Borrowed Future uncovers the dark side of the student loan industry and exposes how the system is built to work against you. Start streaming October 14.

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"The student loan problem is out of control, and it's messed up millions of lives," Ramsey, who serves as Executive Producer of "Borrowed Future," said in a release. "Smart young people got sucked into a false narrative about what success looks like, and it's left them paralyzed. It's time to call the student loan industry what it is: an epic failure."

"Borrowed Future" features Ramsey, who hosts the nationally-syndicated financial advice program "The Dave Ramsey Show," along with Seth Godin, Kristina Ellis, Dr. John Delony and Anthony ONeal, as well as CEO of the mikeroweWORKS Foundation, Mike Rowe.

The subjects of the documentary are college graduates who owe between $9,000 and $1 million in student loan debt, a debt-free college graduate, and high schoolers who haven't yet questioned the norm of student loans.

"This film is a warning for kids and teenagers who aren't victims of the student loan industry yet," David DiCicco, Creative Director of Video at Ramsey Solutions added. "I want viewers to walk away from this film with eyes wide open to the true cost of student loans. Teens need to know that they can have the American Dream they just shouldn't listen to America on how to get it." Link

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[url=http://www.insideradio.com/free/dave-ramsey-produced-documentary-on-dangers-of-student-loans-debuts-today/article_96b7cdf4-2c66-11ec-ad1e-1fa9fb126246.html][/url]This should be an interesting watch.

Student loans are a symptom of a bigger problem.... the money is bad.

Fiat education, fiat Healthcare, fiat food... all rotten and festering at this point.

Holy crap, $1 million in student loan debt? Insanity!

Will be watching.

WSJ ripped Baylor a new one yesterday:

https://www.wsj.com/articles/baylor-university-college-debt-parent-plus-loans-11634138239?reflink=share_mobilewebshare

How Baylor Steered Lower-Income Parents to Debt They Couldn't Afford
The Texas university and some other wealthy colleges guided families into no-limit Parent Plus loans, leaving them with onerous payments; 'I will never get it all paid off'

"Student Loan Industry" is the federal government.

Like everything else they touch this turned to *****

Wait until they figure out even after they do pay off all that debt they took on, they are also on the hook via taxes for all the Trillions in spending that's happened the last few decades. At least they had to sign on the dotted like for the student loans.

MelvinUdall said:

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Holy crap, $1 million in student loan debt? Insanity!

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....and watch it be for something in liberal arts, like 9th century gender studies and the impact on planetary alignment.

Predatory lending backed by the government and the higher education system. Think about it. I've switched my own thinking about this over the past decade... used to think every borrower was a dumbass and at fault. Now, I see the system is a sham & just another means to get to an ultimate crisis that government must fix. **** no, they are creating it.

Young people get told they can live a resort like existence for 4 years with alcohol, sex, and good times and then get a job making 6 figs afterward by borrowing ridiculous amounts of money they have no business being lent.

And we are supposed to expect them to turn it down?

government guaranteed loans are the worst thing to happen to college education.

it has bloated liberal arts programs, led to higher costs and useless college fees, created a slew of useless degrees, turned 20 somethings into indentured servants, and helped to financially cripple a generation.

that being said, the students should still have to pay them back.

without accountability there will be no change. and accountability isn't saying "I shouldn't have to take responsibility for my mistake."

responsibility is learning from your mistake and fulfilling your obligations as best as you can.

We can hold students in debt accountable while changing the system.

Great post

Ags4DaWin said:

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Young people get told they can live a resort like existence for 4 years with alcohol, sex, and good times and then get a job making 6 figs afterward by borrowing ridiculous amounts of money they have no business being lent.

And we are supposed to expect them to turn it down?

government guaranteed loans are the worst thing to happen to college education.

it has bloated liberal arts programs, led to higher costs and useless college fees, created a slew of useless degrees, turned 20 somethings into indentured servants, and helped to financially cripple a generation.

that being said, the students should still have to pay them back.

without accountability there will be no change. and accountability isn't saying "I shouldn't have to take responsibility for my mistake."

responsibility is learning from your mistake and fulfilling your obligations as best as you can.

We can hold students in debt accountable while changing the system.

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Nailed it.

Biggest issue is govt funding via grants and loans to for profit colleges. It's shameful and both sides of aisle are to blame.

Liberal arts programs are a hot topic and no doubt lots of money being spent there which will not payoff for degree recipients, but they are a drop in the bucket compared to Art Institute, Capella, U of Phoenix, etc type programs.

