Not one of the more “elite” or ivy league schools, Cal-State University is still one of the more reputable schools in the United States. What few people realize is that underneath the disguise as one of the most reputable schools in the country, there growing crisis. A new study has been released revealing that “8 to 12 percent of Cal State’s 460,000 students are homeless, while 21 to 24 percent lack consistent food sources.”
A stunning number to anyone but it does speak to how the American college student is being screwed over by the system. This system being the banking institutions of the United States. The more money a bank loans out, the more money they theoretically make. The higher the interest rate and the longer duration it takes you to pay back the full amount, the more money overall you will pay back to the bank over time.
We live in a society where a college degree in 2016 has become the equivalent of a high school diploma in the 1970’s. Only instead of being free, like public education, a college degree costs tens of thousands of dollars in 2016. In some estimations, the cost of secondary education in America has risen approximately 559% since 1985.
As a result, the average student graduates with over $37,000 in debt – some with over $100,000. As it stands for the job market, the scenarios do not improve. The “job rate” under Obama has literally been redefined/recalculated since the times of Bush to reflect a move positive number. But, with that said, the job rates specifically within the demographic of recent college graduates fluctuates between 26-33%
Go to school to find a job so you can work to pay for school. It’s a great marriage isn’t it? The banking institutions and American universities – they have the perfect set up. Everyone in society believes that to excel in life, to succeed, you must attend college. As a result, many people who otherwise shouldn’t, blindly sign up for loans to go to school and banks blindly sign the contract – the more contracts they issue, the more money they can make.
The system is not broken, it was built this way.
But banks have suffered in the past for this business practice. Remember the bail out of 2009? Bank of America for example, one of the largest student loan signers in history, lent out so many loans that were later defaulted on that they literally bankrupted themselves. Other companies, such as Goldman-Sachs, bankrupted themselves for the same business practices, only in different in different markets.
Then all was made right and the companies were able to operate business as usual thanks to the Federal Bailouts – thanks Obama. All the companies that would later be found guilty in court of “financial fraud” years later for in immoral, such as Bank of America and Goldman-Sachs, were pardoned by the United States government. Showing you just how intertwined our business and political worlds really are.
Debt and America, like two peas in a pod, go hand in hand. Today, the average American has over $7,000 each in credit card debt. The average homeowner owes about $164,000 to banks on their mortgages. According to the polls, over 80% of Americans admit they are burdened by some form of debt, and over 70% of those same people said they could not afford their lifestyle without the active use of debt.
It is estimated that each month, 43% of all households in America spend more money then they make. Approximately 41% of all Americans either have an active medical expense, or hold medical bill debts. Additionally, as of 2014 there are 1.17 million foreclosed homes in America. Disheartening considering that Amnesty International and others cite that almost 3.5 million Americans will battle homelessness each year.
All the while our elected officials serving in Washington have a debt 19.2 Trillion Dollars of their own. Not such a fun fact of the day, the United States government has spent more money than it owns on every budget dating back to 2002.
The situation at the University of California is a tragic reminder of the failures of our education and economic system. 8-12% of young people should be loaded up with so much debt they become homeless and 26-33% of young educated Americans should be out of work. Such a shame
Sources: National Center for Education Statistics, The California State University, The Federal Reserve
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