Should student debt be erased?
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- Опубликовано: 12 июн 2019
- Senator Elizabeth Warren has a plan to reduce the $1.5 trillion Americans owe in student loan debt. It’s a bold, expensive proposal from the 2020 presidential contender that could jump start the economy and close the racial wealth gap. Yet, the lion’s share of the benefit would go to wealthy Americans. Lou examines the fairness of Warren’s plan.
SOURCES & FURTHER READING
Warren Medium post on proposal
/ im-calling-for-somethi...
Shapiro & Charron-Chénier’s analysis of proposal
elizabethwarren.com/wp-conten...
Urban Institute’s analysis of proposal
www.urban.org/urban-wire/who-...
Brookings Institute’s analysis of proposal
www.brookings.edu/blog/up-fro...
McCluskey’s criticism of Warren’s plan
www.cato.org/publications/com...
Ruetschlin’s paper on macroeconomic effects of student debt cancellation
www.levyinstitute.org/pubs/rpr...
Akers opinion piece on Warren’s plan
www.nydailynews.com/opinion/n...
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Writer: Louis Foglia
Editor: Page Ellerson
Researcher: Dushyant Naresh
Supervising Producer: Allison Brown
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Btw - this is sort of a companion piece to our earlier video on why college is so damn expensive: ruclips.net/video/3GCL9cj93BA/видео.html
love this topic, great work as always ~ like you guys experimenting with the backdrops and colors now
Nothing was mentioned about the compound interest on student loans. People would pay if the interest was removed and tuition was capped and not paying over 30k per year for an education.
Note Top secret but so true... try “Kalamazoo Promise “ scholarship initiative. Can pay 💯 % potentially, even for foreigners. Also covers private universities too. Michigan USA
Louis Foglia would you be interested in a debate
Reduce the requirement of a college degree because the majority of degrees aren't worth the paper they are written on. Kids paying $120k for a marketing degree is horrendous. Social workers paying $120k to earn 25k is mindblowing. It isn't the student debt it's then institutions charging that absurd amount. Another vicious circle is that people become students forever in order to not have to start paying on their loans so they keep on borrowing.
Do you know how we solve this in civilised countries? There is a mandatory maximum tuition fee, it's $2300 per year.
These rich college kids choose to take those loans out. Only 30% of Americans have a bachelors or greater. Most of them come from high end and middle class families. Why should we pay for these adults who come from well off backgrounds when many of us are struggling to make ends meet. Also wouldn’t that cause inflation?
erikpoephoofd Price controls?
@@joseaguirre744 or you could do the european way, have 95% of all universities public so that there is only a symbolic payment of 500-1000€
This is a bailout for Big University, absolutely regressive.
The government just has to stop guaranteeing student loan debt. Problem would be solved instantly!
Loan amounts and approval should be based on the degree being purchased. Because all degrees don't provide the same return, and there's historical data to prove it. It's a fact. Second: Why is my tuition being used to pay for a racket ball stadium I'll never play, not even interested? Tuition is way overpriced.
@@barneystn7521 yup , also there should be a heavy look on wht public schools have crazy fees.
This, yes. If you can't walk into a bank to get a traditional loan, no loan for you. Higher education institutions would be screaming mad if that happened. Most of the warm bodies on campus would vanish overnight. Tuition would have to plummet out of the inflation bubble that higher education's big fat scam created for itself. The entire way that colleges fund themselves through this epic predatory lending scheme is as fishy as that credit default swap nonsense that tipped the world into the great recession back in 2008. Look at either situation, and compare.
Those that cannot afford to pay up front for college, or cannot obtain conventional loans should not go to college unless the student can obtain grants or scholarships. This lending scheme (a scam that would make Bernie Madoff proud), is an unethical predatory lending scam that traps people into poverty. Such enormous debt ripples though the economy as spending drops among multiple essential industries, except higher education. These people cannot buy anything else, as you see higher education growing to burst at the seams.
It's a well orchestrated predatory lending scheme that needs to burst its bubble. They've tailored the laws in their favor. Fact is that the schools have no skin in this game. They're all about short term thinking to push growth. It's easy money for the schools all carried by each financially illiterate student that fell for the debt trap. Really, what average freshman has any life experience beyond the bank of mom and dad to understand this financial game? That same average freshman has no income, nor assets to qualify for any traditional bank loan whatsoever. Yet, the scamming education loan sharks bait these naive students with false hopes as each one signs their life away. You tell me, is that ethical in the 21st century? Will this sort of system bite everyone in the ass? Likely.
Hmmm, seems unethical to anybody except those directly benefiting from this money scheme.
Student loan debt is another banker scam just like housing debt. They inflate the cost of EVERYTHING so people have no choice but to borrow to get what they need. Buy some Bitcoin or Gold now. You can wipe out ALL your debts when the dollar finally hyper-inflates into nothing.
Yes! Place limits on how much can be borrowed.
