Econ 101: Massive debt is OK
Student debt a national disgrace, blogger says.
He's no stranger to controversy, that "Mr. ToughMoneyLove." Whether it's help for homeowners in default -- he called that post "Homeowner bailouts destined to fail" -- or sympathy for a particular 54-year-old GM retiree -- "It's second-career time, my friend, and quit the whining," he said -- he's never shy with his opinions.
Recently, he blamed free-spending universities for teaching impressionable minds that it's OK to carry huge debt.
Try this quote on for size, from his post "The college student debt machine: A national disgrace" at Tough Money Love.
The facts are that our colleges and universities are uniquely and perversely playing dual roles in the entire student loan debt fiasco.
Role No. 1: They need student loan money to pay for budget increases that far outstrip inflation or family income growth.
Here's the crux of the matter. He writes, "Do you think it is mere coincidence that students who graduated from colleges over the past 10 years have become so comfortable with debt?" And, he adds, these are the same people who are working on Wall Street.
Mr. ToughMoneyLove offers several suggestions to install financial discipline in college administration halls. He adds, "How about we ask colleges to at least not lead the nation in hyper-inflationary increases? Let the health care industry move into first place. We will go after it next."
Published Dec. 9, 2008
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