There was PBS Frontline doc on this several years ago, that should make any sane person's stomach churn.

I want to stress in all these conversations that every middle class student of ANY major going to Rice, or Vandy, or Stanford, or an Ivy level private school are getting 100% of their needs met. They're often going to those schools for free.

Even English majors that go to A&M, UNC, Georgia, South Dakota State, or UCLA and pay in state tuition are fine. Any kid going to get vocational degree at any state school (if they're in state or out), ends up being ok.

The Tip of the iceberg is the Baylor/TCU level private school.

The real problem is the outright for profit schools promising the world without any accreditation. Devry Institute, ITT Tech, and even Grand Canyon University might just be outright scams. Also Law School.

I've said it before and I'll say it again even though few agree with me. Someone should propose a reasonable compromise that ends the federally backed student loan program and provides some sort of relief/bailout to the victims of this scam. Not saying all the debt should be forgiven, but definitely some of it should. Now I'll read all the cries and outrage from people that have paid back their debt and can't stand the idea of someone else receiving a helping hand they didn't get.

Going to watch this tonight most likely.

is there any other area of finance where 17 year olds with no income to speak of (or at best a vague prospect of future income) are given access to tens or even hundreds of thousands of dollars of credit?

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"Student Loan Industry" is the federal government.

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This right here

Nope
Nope
Nope

Who held a gun to their heads and made them take out these loans?

Even Veterans were victimized by predatory schools with their eyes on the taxpayer funded education:[url=https://law.yale.edu/yls-today/news/vets-clinic-highlights-need-protect-veterans-predatory-colleges][/url]

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Vets Clinic Highlights Need to Protect Veterans from Predatory Colleges

"Veterans are angry when they find out they were deceived by a college recruiter. They're even angrier when they find out the school's predatory practices are well known and that VA should have shut the school off from G.I. Bill approval. Veterans deserve better," said Sara Nolan Collins, Legal Services Director of Veterans Education Success, a D.C.-based organization that provides free legal services to veterans deceived by college recruiters as well as public policy expertise on the G.I. Bill.

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How to Stop Schools That Prey on Veterans
The recently closed loophole relates to a provision known as the 90/10 rule. As written in 1998, it required for-profit schools to get at least 10 percent of their revenue from sources other than federal student aid. The measure was intended to prevent federal aid from serving as the sole source of money for for-profit schools that were unable to attract private dollars. But Congress thwarted this common-sense goal by allowing the colleges to count some forms of federal aid including G.I. Bill education benefits and Department of Defense Tuition Assistance as privately raised.

This maneuver turned military veterans into what a Senate report called "dollar signs in uniform." Predatory schools, including some that later collapsed under fraud allegations, misrepresented themselves to attract as many veterans as possible. So many service members were left in the lurch when the schools failed that Congress had to pass a law restoring education benefits to G.I. Bill users who had enrolled in programs that no longer existed.

The new version of the 90/10 rule will require for-profit schools to get at least 10 percent of their funding from "nonfederal" sources. One problem with the new provision is that it does not take effect until 2023, which could allow for more exploitation. This puts the onus on the Biden administration to better police risky or genuinely fraudulent schools.

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Who held a gun to their heads and made them take out fund these loans?

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Taxpayers

I imagine a meeting like the one in "the big short" where the guy invents mortgage backed securities, but instead a system of finance where the schools and admins all get incentvized to "no child left behind" so that more supply of college education is demanded and the need for government backed financing is necessary!

FOR THE CHILDREN they laugh as they all take shooters of Louis XIII because money isn't real.

AG1904 said:

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I've said it before and I'll say it again even though few agree with me. Someone should propose a reasonable compromise that ends the federally backed student loan program and provides some sort of relief/bailout to the victims of this scam. Not saying all the debt should be forgiven, but definitely some of it should. Now I'll read all the cries and outrage from people that have paid back their debt and can't stand the idea of someone else receiving a helping hand they didn't get.

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I'll print a trillion dollar coin for them.

The solution is simple. Don't sign your name on a loan that you can't pay back. The only people to blame are those that took the loan. Plenty of trade schools out there that are affordable and will prepare kids for a career.

The easy button fix is to allow people to get rid of student loans through bankruptcy. That is a real penalty but it is something they can recover from, also will make them understand debt while getting a new start.

There can also be some compromises in terms of reduced amounts in extreme circumstances like people that owe the IRS a lot of money but not total forgiveness.

Of course those are rational responses so don't count on them happening.

