The university bubble is building and it is no longer funny, it is serious. Did we learn nothing from the government’s involvement in FREDDIE and FANNY and the housing crisis? Apparently it does not seem. The cost of college tuition increases every year, administration costs and legacy costs also increase. The bubble is ready to burst, kicking the can down the road again, only making it worse. Those who do not go back to studying history, are doomed to repeat, and yet we rewrite the university history textbooks, now everyone is a winner, no one has to compete.
The Obama administration went after the for-profit universities in a big way, suing them to eliminate them, only so that public universities and long-standing private academia could offer such courses, and the government would guarantee the loans. Recipe for disaster, less competition, political correctness brainwashing and silly courses to make everyone feel good about equality, but useless degrees for skills in American companies, how did we get it so bad? The leftist agenda has almost ruined the academy with its socialist views.
On September 27, 2016, according to CNBC business news, Maria Bartoromo stated; “Barclays cautions that the default burden on student loans through 2020 is underestimated by at least $ 225 billion,” and Peter Schiff says that “the government should never have entered this sector in the first place.” Democrats say the government should be involved in job creation and college tuition loans. Currently, there are $ 1.7 trillion in outstanding college loans, 40% of which are in “technical default,” meaning 40% are 90 days past due with no payment.
Hillary Clinton promises to help renegotiate that debt for those with outstanding college loan debt and FREE tuition for anyone entering college, but how is that fair to those who paid off their loans on time? Hillary’s plan is to charge students only what they can afford, and those whose parents have a household income of less than $ 125,000, at no or almost no cost. This plan cannot work obviously.
And just as the Obama administration had promised people who were behind on their mortgages the opportunity to renegotiate, it turns out that the banks reneged and foreclosed on anyway. Right now, only the promise of a president who has not yet been elected is causing students and alumni to stop paying their college fees, which means that the rate of decline next year will be more like 50% and dollars outstanding at the end of 2017 will be closer to the $ 2 trillion that the taxpayer guaranteeing those loans is ultimately committed to.
Socialist-minded voters believe that everyone has the right to go to college and that it is something the government should be involved in, but why? Look, it didn’t work in Ireland and Saudi Arabia, where they educated all the youngsters, their economies are crashing, and it didn’t really help create jobs or grow the economy. Educating everyone does not guarantee anything.