How student debt will cripple the American dream. | Dusty Wunderlich | TEDxUniversityofNevada
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- Опубліковано 10 лип 2024
- Entrepreneur Dusty Wunderlich exposes the catastrophic consequences of the student loan crisis using simple economics and explains how an oversupply of highly educated Americans is flooding the market and crushing student borrowers' ability to thrive. Dusty proposes solutions for a more sustainable economic future, and outlines a new way of decision making for parents, students, universities, and employers.
Dusty Wunderlich is founder and CEO of Bristlecone Holdings, a fintech startup financing under-served consumers in distinct markets. Dusty is a passionate economist determined to foster a healthier economy through innovation and civic engagement. He challenges the status quo through business, community activism and politics. Prior to Bristlecone Holdings, he founded Optimum Strategy Group, an institutional advisory firm and served as a Principal and Advisor at DCA Capital Partners,a leading strategic advisory firm. He recognizes frustration in a marketplace hungry for innovation and is devoted to making effective change. Dusty’s broad worldview, collaborative mindset and ability to overcome drives his political activism in his home state of Nevada. Dusty builds a better business environment everywhere he goes. Follow @DustyWunderlich on twitter.
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at ted.com/tedx
i dont even have a lot of debt, i just watch these videos to remind myself that life is horrible
fortgalahad yep😀
Yep, but remember Jesus does not care how much money you made or how many letters are after your name. I learned this from Life Changers Church (Chicago) God Bless You
@@ronfazer2423 i don't know how to tell you this, so il just go ahead and puke it out:
You've been lied to, jesus was very aware of economics, to the point were he declared that no one should ever : turn my fathers house into a house of merchandise.
Modern american churces = profit machines.
Hence modern churces in america = false religion.
Lol
ron fazer There is no Jesus
Employers also demand an expensive college degree for everything, and yet they only want to pay 11 dollars an hour.
That's the problem.
Employers are less focused on what school is written on a candidates degree and much more concerned with what skills, experience, and knowledge that candidate that will help them succeed at the job. Internships, real world job experience, attitude, and networking are far more important than what major a candidate has.
Agreed
When I showed up at orientation for my undergraduate degree, the professor up front said if we came there to learn a career, we had the wrong attitude. We were really there to "broaden our horizons". This is a wealthy person's idea of college: to learn the Classics so one may be witty at afternoon tea. I was a middle class kid from working, middle class parents. Learning to be employable was basically a matter of survival.
All these schools encouraging every student to go to college is very wrong. Not every student wants a job that requires a college education. You don't need an MBA to run a business. You can get a free education in a library to get a jump start on that. Then you need life experience. Education can never replace life experience. We also need more 1 yr schools and more employers only requiring a 1 yr school. All these employers require big degrees and then don't want to reimburse for them. Then their staff can't even qualify for a mortgage.
And for the record I went to a 1 yr school and have a good job with a good return on my investment. Most degrees can't boast a 200% return on investment. Most do good to get 50% - 100%.
Yeah, until libraries come to be seen as a cost burden to society as well. With all due respect, your distinction between education and "life experience" are signs of the times we live in. In modern times education is seen as a means to an end-not an end in itself. When you consider the F-35 joint strike fighter's 1.5 trillion dollar price tag, a worthless jet that can't achieve any of the tasks it was set out to achieve (google Pierre Sprey), and that that price tag is equal to that of all the outstanding student debt, higher education shouldn't seem like such a cost burden. And that's before even considering solutions to bring the grossly over-inflated costs of education down. Why should it cost so much for Lib Art majors to get together with a few books and discuss some ideas? "Education is not preparation for life; education is life itself." -John Dewy
Our government is inflated in every way just like the cost of education.
Noah Beach the answer is more democracy, not less.
anythgofnthg The answer is Jesus.
This guy is on point. Finally, someone suggest applicable solutions instead of just shouting at the wind.
Claudia Duran Wind mills get all the wind 🤑.
Well he is an enterpreneur so he should know
the advantages of hiring people with such a huge debt.
They cannot get rid of it and have to pay
horrendous interest rates. So:
1. they have to work no matter what, irrespective of the working conditions
2. so they have to take any job which is being available, irrespective of
their degree
3. any form of protest is forbidden as they could be replaced tommorow
the companies more or less own these people, these are the ideal employees think about it. It is much easier to control a person with such a debt in comparison with someone who has no debt at all.
and with 1 Trillion dollar of total debt, this is a perfect result from people who planned the whole thing. Maybe he should talk more about the economic advantages of the student debt.
I agree with you it's the next best thing aside from Automation as it creates the perfect employee one that due to the heavy burden of debt on their shoulders doesn't complain as much. Companies love this as it creates a pool of people willing to take up anything and not negotiate hence having employee leverage power stripped away.
