Democrats help Colleges and Universities sell kids Useless Degrees with no Market Value

Posted by PITHOCRATES - December 29th, 2013

Week in Review

All you hear from Washington is that we need to spend more on education.  We need to help more kids afford a college education.  To help subsidize the high cost of education.  Though they never question why the cost of education is so high.  Never.  Tuition keeps going up.  And they keep saying we need to spend more on education.

More people than ever are going on to college.  Because it’s a lot of fun.  Drinking and partying.  The drugs.  The sex.  Kids love getting out from underneath their parent’s supervision.  And going to a party college.  Where they can have a good time.  All of the time.  Of course, taking tough majors could get in the way of that fun.  Like math and science majors.  The kind of majors businesses are hiring out of college.  But these majors are hard.  And do intrude on that fun.  So a lot of kids take easier majors.  They still pay a fortune for them.  But their universities and colleges gladly take their money knowing full well that their odds of getting a job with that major are slim (see Duke Grad Student Secretly Lived In a Van to Escape Loan Debt by Mandi Woodruff, Business Insider, posted 12/27/2013 on Yahoo! Finance).

Yahoo editors have selected this article as a favorite of 2013. It first ran on Yahoo Finance on June 10 and was one of the most popular stories of the year. The article details the extreme lengths Ken Ilgunas went to in order to pay back his big student debt bill.

By the time Ken Ilgunas was wrapping up his last year of undergraduate studies at the University of Buffalo in 2005, he had no idea what kind of debt hole he’d dug himself into.

He had majored in the least marketable fields of study possible — English and History — and had zero job prospects after getting turned down for no fewer than 25 paid internships.

“That was a wake-up call,” he told Business Insider. “I had this huge $32,000 student debt and at the time I was pushing carts at Home Depot, making $8 an hour. I was just getting kind of frantic.”

Back then, student loans had yet to become the front page news they are today. Ilgunas could have simply deferred his loans or declared forbearance. He also could have asked his parents (who were more than willing to help) for a leg up. He could have thrown up his hands and gone to grad school until the job market bounced back.

Instead, he moved to Alaska and spent two years paying back every dime. And when he enrolled at Duke University for graduate school later, he lived out of his van to be sure he wouldn’t have to take out loans again.

Ken’s story is a little different as he really wanted to be a writer.  And he took whatever job he could to repay his student loan.  And then earned his master’s without another student loan.  But there are so many kids who are enticed to take on great student loan debt to earn a degree that has little market value in a high-tech economy.  And our colleges and universities sell these degrees to these unsuspecting kids.  They get their money.  Allowing tenured professors and college administrators to live the good life.  While these kids are stuck paying off their debt with their $8/hour jobs that they could have gotten without that expensive college degree.  Or taxpayers end up paying for them.  With taxpayer-subsidies.  Or student loan bailouts.  Which may be coming if Democrats get their way.

Our colleges and universities are slinging these useless degrees for the money.  For higher education is a business.  And a profitable one.  The one type of business that the left doesn’t mind making a profit.  Even an obscene profit.

The Democrats help them with cheap student loans, subsidies and the promise of bailouts to keep that money flowing to them.  And in exchange they teach our kids how to be good Democrat voters.  Which they do.  As the vast majority of our young vote Democrat.  Even when they have to repay their student loans with their $8/hour jobs.  But that may change.  As more of them can’t find work with their expensive degrees they may dissuade their friends and younger siblings from making the same mistake.  Especially as they now have to deal with the high cost of the Affordable Care Act.  Which may be the tipping point for the young.  For as much as the Democrats say they are looking out for them their lives just don’t get better when Democrats win elections.

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Student Loan Debt is Rising while Household Incomes are Falling

Posted by PITHOCRATES - September 30th, 2012

Week in Review

Universities are doing well.  They rarely suffer during a recession.  Because one thing government does during a recession is encourage people to go back to college.  And get a new education.  So there is always money flowing into our houses of higher education.  But the people getting these degrees aren’t making out as well (see Number of U.S. households with student debt surges by Tiffany Hsu posted 9/28/2012 on the Los Angeles Times).

The share of American households with student debt has more than doubled in the last two decades, soaring to a record 19% in 2010 from 9% in 1989, according to a Pew Research Center analysis of government data…

In addition, overall household incomes continue their decade-long slide, according to the government. The median annual income slipped 1.5% last year to $50,054 compared with 2010. That’s 8.1% below the income level in 2007 and 8.9% less than the median in 1999.

More people are going to college.  Yet household incomes fell this last decade.  What can we conclude about this?  A couple of things.  A college education is not a guarantee to higher wages.  For it matters what that degree is in.  A degree in math or science will probably get you a high paying job.  A degree in philosophy or women’s studies is not likely to get you a high paying job.  If it can get you a job at all.  So a lot of universities are encouraging kids to go into debt to get a degree that will bring money into the university.  But it will probably not get them a job.

Another thing to take away from this is that even college students apparently want to earn a lot of money.  Despite the fact they typically vote for Democrats.  Who attack those who earn a lot of money.  So these newly degreed kids should not be surprised that their costly degrees are not bringing them higher earnings.  Because their political party makes it difficult for businesses to do well so they can hire new employees.  And provide high earnings and generous benefits.  Because high taxes and costly regulatory policies increases the cost of business.  Reducing what businesses can spend on employees.

If newly degreed kids out of college want high paying jobs (and want to more easily repay their student loans) they would be better off voting Republican.  Something to think about with the 2012 elections around the corner.  And kids going to college should consider getting a degree that has market value.  Even if these degrees are harder than degrees in philosophy or women’s studies.

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