AMERICAM HIGHER EDUCATION: FOUND ON A SCANDEL
EDUCATION IN THE STATES MAY BE THE BEST BUT THE CONDITION OF THE STUDENTS ARE THE WORST WITH DEBT SO MUCH THAT SOME OF THEM CAN NEVER PAY OFF IN THEIR LIFE.
The colleges are now BILLION dollar CORPORATIONS with billions of tax free money. If they were to compare Fortune 500.Companies some universities might even be bigger than them. When they have so much of tax fee money they can let that money depreciate in value (you know inflation) this would be bad business, sorry sorry the university. Their income through tuition fees is only a small part of their revenue only 30%.
Therefore they invest in real-estate which is also tax free they build large golf courses , giant stadiums etc and they have college hedge funds to manage their billions of dollars but hedge fund does not sound good so they call it ENDOWMENTS.
All the universities have endowments, some have massive endowments like Howards, Yale and many other ivy league colleges. For example Howards have endowments worth $40 BILLIION and Yale has $31 BILLION. This is enough for Howard to afford their $50,000 yearly fees for all their students for not only for 10 or 20 years but for 120 years for free.
Still there is an increase in tuition fees and they also ask for state funds to help them support education. They are not satisfied by this they receive foreign gifts it is reported that they received $12 BILLION since 2012, they also need donations for building their new buildings and sponsorships from fake philanthropists to save on tax. This is pure scam!
US students have more than $1.6 TRILLION in student loan debts. The student loans now have embedded so much in the system the education system of America now it is impossible to remove it. There are game shows to have debts removed like PAID OFF. The college fees rose 4 times the rate of inflation. Where as countries like GERMANY give free education.
And this started by-
The selling the idea of the biggest and the best investment was only by getting a higher education was the only way the politicians could catch the strings of a new puppet which will eventually become their vote bank.
The American politicians in 1960s came with the idea of making this dream into reality. Since during that time the colleges fees was very expensive, they came with the idea of student loans. The problem with this was banks were not willing to give loans to the students who had no assets no knowledge of real world cause it was a lot of risk. So the politicians in 1965 came with a scheme that will solve this problem. So Federal Family Education Loans (FFEL) was launched, in this scheme if the student is unable to pay off the loan then the government would pay off the debt.
This was a win-win situation but no one knew that this will become one of the greatest scams ever witnessed in the history. In theory this is good for everyone students get loans to study, the universities get students, the bank gets zero risk on the loans issued and teachers would get a well paying job with very less working hours.
This became a money machine for banks and the colleges. A series if reckless lending started backed by the tax payers money. No one could opposed as who wants to be anti-education.
Banks started to raise their interest rates without any fear and colleges started to raise their tuitions . Now getting into college was now more of a financial burden then ever. The colleges saw this as an money making machine. As of this time many universities came up to take a dive in this river of gold. Universities never thought about the students or the society, their goal was only print as much as you can. The college fees continued to increase. It raised from around $6000 in 1965 to $18000 in state owned universities and even more in private colleges.
Now the universities were competing among them shelves to get as much students they can.
The teenagers at that time cared about nothing but parties, adventures, love ,lust and etc but nothing that could help them in their career and pay off their debt. So universities came up with flashy campuses with luxary pools, gaint stadiums, golf courts, rafting ,rick walls and things which had no connection to the studies ,these were only to attract the students. They also came up with nation wide sports competition to determine the best college like NCAA.
The purpose of FFEL was lost by this time.
The government understood this problem but they could not do anything about it because it they remove the student loan schemes then they become anti-education and they lose their voters. But they tried to remove to middle man the bank in process and now the loans directly goes from the pocket of the federal government and now no longer the government would pay for the payment defaults. Still the student loan system is broken in the USA “LAND OF DREAMS”.