💯
No, not true. People with more financial pressures are most likely to steal and commit financial crimes because they feel more pressure to need the money to pay their bills.
You forget that people with debt and that are struggling to get by on average have a 14 IQ reduction in what they'd normally have. So you have employees that are less rational.
A better way; I have helped several grandchildren by buying them a mild fixer upper when they start College. They rent it at a fixed rate, usually enough to cover the mortgage , When they graduate, we sell the house and split the profit 50/50. Usually enough to pay their student loans.
Dave McKee that’s nice of you, but what percentage of people are able to do this?
I work in IT that doesn't even require college degree making $75,000 a year.
Solid path, i remember being amazed by a pos packard-bell as a 4 year old the way kids are today with tablets&smartphones.. it's here to stay for a loooong time lol, might as well make something out of it
Thank you for suggesting the cost of education should be relative to the earning potential of the degree. I never understood why my art classes were the same price as higher math classes where those students were much more likely to get a job immediately out of college with a good starting salary. The lender should consider the paying potential of the degree they are lending towards. They don't give a shit though because now they have a whole generation of debt slaves who will owe them money forever because they refuse to pardon student debt. Why would they?? Young debtors are as valuable to them as young smokers to the tobacco industry.
Not all degrees are taken due to earning potential. In the event they are, the degree that people receive may not be reflective of their position. I have a co-worker who got his undergrad in philosophy and german. Another received her PhD in law. I received mine in business and we are all IT Analysts. Your path takes you to your position, not your degree.
Shortsin Portugal Take is a step further. If this guys suggestions were implimented, there would be no art programs. They would disappear altogether.
just because u have a degree in a field does not mean u will work in said field.
many people wont work on what they studied, sometimes a bit diferent, sometimes totally unrealated fields.
Well really your art classes should cost more than a math class as teaching math doesnt involve a lot of expensive supplies but teaching art does. And thus art classes should die off. They shouldn't exist, if anything they should be looked at as a luxurious product.
@@gtarman8d What was your roadmap to becoming an IT Analyst? Certs? I can't get a straight answer online.
"if you keep doing what others tell you do, you will get screwed eventually" my favorite anonymous quote that fits this situation perfectly.
Although I agree with a lot of the points this guy makes, ultimately the person most responsible for making sure you have a good skill set is... you. I think a lot of students don't grasp how competitive the world has become, and how quickly the forces of globalization and automation are driving down labor prices. I do think a large part of the problem is that simply too many people are going to college, and a lot of people who are going to college aren't getting good degrees or learning valuable skills while in college.
Employers can afford to be picky right now, so I think more young people need to become employers. If we want more jobs, we need to make them. Its not up to some one else, but ourselves. if we create new businesses, especially ones that require little to no capital, than you can free yourself from the rat race. We have the internet and countless tools that make a low budget business possible. The more employers that are competing for employees, the better things get for people looking for jobs. It also drives down prices and/or improves the quality of serves. A business friendly government that doesn't reward companies for offshoring jobs would be helpful, but even with the bureaucracy, businesses can and must thrive.
Makes sense, just take out a small business loan to get started...
In high school, especially during senior year, all you hear about is going on to college. Yet they don't talk about how to avoid accumulating thousands of dollars in Student Loans. Sometimes I believe the college system is a scam. A person will finish college and end up with so much money in debt, yet can't even get a Job right away with their degree.
If I knew then what I know now. I wouldn't go to college. You can learn trades by reading a book and getting an apprenticeship.
I predict 90% of colleges will go out of business by 2050 and almost all college loans will not be paid. Sad fact.
Your predictions will be wrong as long as businesses still require a college degree for most positions.
@@directorbeau hahahahah what are we in 1960s jeez, get with the damn times. He is right
One of the best Ted talks I have watched! Its crazy however that we have gotten to a point where this needs to be said.
I came from a blue collar background, one of the few on my fmaily who went to college. I still had that mindset of "its the degree that gets you the job".
I left college early because I realized I was out of my depth, not just financially but understanding the world of the elite. College is not mean for average people, college is meant for upper class people who can afford to not work for most of 4 years, get a degree in whatever they fancy and then get a job because the knew someone or through their family. It matters not that you worked full time while getting your business or accounting degree. What does matter when graduating from University, is the prestige of the University, the prestige of your connections and possibly the prestige of your family. Yes, there are people with liberal arts degrees getting high paying jobs, that is thanks to nepotism. But, average people are not suppose to know that, otherwise they might stop putting themselves into debt.
As a US college student I am so angry/frustrated about the sheer LACK of legitimate salaried positions and the ridiculous leverage employers have over college students, this has got to END. I didn't go through all this hard work, effort only to be underemployed and devalued by employers turned vultures by opportunity. My degree is in an indispensable business field, I didn't make a mistake.
