A Third Of Student Debt Holders Spent ‘Extra Money’ They Thought Would Be Wiped Clean…

[bobzilla]

Working Instrument and controls tech work, I had short assignments at many places, Steel, Oil, Chemical, Manufacturing, Power plants and food.

I saw the introduction of the College degree only for salaried positions. They started as craft specific. ie: to run a chemical process, you needed to be a chemist, to run a machining process, you needed to have Mechanical engineering, to boss people you needed a management degree. That sounded like a good plan, but quickly fell apart.

That quickly became "any degree was acceptable" for any salaried position. . You would have a female Arts major as a supervisor in manufacturing. An 8th grade history teacher would be hired to manage skilled technical people. A middle aged woman who just got her degree in humanities overseeing project management. EOE audits seemed to force this issue. In the mean while, a well respected man that had spent 23 years in a given department, that was proven expert on all 8 processes in the department would be passed over and forced to submit to people that were inferior in every job aspect to him. Then upper management does not understand why quality products do not get out the door. I postulate this condition is because they themselves are unfit for their positions, no matter their area of training.

My folks worked at a plant making car interior parts. They would only hire fresh out of college grads for supervisory positions, no longer allowed experience to play a part. Every 12-18 months they'd hire some fresh face who would come in and try to implement the same 4-5 techniques some college professor who's never worked one of these places in their life taught them. They would all fail, they would be confused why none of it worked and would pass the buck for a while then get canned and the process would start all over.

That place shut down and outsourced to Mexico I believe.

 

[KLB]

That place shut down and outsourced to Mexico I believe.

It shutdown BECAUSE it was moved to Mexico. That happened to a lot of auto component manufacturers after NAFTA.

 

[bobzilla]

It shutdown BECAUSE it was moved to Mexico. That happened to a lot of auto component manufacturers after NAFTA.

They shut down last year. It wasn't because of NAFTA. It was poorly run and was no longer profitable. They watched it happen for 20 years.

 

[Wstar425]

Working Instrument and controls tech work, I had short assignments at many places, Steel, Oil, Chemical, Manufacturing, Power plants and food.

I saw the introduction of the College degree only for salaried positions. They started as craft specific. ie: to run a chemical process, you needed to be a chemist, to run a machining process, you needed to have Mechanical engineering, to boss people you needed a management degree. That sounded like a good plan, but quickly fell apart.

That quickly became "any degree was acceptable" for any salaried position. . You would have a female Arts major as a supervisor in manufacturing. An 8th grade history teacher would be hired to manage skilled technical people. A middle aged woman who just got her degree in humanities overseeing project management. EOE audits seemed to force this issue. In the mean while, a well respected man that had spent 23 years in a given department, that was proven expert on all 8 processes in the department, would be passed over. He would be forced to submit to people that were inferior in every job aspect to him. Then upper management does not understand why quality products do not get out the door. I postulate this condition is because they themselves are unfit for their positions, no matter their area of training.

The Peter Principle in action. Rise to your level of incompetence, then make life miserable for everyone under and around you. Some people, that’s the first level……my paraphrase.

 

[BugI02]

I'm being judgemental, about people NOT wanting to pay loans back, that thought they were getting money to pay loans back, but instead were just blowing the money.

Someone wants to get a loan, to educate and invest in themself to make more in the future... more power to them.
But, they can pay it back.

Someone wants a loan to go to school just for pure education and not profit... more power to them.
But they can pay it back.

Someone is told they are being given money to help pay the loan, and they blow it.
NO.
NO.
NO.

Quite so

natdscott -
mor·al haz·ard
noun
ECONOMICS

1. lack of incentive to guard against risk where one is protected from its consequences

 

[700 LTR 223]

“The poll by Intelligent.com surveyed 977 people who would have qualified for at least $10,000 of debt relief under Biden’s student loan forgiveness plan, which was struck down by the Supreme Court last month.

Loan forgiveness? More like Biden's Democratic Socialist Party Vote buying plan paid for by millions of working Americans who will see no "forgiveness" benefits.

 

[KLB]

They shut down last year. It wasn't because of NAFTA. It was poorly run and was no longer profitable. They watched it happen for 20 years.

Last year? Dang. Did Covid put the final nail in the coffin?

 

[Ark]

My folks worked at a plant making car interior parts. They would only hire fresh out of college grads for supervisory positions, no longer allowed experience to play a part. Every 12-18 months they'd hire some fresh face who would come in and try to implement the same 4-5 techniques some college professor who's never worked one of these places in their life taught them. They would all fail, they would be confused why none of it worked and would pass the buck for a while then get canned and the process would start all over.

That place shut down and outsourced to Mexico I believe.

I tried to talk my way into a job that sounds similar recently. Attempted to sell the whole "I'm college educated BUT I also did this and that real world mechanical job so I'll be able to actually understand your workforce when they talk to me about stuff" line.

Like 80% sure the job went to a brand new college grad who doesn't know which end of a lathe to keep her hair away from.

 

[bobzilla]

Last year? Dang. Did Covid put the final nail in the coffin?

