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TMFBane (40.75)

Free Us From Debt

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October 10, 2011 – Comments (16)

Mike Konczal of Rortybomb has analyzed the very effective We Are 99% site, and has found that the remarks boil down to two things: free us from the bondage of debt and give us the basic ability to survive.  

The post is here, and I highly recommend it. There is a student debt crisis in this country right now, which is desperately in need of attention. I spent my weekend writing a paper on For-Proft Colleges for an ethics class I'm taking for my MBA. It's incredible to think of the debts people run up while pursuing a college degree.

16 Comments – Post Your Own

#1) On October 10, 2011 at 3:45 PM, miteycasey (30.15) wrote:

The thing is they still pay it never mind the return on that investment can be horrible, depending on degree.

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#2) On October 10, 2011 at 4:00 PM, PeteysTired (< 20) wrote:

I admit I don't understand student debt, but are students able to file for bacnkruptcy?

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#3) On October 10, 2011 at 4:09 PM, TMFBane (40.75) wrote:

My understanding is that student loan debt is exempted from bankruptcy. That might be a provision that is worth revisiting.

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#4) On October 10, 2011 at 5:26 PM, dwot (39.30) wrote:

I saw a show on the student debt and it featured an age 40 something woman who made good money, about $80k, but an effective income of about $40k because of the debt and when you looked at the figures she was showing, she was never going to get out of that debt.  I think there was a period in her life when she lacked the means to pay on the debt and adding of interest onto the principal was enormous in putting her into debt spiral of no return. 

There is a debt crisis in so many areas...

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#5) On October 10, 2011 at 5:57 PM, devoish (96.50) wrote:

TMFBane,

That rortybomb link was absolutely the most thoughtfully considered analysis of what is going on by a long shot.

Thank you for sharing it. Hard to see them buying my shares in GE anytime soon. Trickle up economics.

Best wishes,

Steven

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#6) On October 10, 2011 at 6:00 PM, BillyTG (29.12) wrote:

Debt is modern slavery. I think indebting as many people as possible is part of the endgame globalist order because it disempowers the masses. Give this article a read. It's called "8 Reasons Why Young Americans Don't Fight Back." Student Loan Debt is their #1 reason.  "Large debt—and the fear it creates—is a pacifying force."

Here's an article I just found on a proposal to include student debt in bankruptcy.

As explained in a press release from Senator Durbin’s office: “Before changes were made to the bankruptcy code in 2005, only government issued or guaranteed student loans were protected during bankruptcy. This protection has been in place since 1978 and was intended to safeguard federal investments in higher education. Today’s bill would restore the bankruptcy law, as it pertains to private student loans, to the language that was in place before 2005, so that privately issued student loans will once again be dischargeable in bankruptcy.”

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#7) On October 10, 2011 at 6:30 PM, BillyTG (29.12) wrote:

TMFBane, read the analysis and, like devoish, blown away at the results, and how he noted how humble the people were (jealousy not noted). The tumblr pictures are heartbreaking.

miteycasey, that debate has deservedly shown up here on the TMF blogs a few times. The whole"go to college and you'll succeed" mantra is part of the national school system indoctrination. We are brainwashed into thinking that is the only way. You're right--- If the return on investment isn't there, college can be downright stupid compared to learning a trade like plumbing or welding.

Fight Club, the movie, summed it up best. Graduate collge, NOW WHAT?! Adults are dumb. We do things because those before us did (or did not do) those same things: religion, marriage, spending, savings, house buying, voting, education, stay in one job for 40 years, etc. Few ever bother to ask WHY.

"My father never went to college so it was really important I go to college. After college, I called him long distance and said, now what?
My dad didn't know, so he said get a job.
When I got a job and turned twenty-five, long distance, I said, now what? My dad didn't know, so he said, get married."

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#8) On October 10, 2011 at 6:37 PM, TMFDiogenes (81.99) wrote:

Yeah, student debts don't get wiped out during bankruptcy.

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#9) On October 10, 2011 at 7:51 PM, carfun (< 20) wrote:

I have been irritated by the local college and junior college that seem to be in a building frenzy. It's like there is a race to see who can spend the most in the name of luring students. I think there will come a point this will have to stop because the expense for students is too great. Perhaps the Durbin bill will be the tipping point as people loaning may be more selective in making loans if it becomes possible for a student to graduate and immediately file bankrupcy to get out of debt. Kind of reminds me of the housing bubble. It does seem like the current administration would like to control all student loans.

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#10) On October 10, 2011 at 10:31 PM, TMFBane (40.75) wrote:

Great comments, everyone. I'm glad that some of you enjoyed the post by Mike K. I found it interesting that he mentioned the great classical historian Moses Finley who spoke of, "the perennial revolutionary programme of antiquity, cancel debts and redistribute the land, the slogan of a peasantry, not of a working class." Fascinating stuff!  

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#11) On October 11, 2011 at 11:36 AM, outoffocus (23.17) wrote:

Debt is modern slavery.

Debt has always been slavery, even the Bible says so. 

The rich rule over the poor, and the borrower is servant to the lender.~ Proverbs 22:7

The thing is they still pay it never mind the return on that investment can be horrible, depending on degree.

College education is in a bubble you wouldn't believe.  The ROI on the vast majority of degrees is NEGATIVE! Especially since they average degree now takes 5 years instead of 4.

Unless you go to a state school on a scholarship, and have a useful trade (accounting, engineering, science, or go to trade schools like Devry) as a major, its practically better for people to save that college money and use it to start a business.

The College tuition bubble HAS to pop sooner or later. Its no telling how ugly that will be. 

 

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#12) On October 11, 2011 at 11:41 AM, outoffocus (23.17) wrote:

carfun

I have been irritated by the local college and junior college that seem to be in a building frenzy.

Me too. My alma mater went on like a building spree right after I graduated.  They took what used to be the quad and put an entire dorm building in it.  Now the main campus just looks like a bunch of high rise tenements. I agree this will become to expensive. See my previous comment.

 

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#13) On October 11, 2011 at 11:51 AM, outoffocus (23.17) wrote:

As to the article. Interesting data collection and analysis. Can't say I agree with his conclusions though.

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#14) On October 11, 2011 at 12:49 PM, outoffocus (23.17) wrote:

Aww crud I didnt know this was posted yesterday. Oh well..

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#15) On October 11, 2011 at 7:56 PM, Bert31 (36.66) wrote:

Here is an interesting opinion on college costs

http://www.investors.com/NewsAndAnalysis/Article/585302/201109191844/By-The-Way-We-Teach-A-Little-Too.aspx?fromcampaign=1

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#16) On October 12, 2011 at 12:17 AM, AvianFlu (25.10) wrote:

Don't worry. Your debts will be effectively eliminated through massive inflation, assuming you went for a fixed rate loan!

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