Catherine Austin Fitts reviews 'The Student Loan Scam'

[don]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

The deeper question is what role will education - meaning formal education of the masses, not the elite - be asked to play in an international financialized economy. That particular field is highly susceptible to both automation and outsourcing, despite characterizing the economy. Dead-end retail, jail and the military are the recipients of the current system. Increasingly US education is, as noted above, fertile ground for speculation gaming. Will the children of the proles continue to go along with the program?

[shiny!]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

well, I will NOT, but I can't stop my wife and I'm sure SHE will bail him out later if she can. Which brings up an issue that I've seen many times, PARENTS are the ones signing these kids up for these student loans (like my wife did) and just TELLING the kids "just sign here" often telling the kid that it is the PARENT getting a LOAN for the STUDENTl.
NOT TRUE, but, you know who gets stuck with the bill later. so we should not be so quick to blame the kids.

Another issue is the irresonsibilty of TEENAGERS, they talk of these student loans like it's "FREE MONEY", remember, they're 18 and not helped by commissioned student aid counserlors telling them "free/no interest while in school" MEANS "free - trust me".

It's really a shame that public education doesn't prepare high school students for the real world. Graduating students should know how to read and understand contracts, utility bills and leases, know how to make a budget and balance a checkbook, and understand how things like revolving credit, compound interest and exponential math works. A basic life skills class. I ache for your son...

My husband and I had a rule that if one of us wanted to spend more than $100 on something, we had to first discuss it with each other and both of us had to agree on it before we could buy it. It didn't keep us out of trouble on the student loan, but after that experience we were a lot more cautious and that rule helped keep us on the same page and ensured financial harmony between us.

[BadJuju]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

I have taken out a fair amount of student loans; however, I am not particularly concerned. If I do not have a job after college, then they cannot take money from me when I do not have any. Furthermore, considering the devaluation of money as time goes on and increased earning power with experience, it just seems logical to take a loan now and to pay it later. And given the interest rates, which hover around 3-5% for mine, it really is a no-brainer.

[Milton Kuo]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

I have taken out a fair amount of student loans; however, I am not particularly concerned. If I do not have a job after college, then they cannot take money from me when I do not have any. Furthermore, considering the devaluation of money as time goes on and increased earning power with experience, it just seems logical to take a loan now and to pay it later. And given the interest rates, which hover around 3-5% for mine, it really is a no-brainer.

You might want to read your contracts to see what the penalties for default are and what constitutes a default.

[BadJuju]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

They still cannot do anything. I do not own anything. They cannot take away any land, a home, a car, or anything. So unless I get a job, they will not see a dime of it. And if I have a job, it won't matter. Still, I am not worried about being able to pay it. I am an electrical worker with field experience, certificates, and degrees. I can find a job somewhere!

[DaveGillie]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

You might want to read your contracts to see what the penalties for default are and what constitutes a default.

non dischargeable via bankruptcy means it stays with you a LIFETIME.
USURY Late fees means that ignoring them for a while just means you owe a LOT MORE.
and you WILL inherit something one day (well, the loan collectors will)
and remember, being behind on Fed Student loans means a lot more penalties than just financial, you'll have bad credit and be ineligible for some Fed programs ETC

[c1ue]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

They still cannot do anything. I do not own anything. They cannot take away any land, a home, a car, or anything. So unless I get a job, they will not see a dime of it. And if I have a job, it won't matter. Still, I am not worried about being able to pay it. I am an electrical worker with field experience, certificates, and degrees. I can find a job somewhere!

Unless you plan to 'brown bag' your pay forever, the debt just keeps piling up.

Any legal job you get, the pay can be garnished 15%. Any government benefits, including unemployment in some states, can be withheld. Bank accounts can be seized.

I'm still waiting for the next fillip: debtor's prison for student loan defaults, with said prisoner then working for the Prison Corporation of America or some such for minimum wage, all the while accruing interest on their outstanding student loan debt.

[don]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

Reading the above, are Student Loans the pilot program for future debtors?

FIRE never sleeps but it does dream . . . .

[thriftyandboringinohio]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

Reading the above, are Student Loans the pilot program for future debtors?

FIRE never sleeps but it does dream . . . .

Excellent thought. Perhaps it's a long-term training program to get the next generations accustomed to accepting debt that can never be forgiven, period.

[brent217]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

I have taken out a fair amount of student loans; however, I am not particularly concerned. If I do not have a job after college, then they cannot take money from me when I do not have any. Furthermore, considering the devaluation of money as time goes on and increased earning power with experience, it just seems logical to take a loan now and to pay it later. And given the interest rates, which hover around 3-5% for mine, it really is a no-brainer.