Your degree cost more than the job you MIGHT GET. America is cool
Good thing my degree is worthless.
Only if you’re an idiot. Get a stem degree from a state school. Problem solved.
@@kevinrushing5667 "STEM degrees" are largely a sham. Most STEM degrees aren't worth much. The only ones that are are computer science, IT, engineering, and maybe math and statistics. Even those degrees don't really guarantee a job anymore and many IT/programming jobs have gone overseas.
David VR that is so laughably untrue, I don’t even have a response for you.
David VR it is not mostly a sham. Sure some people don’t get placed, but I hate two stem degrees and Both my degrees have 100% job placement for the last 2 decades. I have tons of engineer friends and every single one of them had a job before they graduated. IT has a massive presence in Dallas where I live. Possibly one of the largest industries here.
Come to Europe, you pay less get the same education. In a few countries, you do not even pay to study at university.
No. The way Europe pays for it is staggeringly high tax rates unless you go to a private school then you pay anyway
Walt Lonsdale what you call high taxes ?
Isn't Europe going through a refugee crisis?
I heard places like Paris and London are not what it used to be.
greentealatte yeah that’s what happens when you open borders something we should learn from them. High crimes rape terrorism etc
European highly subsidized public educational system work because it has higher taxes and lower population, which is more manageable than the US but in the long term the government is so saddled with public debts for that comfortable welfare that it won't be sustainable unless taxes are increase on the level of Nordic countries, around 60% and that will get people nuts.
Didn't we use public money to bail out banks ? They wont forgive loans because that's a workforce they want to keep down .
lol, many have forgotten that huge bank welfare handout thingy.
$610 billion is nothing compared to the $1 trillion we just gave away to the top 10% in income tax rebates!
Letting people keep the money they earned is a "give away"? Did you just roll in from the USSR or something?
$610 billion is also nothing compared to the true cost. Warren's figures are a lie. That $1.5 trillion in debt is what 20% of student borrowers racked up in 4 years. Extrapolating that, 100% of student borrowers blew through $7.5 trillion. Over ten years, that cost would be $18 - $20 trillion. $610 billion is a joke, especially when you consider how many more people would go to college if it were free. This is how those rotten politicians work: first, you get the camel's nose in the tent.
Gave far more Ds and Fs than I ever expected to kids that didn't even try and should probably not be in school. Free tuition means that they will just hang out in school.
Best comment ever here.
Only in America can it be seen as economically prudent to bail out major banks with public money because they're "too big to let fail" but considered bad and regressive to bail out crushing students loan debt that shouldn't have existed in the first place
I think the bank bail outs were unfair. You can criticize both.
lets first stop letting the fed give out loans. If this stopped, tuition cost would drop. do that first, that is the main problem.
The amount of loans and grants the fed gives out has dropped significantly in the last several decades, but some how the cost of an education has increased. It's almost like the free market did not provide 🤔
wouldn't the college loan also make degrees worth less which further assists the rich people who already got great degrees that are universally in demand.
riley dalisa exactly.
Instead of paying everyone's debt, how about making college less expensive in the first place?
RemX405 that’s just a bandage.
@@InfernoBlade64 So what's the cure?
why not both?
@@InfernoBlade64 no that's the cure. Remove federally insured loans, and that tuition will drop because very little would be able to afford it.
But those who just paid off all their student debt must be jealous af
Lol, I paid my own school loan, good luck paying of urs
I'm glad that you brought up people who have been working to pay for school. I'm a part-time student and having paying for college as I go, I'm 22 at the moment and only have a couple more classes left to go. It's kind of unfortunate that student loan forgiveness has come up after I'm close to graduation and with no student debt. I've missed out on a lot of things like you said Spring breaks and living in dorms and making friends. However, I am okay with the student debt forgiveness for others I feel that taking my time to graduate with no student debt was a smart thing, I'm saving for a house now when my friends or classmates I graduated with have a ton of debt. If everyone started out being able to save for a home and not be strapped with debt then I think it would be a good thing for the country.
How much was your yearly payment? No amount of work part-time could pay my bill. Not everyone with debt is lazy.
@@jackpage5895 What do you mean by yearly payment? I take about 8-9 classes a year and they cost about 1100 a class.
I was in a similar boat. Not sure if it will help you, but I like to remind myself that I will be better off in life if I don’t rely on bailouts from others. In addition, if student debt cancelations go through then many people it helps would are less fortunate than I was. This is a difficult problem to solve for sure.
@@imkbar do you go to school I'm america?
@@jackpage5895 yes I do.
These are predatory loans. 17 and 18 year olds are not mature enough or financially educated enough to have a real idea of what they are getting into. These debts are actually the worst kind of debt because you cant even file for bankruptcy like you can for any other debt. Public colleges should be free or very low cost. Higher education should be about education, not about making huge profits for banks and colleges on the backs of students.
