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News Link • Obama Administration

America Eats Its Young

•, Wendy McElroy
The law is more accurately called the Debt Serf Pipeline Act because students who use the loans are pouring their financial futures down the insatiable drain of the state. Like the grads before them, they are likely to end up moving back home and working two minimum wage jobs, if they are lucky enough to get them. Their subsistence wages will go toward enriching the federal government which expects to make $184+ billion on the loans over the next 10 years. Because Congress excluded student loans from bankruptcy proceedings, there is no way out for this generation of grads. The debt collectors will dig them up from the grave, if necessary.

The number of young people who are on the fast track to serfdom is shocking. On August 20th the Education Department reported that 57% of undergraduates used federal student loans in 2011-12. The average loan is $8,200. The average total debt for graduating students is $30,000. Approximately 38 million Americans now have outstanding student debt.

The students are personally responsible for the debts, no question. But an aggressive and deceptive campaign is being pressed upon 18-year-olds who cannot legally buy a beer and have no financial experience. The Free Application for Federal Student Aid form is necessary to qualify; the FAFSA site declares that there is no excuse for not applying since many middle-class families are eligible.

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