+Dusty Wunderlich 2nd overlooked US jobs aspect is in 2016, you need to KNOW 3+ solid connections in a big company to EVER land an *ENTRY LEVEL* position there. *Job fairs DO NOT equal jobs*, they'll give you a few business cards, tell you to apply online, and you never hear anything from them again. Even professionally emailing from business cards tossed out yields very few responses. Taking down names on an ipad etc is a farce of 0 results. Even when your resume and interview skills are solid its near impossible, and experts are always quick to blame the victim ignoring any other problems leading to the current 2016 situation.
grow up & take some responsibility. if you think you are smart, go start up your own business. dont say you dont have capital cause that's BS. poor 3rd world countries succeed on micro loans.
Ski Fall poor 3rd world countries dont have hundreds of laws that take fees & huge tax cuts. Think about how much the average U.S. citicen makes & aside from rent itself how much they pay in car insurence home insurence health insurence utility bill phone bill food. With a business you also need insurences it's not easy for most americans to start a business its easier for 3rd world country citizens to start one if you visit mexico 50% of mexicans live from selling some kind of product and they handle their own markets theirs little government regulations involved.
I don't have a college degree but, I have six figure income and no debt with multiple retirement accounts.
can you marry me..i am an artist
@@barbaraleavitt5324 depends how you look like
Both parents dead by my eleventh year, graduated from Miss. State debt free at 24, put my daughter through Chapel Hill with no debt. One lesson I learned is choice = consequence. Now I am 79 years old living a full life debt free.
"Colleges and Universities should take responsibility for the product and services they sell." Awesome line. "Educational Shaming" another awesome point.
You definitely gave me some food for thought. Well done!
I am so glad I didn't go to college. I always had a pit in my stomach every time my family members asked me if I had any plans for college.
At the end of the day the system itself is rigged. However, it's hard to change the system because many of us are tied to it. We have families, bills, and so forth. Catherine Austin Fitts covers this very well. Ultimately, the problem is bigger than supply and demand (many of the problems we face come on two legs). We have cultural, moral, and ethical issues that have resulted in past/current generations exploiting future generations (and vice versa). In today's world you have to be a DIY person. You have to take ownership of your education, food, and so forth. Education goes well beyond getting a job. You have to take back your life by divesting in the crap that companies/government market to you on a daily basis (e.g. education). Again, this is hard to do for some because it means you have to downsize (your ego in particular). Downsizing doesn't not mean you become a hobo. It means you simply quit supporting things and people that don't support you. This requires a radical change in thought and behavior. I hope the tone of this post does not offend anyone. I've worked in education (i.e. for profit and not for profit) for 10 years and it's something I'm passionate about. We should focus more on instilling confidence, self-worth, pride, love, and empathy in our kids so they can't be exploited/manipulated so easily.
Well said. You made a great point about downsizing the ego and living on less. I feel like sometimes we care more about the label of the school than the education itself. We need to be less arrogant and more practical.
2016?? sheesh this still applies today
Occupation: Postdoctoral Fellow in Cancer Research
Salary: $47,800 per year
May 2016 Balance: $51,000
October 2019 Balance: $9,720
Earliest Zero Balance Date: July 1, 2020
So here I am with my Masters in 12th Century Norwegian Literature and I'm repeating over and over "Did 'ya wanna supersize that"? Life isn't fair!
With most information digitized, the question comes.
Why do we still need college when IT makes it obsolete?
Are we just there for the paper to qualify you?
Id rather a person with a track record than a qualification.
True - most education is your own resposible and a kind off factory.
If you took away the diploma 99% would not go there.
Myrslokstok
people would rather party than be educated.
+Alex Ruan I switched my degree to computer science. I'm considered more as a tech worker than an actual geek with a passion for it. I still see the benefit though because I'm utilizing it with my work experience.
Sarrah Conley
Nothing wrong with going to school to LEARN.
Its just i have a problem when people say they're going to school to get a job.
Somewhere along the line, the generations misconstrued the ideology of higher education.
Academia still spreads the apparition that without their standardized education, you're likely to fail.
It is not to disprove the benefits that academia provides like networking opportunities you would otherwise have to create on your own.
Yes and I agree lol
don't go to college instead have an aprenticeship or go to a trade school college dosen't garrantee you a job anymore
Elevator Technicians on average make over 80k a year. When you take into account pensions, firefighters easily make that range or more as well. Heavy machinery technicians, such as those who can repair Caterpillars, can make 6 figures. There are many esoteric technology positions where you can make great money, such as network (e.x. Cisco) certifications and make over 90k w/o a college degree. There are esoteric programming languages like SAS where you can make 6 figures easily contract to contract.
The problem with all these positions is that they are all hard to think of or get into.
Your spelling is atrocious, allow me to correct you:
Don't go to college. Instead, have an apprenticeship or go to a trade school. College doesn't guarantee you a job anymore.*
Public school taught me how spell and use punctuation. That was free, take advantage of it.