I had two jobs in college, still had loans, but buckled down and paid it back. I’d be pissed if my hard work was for nothing, while all the party students who used loans to live in luxury apartments got a free ride as well.
Naw g your personal perspective is fine but that's not everyone else's experience.its bigger than that.
That's just selfish. Your experience isn't everyone else's.
Duce Duce Just because a bunch of lazy fools racked up more loans than they could pay back, America should bail them out? My tax money should go to enrich their careless idiot lives? Yeh, I’m selfish jerk. I should be a better person and start mailing my bank account number to my neighbors.
@@duce392 are you hearing yourself? People that go to college and live off the loans, expecting them to be forgiven, are selfish. Not people that did their due diligence.
Public Funds to pay like Private commitment is bad?... Oh you mean like 4.2 trillion paid out for the bank bail outs in 2008 with an additional 14.6 trillion still to be paid out over the next 15 years? Oh yeah sure Public funds to pay Private debt is bad....unless its to help out the people who issued that predatory debt in the first place.. Got it.
I think the bank bail outs were also deeply unfair. You can criticize both.
The bail out money was paid back with interest. Gov't made $$$.
so, you're saying the bank bailouts were good?
@@MichielVanKets the sarcasm is lost on you friend
You can’t just fail the banks people have money in there. How are they suppose to get their money if the bank is closed?
Problem is, loan forgiveness perversely punishes those who worked hard and went to perhaps lesser schools on scholarship or while working long hours. For example, someone who went to community college instead of an expensive 4 year liberal arts school due to $ constraints and a dislike of loans.
Free public colleges on the other hand is an awesome idea. Let those who can get in have an affordable education - frugality and a job should pay for an apartment (with roommate(s)) and food.
Except free public colleges also "punish" those who worked hard to pay for higher education.
Debt is big business, just another exploitation of essential life service, ie health care, school, housing, you've got to tackle the corruption
Facts but more big bank which is big government or controls are government how did nobody like your comment.
You guys need to say that it's lou in the thumbnail. This is the best show you guys have.
problem with this is that it incentivizes being irresponsible at a personal level for each individual. people should be responsible for taking out those loans fully aware that there is no guarantee of a college degree or well paying job. i think there should be a debt forgiveness program like going bankrupt but forgiving without some kind of cost is stupid. i graduated 2 years ago at a community college without having to take on a loan. i paid everything myself. now i have a well paying job that pays WAY more than people i know who have a 4 year degree and 30k in debt. i blame the education system for this cause they make it seem as though college is the ONLY option or you'll be poor which is absurd.
can I ask what your job is?
@@Michelrs it's website development
@ChrisClarkPlays and you're absolutely correct about that. that's also a huge factor as well. If you consider someone who was kept being told that college = success and money by ignorant adult figures on top of college marketing schemes that nitpick statistics to make it seem as though it was fact, you get ignorant students that think college will guarantee wealth and stability.
JadendayZero yeah....screw all those “irresponsible” people who had the audacity to try and....go to college. DEFINITELY don’t want to encourage that. 😐
Btw, I agree that we should encourage people to think of community colleges and trade schools as legitimate options, but the idea that the your educational aptitude should depend on how much money you have is just elitist imo.
@@SerferTJ sending you to college would be a complete waste of money, that's for sure
Hooooooly crap. The video looks CRISP.
Side note: I really really want a BEME sticker. How can I make this happen??
Amazon
Make one ☝️
@@claydog6422 B-b-b-but that's not free! That takes work! The *government* should give me one! Or ten!
tHIS IS all YOU IDIOT COMMENTERS HAVE TO SAY?
College should be free. We should heavily invest in trade schools as well. I didn’t need a college degree to become an accountant, but I was forced to get one. Was I ready for my first job? No, they still had to train me....
Yo that is a terrible idea. High schools are free for the most part so why is there such thing as private schools and charter schools etc.? Look at high schools in the south compared to schools in the north... They are free but is the quality great? Fuk no
High schools are paid for with federal grants and property taxes.
They're not free.
damien hansmith Education should be free... not degrees.
Vien LaCrose smh they're essentially free for students
Evan Erickson free in one city for all.. Top secret but so true... try “Kalamazoo Promise “ scholarship initiative. Can pay 💯 % potentially, even for foreigners. Also covers private universities too. Michigan USA
I know people who decided while in school that they weren't paying back their student loans; then there are those who work full-time but keep deferring, deferring, deferring; then there are those leaving the country to escape repayment. I will NEVER support this.
Thank you for the great info. I didn't know any of the details of her plan until now. It is important to acknowledge, however, that student debt is not solely a personal commitment. Yes the individual will likely benefit financially, but they also have more money and skills to contribute to the overall economic system. Society benefits when people are more educated.
Most graduates never use their degrees at work or in life.
