Many say student loans are worth it because in the end, one receives an education and is able to acquire a job to pay off the loans. However, according to a recent Forbes article, paying off student loans may not be so simple. A recent study reveals higher education has turned into a giant pyramid scheme. The study characterizes the student loan industry as predatory and blames unfettered capitalism for this problem and believes for-profit colleges are particularly problematic when it comes to predatory lending.
A higher education racket share’s similar characteristics in that they’re making people take on debt and pay out of pocket for the school’s financial benefit without actually giving people what they want out of an education, which is a track to a career. But it isn’t a multi-level tiered system where people on top take advantage of people below them, there’s just the university and then the students.
All the blame is not on the education system, after all it’s many of the students who taken on educational pursuits that lead to dead ends and it’s not entirely the fault of the university. Lots of students go straight from high school to college without an idea of what the working world requires of them as far as skills and education requirements. In school people didn’t really have goals of what they wanted to be and just ended up taking various courses in what interested them, then by junior year they’d just fast track to the quickest or easiest degree possible without any thought to the consequence of what career (or lack thereof) that education might lead to.
Schools are also cheating students out of the job in other ways. Undergraduate students, graduate students, and doctoral students end up paying to go to school to do research, and the school in turn gets the intellectual property procurement and hands it off to the companies that made the donation in the first place. So in the end the company doesn’t need to hire staff for research and development because students will pay to go to school and do the research for free (well, at their own expense), and in the end the company gets the goods, and they don’t have to pay a cent and get donation tax breaks and are free of the cost of hiring R&D staff, and in the end the student doesn’t have a job because they’ve been outsourced to universities, then they have all that debt on them which is a problem.
With this mega-mess, Unfettered capitalism is to blame. It’s big, it’ll be very messy and, like it or not, it’s going to require another bailout. It’s just another big lie sold by the media and the financial industry that we all bought hook, line and sinker.