College degrees are still required for certain jobs, if nobody went to college we wouldn’t have any teachers or doctors
Or created your own job and have people work for you!?
G Embry lmaoo
The government should force colleges to buy unemployment insurance for their students, based on degree. This will introduce risk for the colleges when their degrees don't perform. Also, risk based pricing is an amazing idea. Why does everything cost the same??
It is a shame that a high percentage of college students believe it is the credential itself that qualifies you for a great job. In fact, it is the ability to think on your feet, analyze and present data, research ideas, work effectively in teams, communicate clearly both verbally or in writing, and the proven ability to succeed in a variety of roles.
Having taught as an adjunct at a state college, I noticed a number of recent high school grads tended to blow off classes. Many of them never did the reading, wrote very poorly on essays, and could barely function on the internet. I asked students why they were in college, the nearly universal response: to get a good job.....not to learn, not to improve my skills, not to broaden my understanding of the world past, present or future, and not to figure out my own best path.
So, not everyone should be in college, particularly directly from high school. Young people should have a universal one year gap before college and should work, volunteer, intern, or travel, before making drastic and costly decisions about their futures.
Couldnt agree more, I have a 14 year old that I am encouraging NOT to go to College. I regret wasting so many years myself in school, me and millions could have accomplished sooo much more by forgoing 4 years of "class".... You can learn pretty much anything today on youtube for FREE! Only degrees semi-worth the cost is Doctors & engineers, but not even, I live close to Lockheed Martin and I have met countless unemployed "engineers" that say the competition is so stiff that you wont make 6 figures until after 15-20yrs. I know handymen that make 6 figures, no degree required.
Most people don't want to go to college, but feel they must because the wages for normal jobs have become too low to support a decent way of life. If normal jobs paid enough to support a family people wouldn't enroll as much. California had a functionally free college system for 30 years and we didn't have the flood of graduates until the late 90s.
By normal jobs, do you mean jobs that require a degree or jobs that don't require a degree?
Beware of recruiting employers too. They promise you a good competitive salary, excellent training and support and then after a few months they lay you off from your job and you're back into the filing unemployment/seeking employment pool and also back to where you began with your student loan debts. This is what I would do. Leave your country, seek employment overseas and take your knowledge and skills with you. Next thing the USA will find right after the Student Loan Debt Crisis is the Brain Drain Crisis. This goes to show how well we do as a nation. My advantage? I speak more than one language.
Some very, very good points. I don't even know where to start. I learned a long time ago, the hard way, that I've never earned a nickel because of what I learned in college. I have always felt that I should be able to get my money back. Instead, I still had to pay off my student loans. Oh, and supply creating demand is a great point; it is a weed-out process. That's all it is.
It took three court cases to get my brother Social security disability. When he almost died in the hospital they courts accepted his claim. Then we sent in the loan forgiveness forms for total disability he was continually rejected. He died with student debt. Even the standards of "undue hardship" and "total and permanent disability" are completely meaningless in regards to this current system.
The question I have: who makes money if loans remain unpaid? Likely the loan collectors who have incentive to keep the loan on the books.
I wonder how many people die and the Loans are still on the books.
This is SOOOO right on!!!!! Great video.
I think employers are actually better off training their employees in-house. The most important character traits that an employee can have are behavioral traits like responsibility, ability to learn, and team skills. If you don't limit your search to people who have those AND a degree, you broaden the pool a lot.
My second job I ever had was a small business, and the owner would often invest in the employees to help get them certified to advance in the company. It was a win-win for the employee and employer.
As for myself I just did ok in school and in college. I did really apply myself after graduating and went into the construction trade. I'm definitely not the smartest guy out there but I believe that motivation a good work ethic and customer service go far in this world. I currently run my own business and make anywhere from 10000 to 15000 a month. If you really apply yourself it can be done and you really need the right people around you to make it happen.
I think there's more benefit to higher education than just getting a job. Becoming a better person, meeting like minded folk, learning advanced topics, being able to discuss said topics and having access to resources are all benefits of going to university. That said I wouldn't go into debt for it. Get an entry level job after highschool save up a lot of money, think about what you really want to do with your life , then if you still want to go to uni you'll be able to pay upfront. We have about 45 years of working life sometimes more, I don't get the rush to go to uni straight out of highschool.
Colleges don't make you a better person, a like-minded folk or learn relevant advanced topics. Also, what does uni mean?
Ben University, bonehead
I myself have student debt and I didn't even want to go to college. A situation forced my hand into the mess. I knew what would happen and I knew I would regret it but do to older generations of my family, I got stuck with the debt
Brilliant. Why is it nearly 2020 and still nothing has changed.