Education doesn't have to come from centralized institutions. It can also come from good parenting and responsible communities. It is crazy to think you can raise good kids by throwing tens of thousands of dollars of borrowed money at strangers and expect society to become a better place.
Do we educate young people in order for them to get rich, or for all of us to benefit from a more educated society? If the former, they can pay. If the latter, we should share the costs.
It’s dealing with the symptoms not the problem. The problem is universities are overcharging Americans.
Black people dont need more money and free college, they need to have a family core, be safe from gangs and drugs, and a better relationship with police.
Yea and healthier food consumption.
Buying votes explained.
Money from War should go there...
Wilmohur we would probably be speak german or Chinese with a socialist government. Don't say crap if you're clearly enjoying the benefits of war.
No. Taking on a college education is a personal endeavor. Yes, you might have been pushed or influenced by your counselors, parents, media, and peer pressure, but it is an individual undertaking. True, your eyes and minds may have opened up to different viewpoints and different subject matters, however the cost is yours and yours alone. If student debt was completely wiped out, then personal responsibility goes with it, and you'll never learn about the consequences of your actions because you're so focus on the immediate relief. If you need an entity to come in to save you from your hardship even after turning 18, which you're considered an adult, then you never really grew up. Much more poignant is that you can't call yourself educated or enlightened despite having a 4 year college education if you are dimmed to believe that the Government should pay for your education without realizing that a price must be paid
Thank you so much for this! I like that you clarify good debt vs bad debt. I worked my ass off to pay off my undergrad loan but I was also responsible with how much I took out (only to cover tuition, fees, books, and rent -my on campus job really only covered my food). But point is student can be a good thing, an investment if used responsibly. But telling that to a financially illiterate 18 year old who feels pressured to go to college is crazy which is why I think in high school, juniors and seniors should be required to take personal finance courses so they understand how loans and taxes work. I also think that not all degrees should require 4 years. I'm a marketing professional and I was in my program only 2/4 years. But the first 2 years where I had to take core classes was a joke. Core classes are repeats of what you took in high school FML.
honestly, the argument that student loan forgiveness is"unfair" for people who already managed to pay off their debts is honestly one of the most ridiculous. whats next people who got the flu before flu shots saying people shouldnt be allowed flu shots because 'others survived just fine'. There are so many careers that have costly degrees and low turn outs but are important. For example if someone wants to become a University professor. On top of the bachelors + masters + doctorate degree fees, universities in America are famous for intentionally not hiring professors full time. And adjuncts are forced to work multiple jobs just to survive. My political science teacher (adjunct) who is the director of the nearby polling center for our state is in her mid-30s and STILL in debt.
I myself never went out to party, went to school in-state and lived with my family, worked every night for the last few years and paid off loans even while in school while somehow graduating with a 3.9 (meaning i put effort into both work AND school ) and even though I will be working a full-time foreign Government position, I won't be able to pay off my loans until 2035. My only "financial splurge" was perhaps studying abroad but funnily enough tuition there was cheaper and I only needed to pay extra for the plane ticket but this was required for the job I now have so if I didn't I would most likely be unemployed.
tl;dr Don't rip up a 50,000$ check just because your name isn't on it. There are people who need it.
1. Wouldn't be fair for those who didn't go to college to pay for someone's college degree (who makes much more then them because of it).
2. What's the point of erasing the debt if you're going to continue giving out student loans through the same process. Wouldn't the same thing happen, only worse now that people know it can be wiped clean.
Woaw - Nice colors this episode!
New camera, new studio!
If u don’t want to pay your student loans
Don’t sign the loan application
well said lmao nothing in life is free
damien hansmith my 18yr old daughter asked me if I would help her with her college tuition. I said on one condition
No student loans. She said deal.
Now she has a masters degree and no debt. Getting student loans is just stupid. Unless u are going to be a doctor or lawyer in a year or so.
r/wowthanksimcured !
@@PInk77W1 She was fortunate to have a responsible parent that realized it's wise to invest in their offspring's education. The rest of the world isn't so lucky. You're really just bragging. Despite being correct about student loans being an absolute stupid scam, hmmm, you really don't know squat about medical or law school, so don't throw out trite nonsense like that. It's as bad as telling everyone to go to college. Totally missing the fine print. Do you realize that medical school is a nightmare of loans. Truth be told, there are far better ways to make money than becoming a physician or a lawyer. There are unemployed medical grads. Residency programs are intensely competitive. As for law schools, it is a tiered system, and yes there are under-employed/unemployed law school grads working silly Uber jobs while trying to cover their painfully massive loan debt.
You're an awesome parent for actually advising your daughter + funding her future. You gave her an edge. Finally, one responsible parent out there! Now what about all those poor kids that have shitty underfunded parents? What do they do about college? Oh, didn't consider them, did you? FAFSA typically does not cover these students with full ride grants but they surely open their doors to every warm bodied applicant that wants to fill a seat. The scamming money grubbing schools utilize loans as "financial aid" and if your daughter wanted to do it, she could have got those loans. Yikes, right? That shouldn't be possible, imo.
