Truth Behind Student Loans


The truth behind student loans:

I believe that college education today is just a scam victimizing college kids with the hope of a great job. Now before you bring the torches and pitchforks allow me to explain, I don’t think college is bad. However from Kindergarten we are raised to go to school, get good grades so we can get in a top university, and then get an awesome high paying job with benefits until we retire.

Sound great! Sign me up, but wait, they forgot to tell you that because of the 90/10 rule the college is required to raise tuition year after year. With tuition inflating around 4% per year the cost become astronomical!

According to The College Board®, the average 2014-2015 tuition increase was 3.7 percent at private colleges, and 2.9 percent at public universities. The ten-year historical rate of increase is approximately 5 percent. These figures are substantially higher than the general inflation rate.

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College is awesome for certain professions, however for most you can learn everything on the job, in fact more and more companies are looking for personal motivation and willingness. Don’t dismiss college, just think if it is worth having $50,000 to $100,000 or more in debt before you even apply for jobs.

Here are some interesting facts about the state of colleges, make sure to read the full list here.

In 1989, only 9 percent of all U.S. households were paying off student loan debt. Today, 19 percent of all U.S. households are.

Young households are being hit particularly hard by student loan debt. In America today, 40 percent of all households that are led by someone under the age of 35 are paying off student loan debt. Back in 1989, that figure was below 20 percent.

According to the Federal Reserve, the total amount of student loan debt has increased by a whopping 275 percent since 2003.

Today, 34.9 percent of all student loan borrowers under the age of 30 are at least 90 days behind on their student loan payments.

This one hit me hard, this is exactly the way I felt after graduating… And my wife said the exact same thing after graduating in finance from a big 10 school..

At most U.S. colleges and universities, the quality of the education that you will receive is very poor. Just check out some numbers about the quality of college education in the United States from an article that appeared in USA Today….

-”After two years in college, 45% of students showed no significant gains in learning; after four years, 36% showed little change.”

-”Students also spent 50% less time studying compared with students a few decades ago”

-”35% of students report spending five or fewer hours per week studying alone.”

-”50% said they never took a class in a typical semester where they wrote more than 20 pages”

-”32% never took a course in a typical semester where they read more than 40 pages per week.”

There is no denying that we have some issues to work out here, and I think it’s because most student loans now are from the government. Basically they will approve anyone for any amount so colleges can charge more because they know they will get accepted and pay for it, the question is:

Where and how does this all end?

Please leave your thoughts below! I’m interested to hear your stories.

About the author


I'm here to help change the way people are taught about finances. I have created a place where I look for the best information possible that I believe will significantly benefit my readers. I want this to be beneficial for everyone! Lets change the world together!

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