Thank you for this
2:05 amen, same thing can be said about the housing market
Here is on great solution..require all universities to guarantee the student a job in their profession within a year after graduating otherwise provide more schooling for free or a full refund..This will hold the higher learning institutions accountable and in check.
I recommend joining the military or at least do one enlistment so you can qualify 100% for the Post 9/11 GI Bill. I have a BS Degree and working on my second with no student loan debt. Most of it was paid for with tuition assistance, pell grant, and GI Bill. Also, some colleges and universities will give veterans credit for military training. I think the military and trade school is a better alternative.
this guy is awesome. thx for the vid!
So much truth and integrity in his words
About the firefighter comment in the beginning: Most large suburbs and even in some cities require you to not just be a firefighter but also be an Emt-basic or Paramedic. Essentially doing two jobs with 1 person. I would say that is a significant difference in skill set compared to former days when you went through a fire academy, and had a 60k or more salary lined up afterwards. Also firefighters are exposed to different hazards now than in former days, like terrorism and new construction synthetic materials that burn hotter and faster than the old stuff. Today's firefighter needs to be educated on these things. Firefighter is just one example of a job changing or evolving. School is never ending now for most careers. However, this guy makes some great points. Universities are like a business and they don't care if the student succeeds or not. The loans are back by the federal government. How much money can we get out of each student, that's the bottom line.
Firefighters are exposed to terrorism? Explain how that makes sense.
Ben 911?
It's not only the initial debt immediately after graduation to consider. For those that default the collection fees can nearly double the cost.
You're also under the threat if having 25% of your "disposable" wages garnished in the U.S.
Best bet, if you can't pay, just do $13 per month in a 40K+ debt to repair your credit.
So here's my thing, I dont want loan forgiveness (bailout) or any income based repayment. I would like to pay back what I took out plus a little bit on top. I understand that these business have to make money. But taking out $44,000 bucks and then having it equal to $140,000+ after you get done making the minimum payments of 500+ 186 months. The government lets these greedy businesses get away with it and the American people are the ones who suffer. I'll probably will die with these loans under my name. "Well guy you should have saved up money and read the fine print". Well its kinda tough to do when you're pressured by family and friends of the family (along with society) to get a college degree to make something of yourself.
I got student loans, I paid them back in 10 years, I was able to get a great job, and improve my life afterwards. Without my student loans i wouldn’t have made it.
Finally, the truth has been spoken. One's educational background is not the only barometer of predicting success.
True....white male privilege and prejudice still exist.
Americans should travel abroad (India) to get their degrees. Its so much cheaper that way and u can see a new country. My fees while doing my Engineering degree per year was only 100$ for tuition and 100$ for hostel. I graduated and worked for the best Engineering companies around the world including India, Japan, Europe and USA. I feel bad for my American brothers and sisters who are brainwashed into thinking that only American institutes can impart education. I always get surprised to hear that American go to college to experience college life. I went to college to get my degree and get out and make money.
lol. thats why indians have highest median household income.. (not being mean but indians are hard workers)
The college experience is disappointing to the ones that have a difficult times paying for the degree or have not started a career using the degree or degrees that was obtained. College education truly does provide a better quality of life. However, when it comes to paying for the education we have to have an example to go by. If a student loan company or any company is requesting a certain amount per month then whoever sends the bill or calls to request payment need to be able to pay the amount or have paid their own student loans. How can I do if they haven't? Some student loan companies don't even require some people to make payments if their salary is below a certain level. That tells me that they know some employers are not going to pay enough to allow for people to repay their student debts and make a living. However, the company does require those people to fill out paper work once a year to verify salary made. The loans come from different sources. The question is with a family of six and student loans that total up to about $200,000 between my husband and I how do we pay for it all. We are thankful for the college experience. I personally feel like college was very beneficial to me and I would prefer to cover the costs and still be able to make make a living. Some people are forgiven after 10 years of service. This means free labor and whatever happens to people while their in debt (torture/misfortune spoken into your life/ harassment about payments/spontaneous accumulation of unwanted items, and items destroyed, no peace of mind, and whatever else has been invoked upon you for lack of adequate payments... and not just any debt but a debt that lingers and little can be done about it. When their is a debt that has not been paid fast enough then another one tends to be created before the other debt is paid and if the other debt is not paid in a timely fashion then another one is created and so forth. This is called paying double/triple the amount that was originally due. I have made mistakes in life and choices based on circumstances/encouragement/environment. However, mistakes made by one person allows the people that feel like you made a mistake to see the mistakes that they made themselves. Either turn the situation around for the better or continue the condemnation by simply saying you shouldn't have done that and give that person as well as yourself no way out of the situation. If the person in charge of a company had to wait ten years to be forgiven for debts would he/she come up with a better plan for people in that situation? When it comes to student loans or any loan we all have learned our lessons and then some for this such thing didn't just happened to certain college students for no reason. There was a cause because some people did not get caught up in such debts and still graduated from college. Personally, my former mentality got me in this predicament. Now, I am more thankful, understanding, loving, considerate, conservative, and hospitable. If such events like student loan debt had not happened to me in addition with other things things that has happened to me or around me I could not say that I'm a better person today and other people I associate with have seen this for themselves too. So what I'm simply saying is....thanks!