Just spelling out some details that you completely missed in your post. For goodness' sake, you missed details. Yeah, details. The devil is in the details. Try to extend your advice about about the stupidity of getting rigged loans to include medical and law school too.
*** just to make note of it --> if a student is heading to school with a huge endowment fund like Harvard, that's one school that does cover all expenses for students that meet financial criteria needing full aid. Most schools don't do this. That's just one exception, in case anyone curiously reads this as I waste my time blabbing it all out in this long comment.
Bonnie Hundley I said it’s stupid to get student loans. I’m trying to help those kids who have bad parents. I can’t save the world. This is a comment section on RUclips, you were expecting a white paper ?
I’m pretty sure there are many kids who go to law school who do great.
I’m a high school drop out.
No one gave me the time of day let alone financial help. I joined the marines and they, well nevermind.
After the Marines I climbed trees for a living for 30yrs. Almost got killed many times. Again, no one was worried about me. What I’m trying to say is it’s up to each and every individual to do what’s best for him/her. I just happen to think loans are a bad idea.
I don’t own a car. I’m buying a house cash. I just march to the beat of a different drummer.
The Bible says
“The borrower is the slave of the lender.”
But we all know the Bible is fake.
Can you erase my mortgage while you’re at it? Apparently we should not be accountable for our debts. Politicians also have to take responsibility. They made it so easy to own America companies no longer worry about educating their employees. And it still doesn’t solve the root cause of the problem. It masks it.
Wealthier people also get less aid for college. So their payments are either family or their own debt. In my case my dad made a LOT .... so I couldn’t qualify for aid.... but he also didn’t pay for me. So I had to get my entire tuition in debt.
And I worked my ass off to pay it off. I’m NOT ok with feds just paying it off for young folks now
This is a really well researched video. Nice work Beme!
Before I watched this I thought I would disagree, but I totally agree. And I would add most colleges cost way too much. That is the bigger problem behind the student debt problem. The government tried to make college more affordable by making credit easy and then making debt irrevocable, but increasing demand has only made the price problem worse. Laying these inflated prices on taxpayers now like it's their fault doesn't make sense. Colleges should reduce costs. Competing for piles of loan money that feels like free money to its young recipients has made colleges waste piles of money on everything except the only things that should matter faculty, research, graduation rates and career outcomes.
The state should still increase funding for higher education especially for specific purposes like scientific research and reducing medical costs by not making medical students go in deep debt for education, but considering the details of Warren's proposals more carefully shows her ideas are bad populism for people who don't understand what they want beyond blaming the rich for wealth inequality. People should realize Warren's plans might sound good, but they would be hurting themselves. She seems like a fake progressive running to divide the support for the better progressive candidates. If someone couldn't figure that out from considering her proposals, they could see it from the way the media adores her while they attack or ignore the real progressive candidates.
I just think the terms of the loan need to be different. The way the interest compounds is usury. I think it would be fair if the interest was at a flat rate.
Why erase the debt? Why not just eliminate the interest on their student loans so they can make some actual headway in paying back the loan? They earned the degree why shouldn’t they be responsible for paying for it? I have yet to hear one person suggest eliminating the interest. It would be far more fair to the tax payers.
Thanos will Erase 50% of our debt? THANOS FOR PRESIDENT!!!
The issue is that paying off the national student loan debt with public dollars is like treating the symptoms instead of the root cause. Here are some of the causes.
US loan culture
Colleges know they can charge more
The necessity for a degree that doesn’t really require a degree
Bloated college administration
Want to pay everyones debt? Great. But make sure you take care of the underlining problems first. Otherwise the next graduating class will have the same issuesq
Excelent answer. I would add one more problem. There is a culture of moving out when you study in the US. Even if people have an apropiate college nearby they search move to somewhere further. That is extremely inefficient, as you have to pay for a place to live. Also, families can be a good support in difficult times during college and that can help a lot to improve graduation rates.
I wonder what the breakdown by major is. What percentage of STEM vs history majors are drowning in debt they're unable to pay back. If a college education is an investment, then perhaps these universities should be sued for not doing what's in their students best interests. They instead sold them bad investments without adequately explaining the financial risks.
Agreed. There are some degree that have a grim chance for substantial return on investment. That doesn't mean they shouldn't be pursued, but schools can do a better job explaining the path forward.
I've been told *"experience is much better than a degree"* for so many years by the older generation...after they also told me I need to go to college. But after 7 years working as a 3D CAD designer and even getting an associates degree just to get some type of on-paper education, I can't even get a measly call back from a job application to at least say that they aren't considering me for the position. They just simply discard your application if you don't at least have a BACHELORS degree. Then they wonder why we outsource all of our design work to China. If I need a bachelors degree to be considered for a position that I was already able to do with my limited experience out of high school, I'm going to demand a lot more money to pay back that degree you made me get. Yet, people in China will do the same work for pennies on the dollar because they don't have such a large barrier to entry in the job market.
