When we started to do this article, we were just going to report on the fact that students, our youth, our future, are in debt over a trillion dollars out of the gate. However, as we started putting together all of the facts it became apparent that there was something far more sinister afoot. Slowly the realization began to form that this situation was something that was engineered to assure that the labor of our youth would be mostly for the benefit of banksters. Harsh words? Another wacko conspiracy theory? We will let you the reader decide, but we think not and here are the facts as they are.
According to recent figures from the National Bureau of Statistics, there is only one job vacancy for every five college graduate applicants in America today. In the last 15 years, college tuition in the US has risen a staggering 900%, while wages have risen an impressive average of 10%. And with most jobs in the US being off-shored to the Far East and Latin America, it’s a safe bet that stat is not changing anytime soon, at least for the next 10 years, unless of course you are going for a position under the Golden Arches.
Regardless of how bleak the outlook is, America has always been the land of positive thinking and no wonder, as there is no shortage in the queue of 17 year old youth dying to (literally) sign their life away to JP Morgan, Citi Bank and Wells Fargo in exchange for in many cases, around $80,000 in student loans.
Before we rush to judgment, let’s be fair and breakdown what the kids are getting for their 80K. First and foremost, they get that golden fleece, the sheep skin also known as The Degree. The overall average starting salary for Class of 2013 new college graduates currently stands at $45,327, an increase of 2.4 percent over the reported average of $44,259 for Class of 2012 graduates, according to the September 2013 Salary Survey. Here’s the irony of this, according to the Social Security Administration the national average wage index for 2012 is 44,321.67. So according to these numbers, a college degree does not mean better wages.
But here is the really bad news. Unemployment for students with new Bachelor’s degrees is an unacceptable 8.9 percent, but it’s a catastrophic 22.9 percent for job seekers with a recent high school diploma—and an almost unthinkable 31.5 percent for recent high school dropouts.
So if this is truly a market driven economy, how can tuitions be rising by 900%? This is where the whole engineering part starts to take shape. Step by step, this was how it was deliberately engineered by the banksters.
Step One- Get the government to back student loans. By making the government the co-signer and the capital being used is government supplied money, the banksters simple rake in the profits for churning debt.
Step Two- Get the government to pass a law that student debt cannot be discharged in bankruptcy. This insures the banksters a never ending source of compound interest and penalties infinitely.
Step Three – do not allow low interest rates to prevail. Get the government to pass a law tying student loan interest rates to the 10 Treasury Index.
Step Four- Since student loans were made available to everyone because of government backing, colleges and universities could raise tuition and fees without regulation. This, the banksters also encouraged because the higher the tuition, the higher the individual debt load which translates to high interest and fees.
As of July 1, 2013, Stafford loan interest rates will be variable, but unlike other loans with variable rates, these Stafford loans will have a locked in rate for the life of the loan. On July 1 of each year, undergraduate subsidized and unsubsidized Stafford loans will have an interest rate of the 10-year Treasury index rate plus 2.05%. Graduate unsubsidized Stafford loans will have an interest rate of the 10-year Treasury index rate plus 3.6%. The ten year treasury index currently floats around 3.5%. This means rates of 5 to 7% will be typical. However, again here is a trap. If students consolidate those loans, the interest rates are capped at 8.5%.
So given a typical debt load of $80,000 per student and a typical 20 year repayment schedule, and $1 Trillion in the float, banksters are ripping out $5.5 Trillion in interest! Here is the irony, it is all done without risking any private banking dollars.
So now you decide. Are our children doomed to economic slavery? While you are deciding this, think about what the alternatives could be. We could have state and locally owned banks, backed by our government that could offer student loans at 1% interest. We could have government regulations that capped tuition increases at state and private schools that were tied to the CPI. We could have a minimum wage at $10.50 per hour to create a livable wage. We could have $5.5 trillion more being pumped into our economy creating job opportunities for our college graduates.
When is enough-enough?