No they were headed there already. They hadn’t renewed the uaw contract and there were rumors starting in 2019 when they weren’t replacing people that left

 

[phylodog]

Of those, one in three said they spent “extra money” because they were assuming forgiveness, with many spending that money on things like vacations, retail items, and even alcohol, drugs, and gambling.“

So..... You're telling me that the same people who racked up tens of thousands of dollars in student debt to obtain a near worthless degree followed that great decision up with this one?

Color me shocked.

 

[Born2vette]

When I finished my first degree my first job as a college grad paid $15k a year. I owed about $8k on that degree. I worked at least 30 hours a week during school and a full + part time job during the summer. Had to start paying it off within a few months of graduating at $76/month (interest was around 5% IIRC). I drove junk cars for years. Did not buy a house or a Condo and never bought a new car until 16 years later. Interest rates when I got my second degree were in the mid teens. Our first house was financed at 13% and that was a bargain from the bank of father-in-law (and yes, he charged interest and got paid every cent owed). I got my second degree with partial tuition reimbursement that was a perk of my job, got one $2k loan that was forgiven if I worked 2 years full time after graduating. I worked full time, took no vacations for several years, did not play golf except on rare occasions and graduated with only the one loan with work requirement. Got my Masters degree while working full time, no loans but was making a house payment at the time, got a traineeship that paid tuition (there were several unclaimed those years, most never looked into what cash help they could get). First job in my field with a masters degree paid $47k and entailed 60 hour work weeks (this was 20 years after my first degree).

Wife worked full time and has a BS and MS that she got with minimum loans working through school like I did.

We paid off our home 12 years before we retired and paid the mortgage payment to ourselves (investment accounts, etc) until we retired 2 years ago. Last car we financed was a 1992 Mazda Protege. Never carried a balance on our credit cards, if we could not pay for it we did not buy it. Even when I took home a little over $1k a month I always paid myself (5% minimum) into savings. There were times I sold stuff to avoid debt (a camera, guitar, stereo system, etc) on an unplanned expense.

Now we are not uber rich bit delayed satisfaction has paid off and we have enough to have a great retirement including an occasional new car, a yearly expensive trip and and several smaller trips during the year.

Yes its different today but when I could not make a decent living with my first degree (wildlife biology) I took stock, found a passion in a field that would be around (and mostly financed as I went was another requirement) and chose my second career in nursing (only one other guy in my class), got a masters as a nurse practitioner. No I never got rich and a degree in business or engineering would have paid more but I loved what I did, worked hard and got to work with some amazing people (and a few despicable ones as well) and never had to worry about being laid off/downsized.

AND I PAID OFF EVERY LOAN AS PROMISED WHEN I SIGNED THE PAPERS!

 

[gregkl]

I tried to talk my way into a job that sounds similar recently. Attempted to sell the whole "I'm college educated BUT I also did this and that real world mechanical job so I'll be able to actually understand your workforce when they talk to me about stuff" line.

Like 80% sure the job went to a brand new college grad who doesn't know which end of a lathe to keep her hair away from.

Pretty sure I’m being aged out on several job opportunities.

 

[KLB]

Pretty sure I’m being aged out on several job opportunities.

"Overqualified"

 

[FNparabellum]

Well blind faith in a political figurehead will result in consequences. It doesn't matter who it is dont believe they have your best interest at heart.

 

[DFacres]

 

[spfldbowhunter]

They really need to limit how much you can borrow and what you can use loan funds for within a school. Taking out the max amount for public university shouldn’t be an option.

 

[BugI02]

They really need to limit how much you can borrow and what you can use loan funds for within a school. Taking out the max amount for public university shouldn’t be an option.

Better yet, limit what you can borrow for everyone and every school. Either the Ivys pony up more aid from the endowment or pick from a wealthier clientele

If they want greater diversity they can pay for it, the tax-payer shouldn't be on the hook for it

 

[bgcatty]

Woke, libtard idiots who want a free handout rather than working hard to meet their obligations. Nobody forced them to take out student loans! They just don’t want to work and do what it takes to perform their end on the loan contract. If they didn’t want so much debt they could have gone to a trade school, get an apprenticeship and then go forward with a meaningful career. $crew them all! Period!

 

[spfldbowhunter]

Better yet, limit what you can borrow for everyone and every school. Either the Ivys pony up more aid from the endowment or pick from a wealthier clientele

If they want greater diversity they can pay for it, the tax-payer shouldn't be on the hook for it

Ivy League schools do provide a lot of free financial assistance based on need. I’d say the typical IL grad isn’t who we’re talking about though.

To clarify my comment though, the limit should equal what you owe after any scholarships/grants each year IMO. If you need $8k to cover your school expenses. The ability to take out beyond what you need is just unnecessary and verging on predatory. I could go on with what schools charge for “student fees” and what that money goes towards.

 

[BugI02]

Ivy League schools do provide a lot of free financial assistance based on need. I’d say the typical IL grad isn’t who we’re talking about though.

To clarify my comment though, the limit should equal what you owe after any scholarships/grants each year IMO. If you need $8k to cover your school expenses. The ability to take out beyond what you need is just unnecessary and verging on predatory. I could go on with what schools charge for “student fees” and what that money goes towards.

With that system the taxpayer is still on the hook for the loans. The college that accepted the student needs to have more skin in the game. Let everybody borrow max $10000 per year and if you wish to go to a more expensive school you and the school need to figure that out