Thursday, July 24, 2014

Entrapment of Our Youth

Students Debts.jpeg

July 22, 2014

Written by Art Costello


1.2 trillion dollars in student debt is what I call entrapment! I couldn’t even begin to imagine what it would be like to be young and $32,000 in debt before I even had a job. That's the average amount of debts per student enrollment in this country. Nine months after graduation an average student begins payment of their loan at $350 per month. The average college graduate income is now at an all time high of $43,000 a year and non-graduate income drops to $21,000 a year. It doesn’t matter if you graduate or not the loan gets paid back. These figures do not include the debt the families may have if they took loans from their IRA’s, second mortgages, etc. to pay for their child’s education. The current administration has presented a forgiveness program on student debt, which shifts the burden from the student to the general population.

I have a way of looking at things from a different perspective a great deal of the time and this issue is a prime example. I am not against anyone getting educated as I have a college degree myself. However, it has always been my belief that living life is one of the greatest education sources available to us. I’ll leave the ineptness of the education system for another time and place my concern on how our young people are burdening themselves in debt and how and why it matters.

If you look at the last election figures, the current president wins the election on the vote of the youth in America. The promise was made that things would change and opportunity would flourish for the young and in general I think many of the youth feel the president delivered on that promise. The question from my perspective is at what cost for my son or daughter?

The answer is higher taxes, less savings, higher rents, less living life freely, more time at work, less fun and traveling, and the list could go on for a very long time. You sell your soul to the devil for an education and a dream by offering yourself up to enslavement in debt.

Those of us who have lived in this country for many years know the dread of the word debt. It can and will define the course of your life. Creditors hold the keys to your existence! Apply for a job, credit check, apply for living accommodations (rent or buy), and credit check! There isn’t much that happens in this country that doesn’t involve the credit industry. It is so powerful that in most circumstances you can claim bankruptcy for any reason other that student debt, it is exempt from the bankruptcy laws. There is no better way to entrap a generation than to put them into financial debt and squeeze the noose that controls them!

How do we as parents regain the control of our children’s future? I think it lies within us as parents. We must come to grips that the times and the world have changed and every child can be successful without a college degree. If a young adult wants something bad enough, they will find a way to attain it without selling their soul to the creditors. Many parents of these kids are just like us. We had to figure out a way to work ourselves through college and we learned many great life lessons on the journey. Another aspect to look at is that many of the most influential people in our business world don’t have college degrees and are proof knowledge can be learned outside of the system. We seem to be living under the notion that in order to be successful you must have a formal education and degree.

There are many professions, which do require advanced education degree, but even those students are accumulating massive amounts of debt, which can be in excess of 5 and 6 figures.

What’s the human cost of education coming to?


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