Student loans are crushing young Americans with massive debt as they start out in life. The cost of college has skyrocketed out of control, making student loans a requirement for an advanced education, unless one comes from a wealthy family.
The Conservative Solution
The conservative solution is to put an end to student loans. Conservatives believe that if the supply of college students decreases due to high cost, the price will eventually go down.
The conservative argument also claims that since the introduction of federal student loans, the cost of attending college has skyrocketed.
But if you understand the history of student loans, you’ll understand that student loans are not the cause of college tuition rates skyrocketing.
Student Loans Originated In 1958
With the exception of Harvard University in 1840, student loans originated with the National Defense Education Act. This legislation came about during the year 1958 to address the growing class disparity of obtaining a college education.
The cost to attend college was becoming prohibitive unless a young adult came from a wealthy family. Middle class families, which are still the majority of the US population, did not have the extra funds to pay for their child’s college costs.
The National Defense Education Act of 1958 was introduced to address the growing problem. This act allowed Americans to access loans, obtained directly from US Treasury funds, to pay for college.
A few years later, some politicians did not like how this operation was appearing on the books, as the US Treasury was showing an initial loss of funds from lending student loans. Of course, the students would pay back the loans after graduation. But having this loss of funds on the US Treasury books bothered some politicians.
Fix The Books
To address the financial book appearance dilemma, politicians came up with the idea of the banks managing federally guaranteed student loans. This change would remove the appearance of financial loss regarding the US Treasury.
Thus in 1965, the US government began guaranteeing student loans via banks and lenders, instead of students receiving loans directly from the US Treasury.
If you look at the Business Insider chart that reveals cost of living increases, home prices over the years, and college tuition costs, you will discover that college tuition only modestly increased until around the late 1980s.
This fact combined with the above history lesson reveals that student loans are not the cause of skyrocketing tuition costs.
Let’s Uncover The Truth
The real cause of skyrocketing tuition costs stems from the US government reducing funds to the states. Because the states then have less money, the states are forced to reduce funding to public universities and public colleges.
Obviously, these colleges and universities cannot operate at a loss. Therefore, the reduction of state funding for public colleges and universities are passed on to students via higher tuition costs.
Let’s Uncover Some More Truth
It’s well understood that the USA should maintain a strong military defense, but we need to interject the word – smart – with military and defense spending.
The USA currently spends more on military and defense, than the next 13 (or so) countries combined. US taxpayers are funding around 700 – 800 military installations around the world which is extremely costly, to say the least.
Everyone is aware of the fact that the USA has access to numerous advanced technologies, including robots, drones, innovative spyware, etc.
Therefore, isn’t it glaring obvious that the USA does not need to spend hundreds of billions of dollars annually to maintain so many international military installations?
Isn’t it glaring obvious that this is a ridiculous waste of the people’s money?
Someone Forgot That It’s The People’s Money
If you want the reason why this expensive, unnecessary operation continues, follow the money trail of political campaign donations from war profiteers, lobbyists and special interest groups.
These corporations are making loads of cash, thanks to bribed politician’s approval of using the people’s money to fund these ongoing ventures.
What Does All This Mean?
In order to continue funding the USA’s bloated military defense budget, the federal government has decreased funding to the states that help pay for various programs, including public colleges and universities.
The US government has decided to spend hundreds of billions of US tax dollars every year to fund outdated operations, rather than using the people’s money to help advance all Americans in the United States.
What are your thoughts?
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