I'm an architect , and we really dont make that much money to begin with until you hit 5 years of work experience and with a license . Starting salary after graduation is 45k , at 5 hears its around 70k. 10+ years is when yourj barely hit 100k if your lucky .
For 5 years of study , 2 maybe 3 years of work experience before you can take license exam and another year to complete license. Pay does not equal the time. A recent MBA worh no work experience will get more money if he want straight through school then an 7 year architect .
If you don't like how much money you make why did you become an architect instead of a MBA?
I would make two suggestions. Number one, eliminate the usurious aspect: no more interest. What you owe, is what you owe.
Number two, change the bankruptcy laws so these kids can do what homeowners end credit card addicts do when they get in over their head.
You won't hear any of the candidates talkin about these options, because their primary concern is the banks getting paid, so they want the government to assume the debts on all our behalfs.
You bail them out! You give me that same amount of money because i did not go to school. Be fairer to everyone. Thank you politicians.
even ancient romans figured out that a huge amount of population with debt is very bad for the economy and people overall, and they just erased it
Just give everybody $1000 more simple
#yanggang
and so freely welcome inflation? nope
We live in strange times where people are openly inviting hyper-inflation.
It would circulate around and better the economy.
How about get rid of junior and senior year which are mostly bullshitting and have kids learn about finance and career building and then do two years of college in a specific area for a bachelors degree.
Good to see you today Lou!!! :)
I think that last point is really what is at the heart of the problem of increasing student debt in America.
Many jobs do not, at least initially, require a college degree, especially at the current average amount of tuition one has to pay as well as the average income of many Americans. The federal government, and even more the States themselves, should look at and start to invest in other programs, such as apprenticeships.
With apprenticeships companies could train their own professionals, and potentially even have a way higher retention rate of young workers. Start at the end of high school, attend a trade school for a day or two a week while also being employed as an apprentice at a company for a small salary. Do that for 3-4 years with an increasing salary and get a diploma, which then should allow exam-free entrance into Universities/Colleges of Applied Sciences, with potential small entrance exams to attend a normal college/university, to get a bachelor's degree if one wants one.
I am certain a system like that would help to lessen the burden of student loan debt on many young Americans, especially those from low income households.
@BEME News, please make a video on apprenticeships, and maybe take countries like Switzerland or Germany as an example!
Good piece, but you didn’t mention how if Uncle Sam (the taxpayers) are footing the bill, then colleges will raise their prices because the students can “afford more.” Before no time we’ll be right back where we started. People have a responsibility to understand the debt they are getting in and pay them self. (I’m a college student who works hard and I pay my own tuition. It can be done.)
Good point. Universities "capture" a lot of student loans and grants by raising the price.
Easy answer. No. I am a college student myself, who is fortunate enough to only have to take a few thousand out due to smart choices on my part. My sister got out debt free. My brothers both less than ten thousand. If you are financially smart, you can get out with little debt. Besides, a private loan is not a public issue. What you do should hold no bearing to what I do. I don't believe in fixing the mistakes of strangers. Family? Yes. Randoms on the street? No.
Make college more affordable!
A healthy tax increase on the billionaires would settle the debt. They don't need all that money anyway!
Short answer - no - but mostly b/c I'm not getting a refund for actually having paid my loans off.
I think this is a well done video although I'm not sure that social security benefits are a good analogy to college debt forgiveness since workers pay into social security in order to receive benefits whereas the people who were responsible and were able to complete college with little or no debt because of the sacrifices they made are getting punished for being responsible.
One of the best solutions I've seen to eliminate or reduce the problem is to put the universities on the hook for at least some portion of the students debts. If they had some skin in the game then they would be more likely to reduce costs or at least reduce the total debt of the students since if they aren't paid back later then they lose money.
Australian here, The system we have in Australia is one where you still get a student loan but that loan is through the government and has 0 interest, as well you do not have to pay any of it back until you are earning over a certain amount and then they ake a small % of your salary. additionally, i think our tuition is less than the U.S also. i feel as if this system is a healthy compromise. : )
see so your paying for it
@@damianhansen1271 yes but we also don't have to put up with the burden of hefty private loans with interest rates.
Make universities guarantee a job in your field of study within a year after graduation or a full refund. Then you will see accountability and prompt change
Solve the problem with how the finance system works first, maybe make it like the UK system if you don't want to make it free?
Then move people over to the new system.
Don't just go eliminating everybodies debt.
Federal reserve bought junk assets from the banks. US federal govt should buy junk assets (student loans) off students credit history. Which they did in 2010. Except the federal govt uses private sector debt collectors to harass defaulted loans. Federal govt should just write off those loans. It's a net add to the economy.