The guys right. The market needs two million grads a year, however, with student loans, 8 million graduate from college every year. That leaves 6 million without a job, and 50-100k in loan debts. This is what happened to me and many of my friends. I now drive a truck 70 hours a week to make ends meet.
Great presentation! Unfortunately, the problem is us, the public. We want to believe all education is good no matter what, and in the name of (false) equality, we don’t want to say one degree is better than another.
Why this thought persists is beyond me, especially since 80% of college students don’t have jobs on graduation and student debt is at insane levels.
Given a surplus of college educated potential employees, why would employers drop requirements for college degrees? Job posting are swamped with applications so the initial task is to cull down to a few to give more consideration to. From what I see, job postings typically are asking for unicorns. This isn't causing the supply of unicorns to go up in the world. But if there were fewer college graduates and they were getting a significant boost in wages, then employers would search for actual capabilities.
Large companies pushed the idea that everyone should go to college and everyone should learn to code. Any time large companies throw their money behind something, be skeptical, because odds are its self serving.
The more people who go to college the higher tuition costs rise and the lower skilled labor wages fall. It's all supply and demand, more people go to college, college costs more, more people have degrees, degrees lose their value.
Who benefits? The companies who now get to pay less for skilled labor. Who misses out? The students who now have to work twice as hard under perpetual debt.
Now what are large companies throwing their money at? Lobbying for how to deal with the debt crisis they created by inflating the cost of college in the first place, and what is their solution? To basically make college tax payer funded, that way everyone goes to college and they get to pay even less for skilled work. Ultimately they might make a college degree as worthless as a high school diploma.
I tell myself Universities and colleges are neither obligated to find jobs, nor stimulate the economy. The reasoning helps when you make that payment every month, one stops becoming bitter, especially when have the attitude of entitlement. Still new students keep coming with great expectations when they graduate, you have to hand it to great marketing - they're not selling an education, they're selling a dream. And though intentions are well and good, fact of the matter is supply out pace demand and we have a glut.
But the Universities and Colleges have said that their degrees with help graduates find jobs. The problem is that they have lied. Imagine going to college and being told that you'll get a great job and will help the economy, and then after you graduate they just say "we aren't obligated to do that actually".
I hardly think it was just “a shift in mindset” that was responsible for the valuing of college degrees. There were major shifts in the job market. How many of the jobs require a college degree vs the number of people who have them. Perhaps it’s not education arbitrage but wage suppression (in addition to the insane increase in cost) that has devalued education.
I didnt go to college, while many of my friends did. I dont make the most but im not poor either. However i have debt free peace of mind and im glad i understand that many jobs don’t require a degree. College debt wouldn’t be nearly as bad if it werent for the interest rates.
I think colleges need to get rid of gen ed requirements if you know your field you should only have to do your major requirements but they want that money out of you
DON'T BLAME COLLEGES, THEY HAVE PROFESSORS ON SABBATICAL AND ARMIES OF ADMINISTRATORS TO FEED
Colleges are to blame. They are increasing their expenses to compete with other colleges that are doing the same, which needs more expensive tuition.
Employers stop hiring college children. That will bring the cost of tuition down. Train someone instead.
Consider learning skills outside of college. If you do go to college, don't major in something useless. Get your money's worth. But don't blame colleges and lenders for your bad decisions; they're not going to do the research for you.
In the short term, parents and potential students will be the first to respond, by being more realistic about educational skills and quality, and employment outlook. Next, there is a bit of a chance that governments will stop propagandizing the value of college education.
What about micro-schools? For example, you only want to go a certain thing, maybe a much, much smaller but accredited or recognized school could be made that would allow you to focus on that without needing all the other things. Plus, such schools would be in charge of many of their own things, hopefully.
You mean a tech school? Those exist, but kids usually use them as "transfer schools" to transfer out of as soon as they have their main courses.
+Forrest Skinner I guess tech schools yes, but with a simpler structure and a one where kids dont need to transfer. They can just got to the school.
lateblossom You can graduate from a trade/technical college.
+Forrest Skinner Oh I know but instead of having to transfer you can just go to the school directly out of highschool without all the riffraff. I guess I did mean tech school but had a slightly different idea in mind.
Some places do that as well.lateblossom
I personally loved the education I've obtained and would not return it. However, I am in the process of searching for my third job because of the student loans. My life for the next year is paying off loan then the next two years after that, saving to buy a condo. Then hopefully, by the time am 30 I can save to live a life beyond working and bills. All my education and I still feel like a puppet to the "normal.
