Tuesday, August 11, 2015

More on Our Indebted Millennials and Nation, Student Loans, Free College, Free Everything and 'President-in-Waiting' Hillary Clinton's Proposed Rescue Package ... Thomas Jefferson on the Immorality of Intergenerational Debt

College costs too much. Government subsidies allow colleges to spend recklessly on salaries, facilities and administrative matters, and then pass along the bill to students, their families and future taxpayers, aka today's students.
In addition to the unconscionable debt burdens associated with the cost of attending college, we also have approximately $200 trillion in unfunded government debt obligations (including Social Security, Medicare, Medicaid and ObamaCare) for which there has been no money set aside to pay for them. Meanwhile, more people are retiring than entering the workforce as a result of demographics and an aging society.

To top it off, we have a slow growing, debt burdened opportunity short U.S. economy which Hillary Clinton and other politicians are ignoring and want We the People to ignore as well. It's election time.

Our ongoing intergenerational immorality play, either knowingly or unknowingly, is handing off to future generations an untenable debt burden which is getting worse with each passing day. And there aren't enough rich people to pay all the bills when they come due.

This is why millennials will never grow up lays out the cold hard facts about the huge student debt obligations of today's young adults:

From the TV show “Girls,” Jemima Kirke, Lena Dunham, Zosia Mamet (left to right).
"Your grown-up children may never hit many of the milestones you’ve come to associate with adulthood — and you can blame their crushing student loan debt for that.

Fully 56% of millennials (compared with 43% of adults overall) with current or past student loans have delayed at least one major life event because of student loan debt, according to a survey ... by And (another) survey . . . came to similar conclusions: Roughly 90% of people ages 18 to 40 (most of this age group is made up of millennials) with student loans say that paying these loans has impacted their day-to-day life, including the achievement of some major life milestones.

Buying a home is the No. 1 thing millennials say they have put off thanks to their student loan debt. The Bankrate survey revealed that 30% of millennials (versus 22% of adults overall) say that student loans have made them delay buying a home. (Incidentally, home ownership for Americans under 35 hit an all-time low last year . . . .

Other major adult milestones have also been put on hold due to student loan debt, including marriage and having kids, the Bankrate survey revealed.

Student loan debt forces us to delay major life events

Percentage of people who say student loan debt made them delay these life milestones
Millennials All adults
Getting married 19%9%
Having kids 14%10%
Buying a car 29%18%
Buying a home 30%22%
Source:  . . . .

This all makes sense given the massive jump in student loan debt among young people. In 2004, Americans under the age of 30 had $146 billion in student loan debt. This number has now more than doubled to $369 billion in 2014, according to Equifax.

And the student loan issue is unlikely to go anywhere. For one, the cost of college continues its rapid ascent: from the 2009/2010 school year to the 2014/2015 year, average net tuition and fees actually paid by in-state students at public four-year schools jumped nearly 50% to $3,030 in inflation-adjusted dollars. The debt levels also continue to rise, with the class of 2015 being the most indebted ever, with an average of $35,000 debt per student, according to, a group of websites about paying for college. Furthermore, now nearly 71% of bachelor’s degree recipients will graduate with a student loan, up from less than half in 1993."

Summing Up

Fear not, young folks.

Presidential hopeful Hillary Clinton is riding to the rescue by proposing that taxpayers contribute another $350 billion to pay tuition for individuals seeking a college education. See Clinton Takes Taxpayers to School.

At this point, she's 'only' trying to make tuition for attendance 'free' at public colleges. See Hillary Clinton Proposes Debt-Free Tuition at Public Colleges.

But as long as she's working hard to win the votes of the unsuspecting young crowd with 'free' tuition at public colleges, why not throw in 'free' tuition payments for private colleges? And why not provide 'free' room and board as well? And 'free' beer and pizza?

And then what about 'free' houses after the 'free' college days are over?

And 'free' credit cards, 'free' cars and 'free' everything throughout adulthood?

But in the end, and long after Hillary has left the White House, the students and their kids will have to pay. And their grandkids too.

What Hillary hasn't told us yet is that there are no free lunches -- not even in election years.

Meanwhile, Hillary is a phony probably on her way to the U.S. presidency.

Does anybody still wonder why I say politics sucks?

Thanks. Bob.

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