It's also clear that they could cut out overhead at schools and save a ton of money, especially in the areas like Diversity departments. I think A&M has 25 people or something like that, many of which make serious coin, that are in charge of Diversity. Lunacy.

Cassius said:

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Ags4DaWin said:

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Young people get told they can live a resort like existence for 4 years with alcohol, sex, and good times and then get a job making 6 figs afterward by borrowing ridiculous amounts of money they have no business being lent.

And we are supposed to expect them to turn it down?

government guaranteed loans are the worst thing to happen to college education.

it has bloated liberal arts programs, led to higher costs and useless college fees, created a slew of useless degrees, turned 20 somethings into indentured servants, and helped to financially cripple a generation.

that being said, the students should still have to pay them back.

without accountability there will be no change. and accountability isn't saying "I shouldn't have to take responsibility for my mistake."

responsibility is learning from your mistake and fulfilling your obligations as best as you can.

We can hold students in debt accountable while changing the system.

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Nailed it.

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This is what bankruptcy was always meant for. Yes, people always focus on the lendee when bankruptcy is talked about but bankruptcy is also a means to keep the lenders in check to keep from issuing bad loans.

Yes, they should pay it back that still is their obligation but if you cannot pay back your debts then you file for bankruptcy. At some point the system will find balance and equilibrium.

However, the mantra that government wants 'no one left behind' or 'everybody deserves to be highly educated' is not good. We are seeing the consequences of all these policies.

Student loans should have escalators of interest based upon the degree path chosen.

STEM majors receive low/no interest loans as an incentive to have a degree that is beneficial.

Liberal Arts/BS Majors should have a max borrow limit. I went to HS with a girl who has a doctorate in something like ancient mid east literature or something. She is constantly *****ing that she cant find a lucrative job. Well no ***** She should have never been able to keep borrowing to fund a college lifestyle where she now has no intent on paying it off.

I Have Spoken said:

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Predatory lending backed by the government and the higher education system. Think about it. I've switched my own thinking about this over the past decade... used to think every borrower was a dumbass and at fault. Now, I see the system is a sham & just another means to get to an ultimate crisis that government must fix. **** no, they are creating it.

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This. And all to funnel cash flow into "academia."

I find it hilarious that during the 2020 election cycle fell for the "Democrats will forgive student loans!" tripe. Here's what is actually going on:

• FedGov is the actual lender;
• Borrower gets a loan;
• Cash goes mostly to university, some to borrower consumption;
• Because of the current state of the law (11 U.S.C. 523(a)(8)), FedGov functionally gets a lien on borrower's future ability to earn money for the shorter of (1) time until loan payoff, or (2) death.
• Government gets (1) control and (2) cash flow. They own the borrower.

So why on earth would anyone ever believe that the government would give up any part of an asset that gives them control over citizens and endless cash flow?

AG1904 said:

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I've said it before and I'll say it again even though few agree with me. Someone should propose a reasonable compromise that ends the federally backed student loan program and provides some sort of relief/bailout to the victims of this scam. Not saying all the debt should be forgiven, but definitely some of it should. Now I'll read all the cries and outrage from people that have paid back their debt and can't stand the idea of someone else receiving a helping hand they didn't get.

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The highest debts are usually the hardest cases to feel sorry for.

There's nobody sobbing in front of a camera with 250k+ of debt who picked a major with a good career track at a public school. Those are called doctors and lawyers. Those degrees have their own problems, but overall they'll be fine.

As the debt gets higher and higher the stories I've heard are just absolutely crazy. For example, knew a guy in grad school that did 6 years tulane for a bachelors+masters in philosophy. 5-6 year phd philosophy program at A&M. He votes, preaches and drones on and on about how bad the capitalism education system is without batting an eye at his own participation in it.

TxTarpon said:

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Even Veterans were victimized by predatory schools with their eyes on the taxpayer funded education:[url=https://law.yale.edu/yls-today/news/vets-clinic-highlights-need-protect-veterans-predatory-colleges][/url]

Quote:

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Vets Clinic Highlights Need to Protect Veterans from Predatory Colleges

"Veterans are angry when they find out they were deceived by a college recruiter. They're even angrier when they find out the school's predatory practices are well known and that VA should have shut the school off from G.I. Bill approval. Veterans deserve better," said Sara Nolan Collins, Legal Services Director of Veterans Education Success, a D.C.-based organization that provides free legal services to veterans deceived by college recruiters as well as public policy expertise on the G.I. Bill.