Make tuition free and only have mandatory fees like european countries do. It's a societal investment not a personal one. Everything else is crabs-in-a-bucket syndrome.
Europe gets away with it by picking who can and can't go to college. In the US that means minoritues hardly go and racism is cried out. Standardized test scores would show you why we can't do a European model
Well delivered and presented as always. Thanks
Top secret but so true... try “Kalamazoo Promise “ scholarship initiative. Can pay 💯 % potentially, even for foreigners. Also covers private universities too. Michigan USA
In New York, if you make $100,000/year, you have to pay $33,000 in tax. Yet, all these politicians want to do is increase that tax.
For rich people
And if you cant live off 67k do you eat gold flakes for breakfast
@@topman8565 New York City...
Yea in Va I get taxed 30% off top as well. Its crazy.I think 10% is enough.
What a terrible idea. Gov should stay out of everything
@Full Tilt Boogie Exactly, family court causes more harm then good!
Great informative video
GOVERNMENT CAUSED THE PROBLEM, GOVERNMENT IS NOT THE SOLUTION. not by charging 50 bps on market transactions. The government should never have incentivized such irresponsible decision making. Many degrees for many graduates aren't worth the paper they are printed on.
What about student loan for tech schools
You can't erase it. Not enough money you can tax to do that.
You borrow money you pay it back.
You can't afford something you save up for it or don't get it.
Don't live beyond your means or you will be broke forever.
Very nuanced 👍
Yes!
Lighting was sound. (Haa)
It's nice and all, but why is college so expensive in the first place?
because it was backed by government student loans.
Also higher demand means higher prices, they are just trying to make money
80% of women in high school want to go to college so why not profit as much as possible with that kind of demand? I would
Cause corporate decided this was cheaper than training new hires and retaining experienced talent.
In Asia especially the northern countries and also including Singapore, they do better In schools with higher scores in PISA than western counterparts, with almost zero student loans. It is the responsibility of the parents to pay for the tuitions and parents chooses what is best for their children not the government. Later in life the children are the ones taking care of their parents when they get old, kind of payback and it works.
Government intervention in providing tuition fundings distort the "market" and high tuitions is the long term result. Now the hole is dug so deep it would be difficult to get out of it and student debt forgiveness would be unfair to those who faithfully paid their own and practically would destroy the educational system as every student won't go to college unless it's free.
Live your damn life LOU. ALSO DON'T PAY OFF THE DEBTS. We need to create an economic collapse and show the future why expensive education was such a bad idea.
steven song I'll start learning Chinese in the meantime since that'll lead to China ruling the world
All these debt problems are the problems of the people in debt! No more bullshit!! If you can’t afford it, don’t do it!
This show is 1000000000000x better than Last Week Tonight. It's a shame it's no longer uploading.
Lawyers are hurting and a lot of law graduates cannot find jobs.
As someone who got that fancy degree, I can tell you right now, it doesn't ALWAYS HELP US. Me and a couple others I know got a degree but sadly it seems to have been a complete waste for one reason, many of the jobs we apply to all want said amount of years experience. And I'm not talking about high level jobs, I'm not trying to apply for a high manager position or something, I'm talking like entry positions. I literally went and graduated from a college that taught me the skills they're looking for, how is my degree not enough?
The focal point should be capping those who create the problem. Universities are the problem; they are predators just like the banks that had predatory lending practices.
18 year old kids are pressured by friends, family, University, and other people who are supposed to provide them council. These teenagers are used to obeying, so they obey their "advisors" and go to college. They don't know how to calculate things like ROI, cash flow, etc so they make bad decisions about what to study and are then not able to pay off their debt. The problem is university tuition rates and teenagers not being educated in high school about financial literacy. Even if we provided a bail out to this generation, the problem would be worse in the next generation b/c kids have zero financial literacy and the predator (Universities) is still out there.
The solution is financial literacy for kids in high school and capping tuition rates nation wide. The institutions that are more about money than education will leave the market, and academia will return to its original focus of education.
saying a degree will give you a million dollars extra income is not right. most of the benefit from being hard working and smart results in higher incomes, regardless of the degree.
if you don't want to pay back your debt, don't go into debt! how hard can it be to get that?
No
I had a mortgage. I had a car loan. For both of these I VOLUNTARILY agreed to repay the money. It is the same with student loans. You voluntarily agree to take the money...AND PAY IT BACK. It is a contract. Now you want the debt to be forgiven?! How about my mortgage or car loan? Why not "forgive" those...for everyone?
For the sake of fairness it seems like instead of a focusing on student debt we should instead be focus on passing a UBI, because everyone's been effected by colleges ungodly price gouging including those without student debt. Most people who chose not to go to college that I know did so to avoid debt and would have happily gone to college if it made any economic sense to do so. Why should they be punished for refusing to go into debt. Further more a UBI solves other economic injustices, stimulates the economy, and could stimulate public funded campaigns, further more it serves as a platform for distributing reparations to black and native communities. All this while those with any kind of debt get relief during their pay down period.