Contract Reading Fail!

1. If the penalties for late or non-payment > devaluation of money over time (and so far they are, by a HUGE margin) then this will burn you. Badly.

2. Increased earning power with experience happens less often when you lose your licence to work in your field for being late or not paying your loans.

[BadJuju]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

1. Income levels have increased consistently across the board for decades, although the value of that income has decreased. Now that means a lot when it comes to loans since the principle stays the same aside from interest accrued. The point I was making is that I will have to work less to pay for the loans than I would if I had earned the money from a job now. Also, the degree will help me earn more money so I will have to work less in that regard. I am also banking on further devaluation of the dollar as we all expect to occur from QE and other inflationary measures exacted or incidental.

2. It will be impossible to lose my license if I do not have one. You do not have to have a license when you work under another contractor. You fall under their license.

I have given thought to this. I am not being reckless. None of this is fool proof. Shit happens and I could get burned on it. Even so, I am wagering that I will benefit from this bet. It is a calculated risk, just like getting into the stock market.

[c1ue]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

The point I was making is that I will have to work less to pay for the loans than I would if I had earned the money from a job now. Also, the degree will help me earn more money so I will have to work less in that regard.

Unless your loan is somehow different - i.e. interest doesn't compound - then this theory will only work if the interest rate you're being charged is lower than your income growth.

Highly unlikely, except for perhaps the first 3 years of full time employment in a corporation - which is when you'll see the highest percentage gains.

And of course, garnishment of wages if you actually have a non-black market job is another factor.

I am also banking on further devaluation of the dollar as we all expect to occur from QE and other inflationary measures exacted or incidental.

The devaluation will occur, but it is going to impact your costs. It is also quite unclear if inflation due to devaluation will translate into higher wages - certainly it hasn't happened in the past decade plus.

[shiny!]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

1. Income levels have increased consistently across the board for decades, although the value of that income has decreased. Now that means a lot when it comes to loans since the principle stays the same aside from interest accrued. The point I was making is that I will have to work less to pay for the loans than I would if I had earned the money from a job now. Also, the degree will help me earn more money so I will have to work less in that regard. I am also banking on further devaluation of the dollar as we all expect to occur from QE and other inflationary measures exacted or incidental.

This is quite an assumption, one my husband made that didn't pan out at all.

2. It will be impossible to lose my license if I do not have one. You do not have to have a license when you work under another contractor. You fall under their license.

A lot of employers look carefully at the credit history of their potential employees, especially if they contract to work in secure facilities. They view an employee's credit history as a reflection of their reliability and responsibility.

I have given thought to this. I am not being reckless. None of this is fool proof. Shit happens and I could get burned on it. Even so, I am wagering that I will benefit from this bet. It is a calculated risk, just like getting into the stock market.

It looks to me like your calculated risk is heavily weighted towards a "best case" scenario. Every wager has a downside risk. Have you also specifically calculated how you will live if things don't go according to plan? Life is long and full of unhappy surprises, like long-term unemployment, illness, disability from an accident...

What if your only source of income is a monthly $660 Social Security disability check, and they withhold that from you because you didn't pay your loan? My next-door neighbor is a 35-year old former roofing contractor who barely survives month-to-month on his social security disability check. He fell off a roof, suffered a spinal cord injury and is permanently disabled. He never thought it could happen to him.

When you lose money in the stock market you've only lost money. When you bet on your future earning capacity you're also betting on your ability to support yourself if things don't go according to plan. I fear you're setting yourself up for getting hurt in ways you will not be prepared for!

[cjppjc]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

1. Income levels have increased consistently across the board for decades, although the value of that income has decreased. Now that means a lot when it comes to loans since the principle stays the same aside from interest accrued. The point I was making is that I will have to work less to pay for the loans than I would if I had earned the money from a job now. Also, the degree will help me earn more money so I will have to work less in that regard. I am also banking on further devaluation of the dollar as we all expect to occur from QE and other inflationary measures exacted or incidental.

2. It will be impossible to lose my license if I do not have one. You do not have to have a license when you work under another contractor. You fall under their license.

I have given thought to this. I am not being reckless. None of this is fool proof. Shit happens and I could get burned on it. Even so, I am wagering that I will benefit from this bet. It is a calculated risk, just like getting into the stock market.

Shit does happen. I hope your calculated risk pans out. Just don't beat yourself up over it if it doesn't. The best posts on here are the ones that allow for self doubt.

[aaron]

Re: Catherine Austin Fitts reviews 'The Student Loan Scam'

Congress will have to change the law and allow one to discharge student loans in bankruptcy.
Bernanke will buy all the bad debt at par before the law goes into effect.
Everybody will be happy.