The above graph shows how student loan debt has grown to exceed both auto loans & credit card debt in the last few years. It is like credit card users & auto borrowers have the good sense to cut back but students (& their parents) don't – or can't.
I hope that everyone saw the Huckabee special on FNC on June 23 & 24 in which the Governor devoted the entire program to the plight of students with large debt (one law school graduate on the show has over $200,000 in debt & one economics Masters Degree holder sent out 300 responses to employment ads & did not get one job offer). Please click on this link to get a flavor for this based on a segment of another Huckabee Show earlier in June.
The worst part of both of these excellent TV programs was when Governor Huckabee asked some of the disillusioned youths who are strapped with debt & no job prospects if it was worth it for them to get a college education. What a terrible & wrong question to ask. America is doomed – which we just about are anyway - when this becomes the choice.
Instead of asking such a hopeless question it would be so much more productive for Governor Huckabee & everyone else to explain the solution for stopping the ever increasing tuition costs – namely, the government should be out of the student loan business. Government involvement increases tuition because as government education subsidies (loans) increase so do the universities' tuitions.
Now there are some statists who have told me that reductions in state aid to public universities result in higher tuition costs. But how could this be true unless there was some universal law that costs must keep going up irrespective of funding. It is far more believable that if government throws money @ a problem the problem will expand than to believe if one of the sources of funding dries up costs increase anyway.
Anne Neal, President of ACTA, recently identified another even more fundamental problem with America's education system – one that I have exposed numerous times - "...the adults on campus...have failed to point students to what they need to know & be able to do. ACTA's research shows that only 5% of colleges require their students to take even a basic economics class. Just 20% require a single foundation course in American history or government. Meanwhile, studies show that academic standards & expectations – in terms of assigned reading & writing – continue to decline. It's no wonder that many graduates are having trouble finding that first job, & that our country is faced with a generation of students buried in debt & without the college level skills to climb out of it." Although our education problems started long before BO became a national figure Anne Neal perfectly describes BO's plan.
Students & recent graduates today are like lambs being led to the debt slaughter – exactly per BO's design. First BO devastated people in their 50s who will never work again @ the income level they once knew, if @ all – these people will live off of income from low paying jobs, if any, making up the difference in their accustomed standard of living by spending down their wealth for the rest of their lives. Seniors have been crippled by the lowest CD interest rates in history meaning they too are spending down their wealth to maintain their accustomed standard of living. Students & recent graduates complete BO's trifecta as described above. The only group left not totally crippled by BO's vision of America is people in their highest earning years who will carry us with tax revenues to cover the ever expanding government-dependent people for a while.