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Quote:

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How to Stop Schools That Prey on Veterans
The recently closed loophole relates to a provision known as the 90/10 rule. As written in 1998, it required for-profit schools to get at least 10 percent of their revenue from sources other than federal student aid. The measure was intended to prevent federal aid from serving as the sole source of money for for-profit schools that were unable to attract private dollars. But Congress thwarted this common-sense goal by allowing the colleges to count some forms of federal aid including G.I. Bill education benefits and Department of Defense Tuition Assistance as privately raised.

This maneuver turned military veterans into what a Senate report called "dollar signs in uniform." Predatory schools, including some that later collapsed under fraud allegations, misrepresented themselves to attract as many veterans as possible. So many service members were left in the lurch when the schools failed that Congress had to pass a law restoring education benefits to G.I. Bill users who had enrolled in programs that no longer existed.

The new version of the 90/10 rule will require for-profit schools to get at least 10 percent of their funding from "nonfederal" sources. One problem with the new provision is that it does not take effect until 2023, which could allow for more exploitation. This puts the onus on the Biden administration to better police risky or genuinely fraudulent schools.

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I want the specific schools named and shamed.

Whirligigs said:

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Cassius said:

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Ags4DaWin said:

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Young people get told they can live a resort like existence for 4 years with alcohol, sex, and good times and then get a job making 6 figs afterward by borrowing ridiculous amounts of money they have no business being lent.

And we are supposed to expect them to turn it down?

government guaranteed loans are the worst thing to happen to college education.

it has bloated liberal arts programs, led to higher costs and useless college fees, created a slew of useless degrees, turned 20 somethings into indentured servants, and helped to financially cripple a generation.

that being said, the students should still have to pay them back.

without accountability there will be no change. and accountability isn't saying "I shouldn't have to take responsibility for my mistake."

responsibility is learning from your mistake and fulfilling your obligations as best as you can.

We can hold students in debt accountable while changing the system.

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Nailed it.

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This is what bankruptcy was always meant for. Yes, people always focus on the lendee when bankruptcy is talked about but bankruptcy is also a means to keep the lenders in check to keep from issuing bad loans.

Yes, they should pay it back that still is their obligation but if you cannot pay back your debts then you file for bankruptcy. At some point the system will find balance and equilibrium.

However, the mantra that government wants 'no one left behind' or 'everybody deserves to be highly educated' is not good. We are seeing the consequences of all these policies.

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There is no asset secured to your educational loan. They can't go repo your knowledge, diploma, or all the beer you drank in a lazy river. That puts this uncollateralized loan as the cheapest interest rates out there at 8%. If you want bankruptcy, the interest rate has to reflect that. And you'll start seeing some credit card level interest rates and some rethinking of decisions.

......... said:

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.....

We can hold students in debt accountable while changing the system.

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Great post.

A bailout just completes the distribution of wealth from the taxpayers to the government here. Every loan I have received has been based upon my ability to pay combined with any assets I have to back the loan. Tens to hundreds of thousands of dollars for a degree for which there is no career, or one for little to no money, should have never been applied for or loaned.

Boodlum said:

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Student loans should have escalators of interest based upon the degree path chosen.

STEM majors receive low/no interest loans as an incentive to have a degree that is beneficial.

Liberal Arts/BS Majors should have a max borrow limit. I went to HS with a girl who has a doctorate in something like ancient mid east literature or something. She is constantly *****ing that she cant find a lucrative job. Well no ***** She should have never been able to keep borrowing to fund a college lifestyle where she now has no intent on paying it off.

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Or just have the government stop making them and make them completely dischargeable in bankruptcy like a signature loan.

Of course, that will bankrupt academia beyond the massively endowed institutions quickly.

But it will make rational lenders act rationally.

ThunderCougarFalconBird said:

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Boodlum said:

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Student loans should have escalators of interest based upon the degree path chosen.

STEM majors receive low/no interest loans as an incentive to have a degree that is beneficial.

Liberal Arts/BS Majors should have a max borrow limit. I went to HS with a girl who has a doctorate in something like ancient mid east literature or something. She is constantly *****ing that she cant find a lucrative job. Well no ***** She should have never been able to keep borrowing to fund a college lifestyle where she now has no intent on paying it off.

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Or just have the government stop making them and make them completely dischargeable in bankruptcy like a signature loan.

Of course, that will bankrupt academia beyond the massively endowed institutions quickly.

But it will make rational lenders act rationally.

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Biden made student loans not part of bankruptcy, iirc.