Yang is buying votes. The cost of UBI would be more than $3 trillion per year; YANG WON'T TELL YOU THAT. The burden to the individual taxPAYer would be more than $43,000 per year. Think about it. Do YOU pay taxes? How does an additional tax bill of $43,000 every year sound to you? Maybe we should just let people KEEP the money they earn?
Great video with a well presented and important information.
So the solution is discouraging people from going to college and treat college as a money investment? That doesn't seem right. You also ignore that giving away 10% of your income for 10 years is not nothing.
Most students drop out in the 1st or 2nd semester. Now they're stuck with debt and no degree.
These students should have gone to a trade school instead of throwing their parents or governments money away.
Should you pay off your school loan debt?
Yes, you incurred the debt knowing full well what it entails and the obligation therein.
Why should I as a tax payer have to foot the bill for your short sightedness and poor preparation?
Now, if you want redress for your poor judgement and or lack of preparation don't dig into my wallet.
Better to learn a trade first THEN pay as you go or save for collage. No debt, you get work experience and something to fall back on if your collage plans don't quite pan out.
If you're insisting on redress for you're perceived wrong your barking up the wrong tree.
If your going to go crying to someone go after the schools.
Do you know that most private universities have endowments
( fancy word for slush funds)
That run into the billions in a lot of cases?
Go look up Harvard's endowments. There's enough money there to put low income kids through 4 years with little or no tuition cost.
Also, people don't respect what they don't have any have any equity in. Like the kid that gets a hot car from his folks after graduation from High School.
Two weeks later its wrapped around a tree.
This entitlement culture is due in large part to poor parenting or no parenting.
Someone has to be the adult and set limits on kids or they grow up being entitled spoiled brats with a liberal arts degree that doesn't pay anything and no work experience.
If you don't have the personal ethics and financial stability to attend a 4 year collage you shouldn't go.
And there's always the G.I.Bill.
Now if the military isn't you're cup of tea I believe that programs such as Job Corp or Peace Corp should be funded to a level whereby you get funds set aside for you as you help others to offset potential collage costs.
Everybody is entitled these days. They want all the benefits without the obligations that go with it.
That smacks of hubris and immaturity.
Collage is SERIOUS business and if your not up to it and can't be responsible enough to engineer a way to cover expenses go learn a trade .
Plenty pay good money and in many cases surpass what you get with a 4 year degree and it looks good on a collage a application and will fatten your wallet.
Lots of kids do it.
But don't come after my wallet and raise my taxes simply because you are too lazy and or too stupid (in which case you don't belong in collage to begin with ) to be industrious or creative enough to finance your own self emposed financial obligations.
The collage industrial complex is now a money making scam that shoves kids into a life long debt to loans and all a lot of them get at the end of four years is a bullshit degree that you cant make money with and a minor in Socialism .
Life is hard work for most people.
Be responsible and don't rely on the government to wipe your ass for you from cradle to grave.
Any government who can give you anything can surely take it away. Education, health care, housing, etc. is NOT a human rightt.
No one owes you a damn thing,
Least of all me.
Get off your ass and get to work and achieve success on your own merits.
You'll feel greater satisfaction than if someone hands it to you on a silver platter
Any we all know how the social security system turned out... I'm still paying my student debt and when it's done it will be a badge of honor and wouldn't change getting it for anything.
This has nothing in common with Social Security. Everybody who is eligible for Social Security benefits has already paid for it with every paycheck they've ever earned.
I never went to college because it was just way too expensive
All bills concerning taxation are supposed to be originated in the House: not the Senate. I’m sure she can find some House rep stooge to introduce that tax though. Forget about fairness did people who slaved through college. What about those who slaved without college at all and are making very well? Not fair that the person who worked hard without college has to pay for the person who went and bombed their degree choice.
If you take out loans to get through college and quit...you still owe that money! It's not the taxpayers obligation to pay for peoples failures. That is immoral, and anyone who thinks with a working brain can see that. That is the problem...people are just not thinking anymore! We are living in a world that combines the 2 movies, Idiocracy and Wall-E! It's getting a little disgraceful honestly.
hmmmmmm, lets do all that and at the same time STOP LENDING HUGE SUMS OF MONEY FOR USELESS DEGREES!!!!
Isn't transparent and affordable healthcare a bigger concern?
No. It's really difficult and expensive to implement an eficient healthcare system, but student loans can be forgiven easily
@@lucas5893 I don't think student loans should be forgiven at all.
They made their bed.
Elizabeth warren not only say she gonna make college free. Also healthcare free. Thats why it's stupid to vote for her. Coz there is no such thing as free lunch.
But they arent mutually exclusive. You can forgive debt AND create transparent affordable healthcare.
@@kenhesselink4594 no u can't
If use tax payers’ money waive it, hell no. It’s Just about fairness.