree be able to find a job literally worth paying for?

The unemployment rate for four-year college graduates is currently 2.6 percent, and the typical household headed by a college graduate earns $58,000 more per year more than the typical household headed by a high school graduate. – Why Students With Smallest Debts Have the Larger Problem by Susan Dynarski, August 31st, 2015

Ever since Dwight D. Eisenhower’s National Defense in 1958, the American education board and federal government has pushed students to go into careers dedicated to STEM. Science, Technology, Education, and Mathematics have dominated the funding since the Space Race and eternal fear of communism took over the rationality of Americans. What’s funny, however, is the average doctor finds his or herself in around $183,000 of student debt (with an average balance of $24,000 coming from undergraduate studies) – the largest amount of any other career. The Association of American Medical Colleges reported on this statistic in 2015.

Yes, yes! Join the STEM nation and dedicate yourself to a systematic career that we’ve labelled as more important and more rewarding! Take that massive debt and pray to whatever God you think exists that every other kid in the nation hasn’t taken the same advice. The over-hyped nature of STEM careers hasn’t prepared an entire generation of students on how to handle massive and crippling debt.

Now, it’s not just STEM careers bringing in major debt to American students. The students that can’t finish school for any reason – maybe medical problems, an inability to keep up with cash, bad grades, or family troubles – still have to pay off substantial amounts of debt after they’ve dropped out. Without a “high paying” career rooted in a college education, these people have difficulties keeping up with payments.

It’s also shameful that American loan hounds don’t drop debt payments for students that didn’t finish their degrees. If you don’t have a house, you don’t pay house payments. If you don’t have a pet, you don’t pay for veterinarian fees. If you don’t have a car, you don’t pay for auto insurance. If you don’t have a college degree? You might still find yourself paying off student loan payments without assistance.

I understand where it comes from. If you have a house and stop paying the fees, the house gets taken away from you. If you have a pet and stop paying the vet, your pet dies. If you have a car and stop paying the insurance, you’ll be screwed when you get in a wreck. If you take out money for an education and don’t pay for the education you received – if any – well, there’s nothing that can be taken away from you except for your living wages.

We’re seeing news article after news article talk about how millennials are staying at their parents’ homes longer than any other generation. Maybe you can see why after looking at the crippling debt that American students inherit from a system that overtly doesn’t care about individual futures.

It’s disgusting, and that’s where the topic at hand comes from.

While Bernie Sanders preached a tax-based method of making college educations relatively free for students across the nation and Hillary Clinton was talking about making tuition lower for low-income students (as she preached about income inequality while wearing a $12,000 coat), Donald Trump proposed a plan of his own. On October 13th, 2016, Trump “proposed an income-based repayment plan that allows borrowers to cap their monthly student loan payments based on their income and then have their student loans forgiven after a certain period of time.” It’s not good idea, but it’s a rather intriguing one when compared to how his fellow Republicans think of it.

Trump’s proposal basically calls for student loan borrowers to pay around 12.5 percent of their annual income towards the loan. A substantial increase in their per-year payments, debtors would have a chance to have their loans completely forgiven (even if not fully payed off) after 15 years. The current system, REPAYE, advises students to pay 10% of their annual income and starts forgiving loans after 20 (undergraduate) or 25 (graduate) years.

Trump’s plan is flawed. It may seem better to have the forgiveness period lowered by 5-10 years, but Trump’s concept of fixing the debt situation makes borrowers pay more per year to make up for it. Low-income borrowers – students that didn’t finish their degree or students that are sitting in the unemployment line – are likely to benefit overall, but the statistics make it even harder for them to reach monthly payments on time.

Trump is the perfect example of an out-of-touch, elitist pig. He doesn’t really think of how education benefits society because the modern conservative nature just wants factory workers that just fall in line at command. The budget for liberal arts and educational programs that can be seen as “subordinate academia” seems to get lower and lower in favor of unnecessary military budgets and corporate profits.

I’m sorry, but the guy who said this:

…has no right to come up with a payment plan for the average student in debt.

million-dollar-student-loans

ABOUT THE AUTHOR

I’m a writer and historian. Simple enough, right? I enjoy philosophy, sociology, social psychology, politics, basic programming, statistics, and old books. Unlike the stereotypical leftist, I do not necessarily censor myself. I apologize in advance if you find yourself offended by something I’ve said; but I do enjoy hearing criticism and having debates.

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Joseph Kaminski
I’m a writer and historian. Simple enough, right? I enjoy philosophy, sociology, social psychology, politics, basic programming, statistics, and old books.

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