Watching this on a 4k screen laptop after college #FeelsGoodMan
Laptop specs?
Nunya
Problem is all the good jobs have gone elsewhere. Only jobs left, you have to have a degree for. If not, wal mart and McDonald's is all that's left. Yes, people want those degree jobs, because you can live on those other wages. If the production ( middle class ) jobs were to return, not so many people would be going to college.
The problem is the debt and the courses being taught are outdated by several years if not decade(s).
The student loan debt is not the only crisis. When you add child support payments on top then problem is worst. With both programs you cannot discharge in bankruptcy. Why is the government imposing this restriction on our future population?
Congress could change both programs within one session.
No mention of tuition free public college?
technical schools/stem should be taught in different schools than the liberal arts. Therefore they can be reasonably priced differently.
Right on dude
I'm not sure if what he's concluding is correct or if I missed his conclusion. If society disregards attendance to college and universities to work in the labor force today, wouldn't the future society be less educated or held to a less standard of education from that of an educated society today? I would like to think there would be a demand for education if this were to happen, but I do not believe it would be likely, because it seems there is an institutional cognitive dissidence towards training for occupation positions in onward moving markets as examined by academic statistical studies taken from 2012 to 2017. Moreover, this seems either it was controversially by design (meaning out of ignorance or perhaps by conspiratorial systemic agenda) or academics are unable to adapt to a rapid moving markets with essential skills to fill needed skills. If that were the case then wouldn't career jobs create their own institutions for getting the skills they need? If this were true then wouldn't we see more of this in academic demand perhaps by competition? I am led to conclude the state of the economy has trapped certain markets from creating their own institutions for needed skills, perhaps that's why to me it seems there is still a lack of academic and institutional mobility or to keep up with needed skills for current markets.
American Dream, now, is more like American nightmare.
Good point. I don't see how the solutions you proposed would come to pass though. I think at least for certain disciplines it is much better to learn through apprenticeship, and given the abundance of online courses, colleges' monopoly on education and learning will soon be over as more and more people realize college is a bad deal. let's make student loan debt dischargeable through bankrupty, so these swindled kids get a fresh start at life.
Man I would know about this !
I have a useless BS in biology from Penn State with $70000 in debt and the only job I could be qualified for is a lab tech fill and pour test tubes all day and pay is absolutely ridiculous. I would be lucky to even get that 100+ applications and no one even responds Now I’m going back to get a graduate degree because why not bury myself deeper for a chance to just be able to feed myself because honestly it feels like that’s all one should hope for. I dreamt of having my own house, a car and to at least be able to afford one trip in my lifetime but we got played long time for that
i think people need to share their stories whether they went to college or not, what they studied, what there debt is, where they work---as some sort of catharsis. People need to know there not alone
Ruben Perez
They need to also share the truth on what they spent the money on.
I've seen it go to gaming computers,airline and hotel for spring break,Starbucks,whole foods,car lease,raising a child,vacations,bike,Netflix,nice apartment,nail salon,etc,iPhone,tattoos,etc..
This was good.
Head of UCF makes about$400k+ a year.
WHY? Why doesnt a head worker need to make that much?
I agree with Raphael Eze. Let the student learn. Isn't that what everyone is taught at early age. Parents have to put children in school, if they don't go to school parents can get in trouble.Children go to school starting at 3 and 4 years old till 18 years old. then you are told to go to college. Big change. A lot of money involved. some parents can't afford it, so their children don't go. Even though the have a child that really likes to have an education. Sure you can get fasa. but that's not enough. That's were the debt comes in for the parent. Because a parent is going to do whatever they have to do to see their child succeed. And that is what the colleges know. That's it!
How about the states have more control over what universities can spend funds on. No more buying lazy rivers, fancy hotel-esque dorms, 1 million dollar score boards, and executives with 150K salaries or higher whose job titles we can't even see.
If a Nation capable of spending billions on war and destruction . . . .I am sure they can afford to provide free education and health care for THE PEOPLE. It is time for change folks, we all have to stand up to make that change to come
As of December 2017, 40% of all outstanding US Student loans are not getting paid. This isn’t just a financial problem around loans, government’s corporate employment and tax policies have created a situation were Americans can’t afford to get by. I am expecting mass emigration of educated Americans to other countries soon.
Following data, in trillions of US$, pertain to household borrowing. They from the 12/10/2020 issue of Fed release Z.1, and are as of 30 September 2020.
1.7 Student loans
0.9 Credit card debt
1.2 Car loans
0.3 Other consumer credit
10.8 Home mortgages and lines of credit secured by residences
0.4 Other loans from depository institutions
0.6 Other loans not included above.
The size and growth of student loans are concerning.
"I believe that all economic bubbles typically start with good intentions in the government".
That's a sweeping statement and one that requires a single instance to disprove - he might want to re-evaluate this before I give it a couple of seconds thought.
Similarly, he's not talking about meritocracy for all his words - think about Trump's position in a society that was functioning "efficiently".
Recently heard that within 8 years only 15% of people with a degree will be working within their field. They get out of the field within 8 years... what abt the investment... ?That’s crazy!
The problem are the people. Way too many of them are in college. Not everyone can be a doctor, lawyer or architect. The rest of the population has to fill in all the other jobs that don't pay a fortune. Id cut admission to 10% of what it is now. Graduates would be in high demand. It use to be valuable. Now it's as common as a Facebook or Twitter account. The fault falls on two people. The students who sign up for these loans, and in turn their parents. If you can't figure out student loans and understand what will happen after, don't do it.
I never understood why every loan must be approved by an underwriter, except these huge student loans. I can't take out a car loan and buy a range rover, but in my mid 30s I could take out 120k for a second bachelors degree in anything I want without proving I can pay it back like I'd have to for a Range rover.
now you need to be a doctor to align box of chili at Walmart. :)
It's not at "government-problem". "The government is the problem" was a propaganda-slogan only meant for the ordinary citizens. For Big Capital the Government was instead the solution. Thats why it's been highjacked by them.
It's a society moral greed-problem in general. In the very fabric of American culture - spearheaded by big capital short-term interests (the fish rottens from the head and downwards).
As long as problems/solutions are presented as technical instead of moral/cultural, the solution is no where in sight.
Choose your major carefully don't major in liberal arts and theater and then have to work retail to pay it off. Have a back up plan
I doubt if I get the Job after I graduate, its very scary
I'm watching this as a German who has a student loan debt of 7000 €,which is the highest of all my friends. I'm shocked at how horrible the American system is. 😱😳
What bothers me the most though about these types of conversations is that the people who may potentially benefit from any sort of mitigation of these problems are the future college students. The entire generation or two or people who went to school and graduated through this problem will just have to tough it out? Student debt is going to always be a problem for these people.
You need to have bankruptcy protection restored to student loans. That would solve the problem for people burdened with this ridiculous amount of student debt.
jeshika22 Unfortunately, one or two generations must endure negative outcomes before any lessons are learned and passed on to future generations. This applies to most experiments/innovations. Student loans were just a bad experiment that our generation happen to be the subject of. Hopefully, more people speak out on it and come out with some plausible solutions.
WRONG! Dusty nails this AS LONG AS you view college education strictly from a capitalist perspective. His argument presupposes that the purpose for education is to make money. This idea that school readies students for the work force (a.k.a. schools = factories) is outdated and not humanistic. (By the way, I hold a M.S. and my wife is a doctor and we are straddled with student debt and pissed about it.) The problem is REAL but Dusty's solutions attack the wrong problem. Many modern successful countries value education for the sake of education and offer free college education to all citizens. Dusty's solution #1 "floating interest rates" means rates are not fixed... it will cost MORE, making education more expensive and keeping the lower and even middle socioeconomic groups from being able to afford it. There goes the ladder to self improvement. His approach does address the symptoms but does not further the upward mobility of all. Let's value education and keep it divorced from the all too important economy. The REAL SOLUTION is to reduce the cost to attend public Universities (ideally to zero). Allow anyone who can maintain good grades to attend for free, knowing that only the best performers will obtain the best paying jobs. ADDITIONALLY, we need to start teaching our youth to value the lower paying skills. Carpenter, cab drivers, food employees are important and necessary and should be respected and paid better. We would end up with better performance in those jobs. Dusty is a typical business trained capitalist economist who sees the whole world through the profit/loss lens. (By the way, I have a B.S. in business and I KNOW how business leaders have been taught to think... only Mr. Profit is important.)
finally someone who gets it!
School is for workforce. To obtain knowledge you do not need school. Your model is outdated. In today's modern world the only thing schools offer of value is preparation for the workforce and so some degrees are 100% worthless, even if you're very wealthy and can afford it easily. You get better knowledge from self educating through reading books, watching documentaries, keeping up with science news and such, not sitting in a class room and being instructed.
All colleges should become public libraries.
All professors should become youtubers.
All students should educate themselves using colleges libraries and UA-cam.
Stagnant wages are the bigger problem.
So I hear the knowledge behind the idea, What is someone going to do about it? Is there someone out there that can make a change? You are telling people about how the colleges work with student loans and how corrupt it is and I agree. WHAT IS SOMEONE GOING TO DO ABOUT IT? What's the purpose of the knowledge you are letting people know about. I would love to see action taken to help the students not to have a debt. It's hard enough leaving high school to go out into the world for college to get put into the world already in debt. But I have always told my Children to do your best in whatever they do. They may be the ones to make a difference with a lot of others if they can afford the education.